data regarding the cash flows that were estimated for each proposal was not included in...
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data regarding the cash flows that were estimated for each proposal was not included in the rt salvage value that will be recovered in Year 3 . Here is the information you have (in Smillions): a. Determine the two missing data amounts (\$millions). b. Suppose the appropriate cost of capital for each alternative is 10%. Using this information, determine the NPV of each proposal. The NPV for proposal A is $ million. (Do not round until the final answer. Then, round to two decimal places.) The NPV for proposal B is $ million. (Do not round until the final answer. Then, round to two decimal places.) The NPV for proposal C is 9 million. (Do not round until the final answer. Then, round to two decimal places.) Which project should the firm choose? The firm should choose project A. The firm should choose project B. The firm should choose project C. All three projects have the same value. c. Why is ranking the projects by their IRR not valid in this situation? A. The projects have a total number of years. B. All the IRR values were calculated using different interest rates. C. The projects have different scales and different patterns of cash flows over time. D. All the IRR values are positive, which represents a loss in value. data regarding the cash flows that were estimated for each proposal was not included in the rt salvage value that will be recovered in Year 3 . Here is the information you have (in Smillions): a. Determine the two missing data amounts (\$millions). b. Suppose the appropriate cost of capital for each alternative is 10%. Using this information, determine the NPV of each proposal. The NPV for proposal A is $ million. (Do not round until the final answer. Then, round to two decimal places.) The NPV for proposal B is $ million. (Do not round until the final answer. Then, round to two decimal places.) The NPV for proposal C is 9 million. (Do not round until the final answer. Then, round to two decimal places.) Which project should the firm choose? The firm should choose project A. The firm should choose project B. The firm should choose project C. All three projects have the same value. c. Why is ranking the projects by their IRR not valid in this situation? A. The projects have a total number of years. B. All the IRR values were calculated using different interest rates. C. The projects have different scales and different patterns of cash flows over time. D. All the IRR values are positive, which represents a loss in value
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