Hello, I only need the answers for b-1 where it's in red. I tried those...

90.2K

Verified Solution

Question

Finance

Hello, I only need the answers for b-1 where it's in red. I tried those answers and they are not correct..

image

Consider projects A and B with the following cash flows: A B CO -$34 - 59 C1 +$18 + 34 C2 +$18 + 34 C3 +$18 + 34 a-1. What is the NPV of each project if the discount rate is 10%? (Do not round intermediate calculations. Round your answers to 2 decimal places.) a-2. Which project has the higher NPV? b-1. What is the profitability index of each project? (Do not round intermediate calculations. Round your answers to 2 decimal places.) b-2. Which project has the higher profitability index? c. Which project is most attractive to a firm that can raise an unlimited amount of funds to pay for its investment projects? d. Which project is most attractive to a firm that is limited in the funds it can raise? Answer is complete but not entirely correct. Project A Project B NPV of each project if the discount rate is 10% $ 10.76 $ 25.55 Which project has the higher NPV? Project B a- 1. a- 2. b- 1. b- 2. Profitability index of each project $ 1.32 X $ 1.43 x Project B C. Which project has the higher profitability index? Which project is most attractive to a firm that can raise an unlimited amount of funds to pay for its investment projects? Which project is most attractive to a firm that is limited in the funds it can raise? Both >>> d. Project B

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students