BMI is considering a project that has a cost of $33,578.17 and it's expected net cash inflows are $12,000 per year for 4 years. What is the project's IRR?

10%
13%

16%

18%

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A firm with a cost of capital of 13 percent is evaluating three capital projects. The internal rates of return are as follows:

The firm should __________.
(hint: Positive NPV is the key)

A) accept Project 2 and reject Projects 1 and 3

B) accept Projects 2 and 3 and reject Project 1

C) accept Project 1 and reject Projects 2 and 3

D) accept Project 3 and reject Projects 1 and 2

Solution Preview

BMI is considering a project that has a cost of $33,578.17 and it's expected net cash inflows are $12,000 per year for 4 years. What is the project's IRR?

Woodgate Inc. is considering a project with the following after-tax operating cash flows (in millions of dollars):
Project
Year
Cash Flow
0
-$300
1
125
2
75
3
200
4
100
The project has a WACC of 10%. What is the project'sIRR?

Design a modularized Body Mass Index (BMI) Program which will calculate the BMI of a team player. The formula to calculate the BMI is as follows:
BMI = Weight * 703/Height2
Your program design should contain the following:
- A method to obtain the weight of a player
- A method to obtain the height of a player
- A met

(10-1)
NPV
A project has an initial cost of $40,000, expected net cash inflows of $9,000 per year for 7 years, and a cost of capital of 11%. What is the project's NPV (Hint: Begin by constructing a time line.)
(10-2)
IRR
Refer to Problem 10-1. What is the Project'sIRR?
(10-3)
MIRR
Refer to Problem 10-1 What is t

Project SS costs $52,125, its expected net cash flows are $12,000 per year for 8 years, its WACC is 12%.
What is the project's NPV?
IRR?
MIRR?
Payback Period?
Discounted Payback Period?
(Show calculations)

Details: The United States is becoming more health conscious, and as a result, the problem of obesity has gotten more attention. The Body Mass Index (BMI), relates a personĂ¢??s height and weight, and is often used to determine if someone is overweight. The table below tells the weight status for a given BMI.
BMI
Weight S

4. The budget committee has received the following projects. They are mutually exclusive. The Company uses 10% as the rate of return.
Year Project A Project B
0 - 30,000 - 60,000
1 10,000

10-5: (Payback period, NPV, PI, and IRR calculations) You are considering a project with an initial cash outlay of $80,000 and expected free cash flows of 20,000 at the end of each year for 6 years. The required rate of return for this project is 10 percent.
a. What is the project's payback period?
b. What is the project's NPV

1. Blanchford Enterprises is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's projected NPV can be negative, in which case it will be rejected.
WACC = 10%
Year: 0 1

The United States is becoming more health conscious, and as a result, the problem of obesity has gotten more attention. The Body Mass Index (BMI), relates a person's height and weight, and is often used to determine if someone is overweight. The table below tells the weight status for a given BMI.
BMI Weight Status
Below 18.5