For each of the projects shown in the following table, calculate the internal rate of return (IRR). Then indicate, for each project, the maximum cost of capital that the firm could have and still find the IRR acceptable.

Project A Project B Project C Project D
Initial investment (CF0): $90,000 $490,000 $20,000 $240,000

There is no data for year 5 for Projects B and D. Need NPV and IRR for all if possible, please.

Problem 2:

Long-term investment decision, IRR method Billy and Mandy Jones have $25,000 to invest. On average, they do not make any investment that will not return at least 7.5% per year. They have been approached with an investment opportunity that requires $25,000 upfront and has a payout of $6,000 at the end of each of the next 5 years. Using the internal rate of return (IRR) method and their requirements, determine whether Billy and Mandy should undertake the investment.

Use Attached NPV IRR spreadsheet. Both problems should be on one page of one excel spreadsheet.

Which of the following statements is incorrect?
a. Assuming a project has normal cash flows, the NPV will be positive if the IRR is less than the cost of capital.
b. If the multiple IRR problem does not exist, any independent project acceptable by the NPV method will also be acceptable by the IRR method.
c. If IRR = k

XYZ Co. is considering a major expansion of its product line and has estimated the following cash flows associated with such an expansion. The initial investment would be $2,500,000 and the project would generate incremental cash flows of $750,000 per year for six years. The cost of capital is 11 percent. Calculate the followin

A firm has the following investment opportunities:
Investment
NPV
IRR
Project A
Investment $150,000
NPV $30,000
IRR 14%
Project B
Investment $120,000
NPV $20,000
IRR 13%
Project C
Investment $100,000
NPV $25,000
IRR 12%
Project D
Investment $ 10,000
NPV $ 6,000
IRR 11%
If

Fast Track Bikes, Inc., is thinking of developing a new composite road bike. Development will take six years and the cost is $200,000 per year. Once in production, the bike is expected to make $300,000 per year for 10 years.
a. Assume the cost of capital is 10%.
i. Calculate the NPV of this investment opportunity. Shou

A. Calculate the NPV and IRR for each project. The company's WACC is 10%.
b. Assume only one percent can be undertakeen. Which project would you recommend and why would you?

The projected cash flows for two mutually exclusive projects are as follows:
Year Project A Project B
0 ($150,000) ($150,000)
1 0 50,000
2 0 50,000
3 0 50,000
4 0 50,000
5 250,000

I need help in understanding the cost of capital and how to figure it. Calculate the values for each project using the time value table- the cost of capital is 12%
1. NPV
2. IRR
3. Profitability index
4.Payback Period
Year Project A Project B
0 $-30,000 $-60,000
1 $ 10,000 $20,000
2 $ 10,000 $20,000
3 $ 10,000 $20,

Problem 1
A firm has a capital structure which consists of 30% debt and 70% equity. The cost of debt is 10% and the cost of equity is 15%. Find the cost of capital if the firm's tax rate is 34%.
Problem 2
A firm is evaluating a project with the following cash flows:
Year0 = (100,000)
Year1 = 26,000
Year2 =

Please view attachment for question.
a. Calculate the NPV,IRR, Profitability Index, and MIRR for this project with a cost of capital of 12%.
(see attached)
b.For a single conventional project, the NPV and IRR will agree on whether to invest or to not invest. However, in the case of two mutually exclusive projects, th