Required rate of return on these projects

Related BrainMass Solutions

• Ranking by the Internal Rate of Return Method

  The company has a minimum required internal rate of return of 13%. Screen and rank the eight capital investment projects using the internal rate of return.

• Risk-adjusted NPV for G. Wolfe Corporation

  On a risk adjusted basis, Project A is a replacement project and so the required rate of return will be 12% ( as the chart above). Project B is project unrelated to current operations and so the required rate of return will be 18%.

• Evaluating projects: market risk and decision making

  rate)=r(1-40%)= r(1-0.4)= 5.58% WACC (weighted avaerage cost of capital)=D/V * r (1-Tax rate)+ E/ V * return on equity Project D/V r (1-Tax rate) E/V required return on equity WACC Leisure 40% 5.58% 60% 22.44 % 15.70% =40.%*5.58%

• Different Capital Budgeting Methods

  company's required rate of return on its capital.

• Caledonia is considering two mutually exclusive projects

  0 5 32,000 $200,000 The required rate of return on these projects is 11 percent Formulate answers and show all work A.

• Project's payback period;net present value

  5 32,000 $200,000 The required rate of return on these projects is 11 percent.

• Common Stock, Coupon Rate, Dividends Questions

  s required rate of return for these projects is 10%. The net present value for Project B is: Zellars, Inc. is considering two mutually exclusive projects, A and B.

• Choosing a Project Based on ROR, Payback, NPV, etc.

  The cash flows associated with these projects are as follows: YEAR PROJECT A PROJECT B 0 -$100,000 -$100,000 1 32,000 0 2 32,000 0 3 32,000 0 4 32,000 0 5 32,000 $200,000 The required rate of return on these projects is 11 percent. 1.

• Investment in a security, Risk-adjusted net present value

  Wolfe Corporation uses the risk-adjusted discount rate method and groups projects according to purpose, and then it uses a required rate of return or discount rate that has been preassigned to that purpose or risk class.