If the projects in Table 1 are mutually exclusive and the required rate of return is 10%, which of the projects is chosen by NPV?Project AProject BProject B and Project CProject A and Project BProject C

Given the internal rate of return of Project X and Project Y are 7% and 9% respectively. With a firm’s cost of capital 10%, which of the project(s) can be accepted?Group of answer choicesAccept Project X onlyReject both projectsAccept Project Y onlyAccept both projects

The table below lists four mutually exclusive projects. Which project has the lowest equivalent annual cost?Assume a 10% discount rate.  Total operating cost (PV) Project life (years)Project A 150000 8Project B 120000 7Project C 110000 6Project D 100000 5Project AProject DProject CProject B

The required rate of return from a project is 10% and the internal rate of return of the project is 12%, hence the project should be  Accepted Rejected Accepted only if NPV is also positive Rejected even if NPV is positive

Use the discount factor to find the NPV of both projects using the following table.Project/Year 0 1 2 3Project A Cash Flow -100 50 40 30Project B Cash Flow -100 30 45 50Discount factor (10%)Discounted Cash Flow of ADiscounted Cash Flow of BNPV of A (10%) =NPV of B (10%) =

Your division is considering two projects with the following net cash flows0 1 2 3Project A -$25 $5 $10 $17Project B -$20 $10 $9 $6a.What are the projects’ NPVs assuming the WACC is 5%? 10%? 15?b.What are the projects’ IRR at each of these WACCs?c.If the WACC was 5% and A and B were mutually exclusive, which project would you choose? What if the WACC was 10% and 15%? (Hint: The crossover rate is 7.81%)