You have two mutually exclusive projects. Both projects require initial investment of $20 million. Project 1 generated $4 million per year in perpetuity.Project 2 generated $3 million at the end of the first year and its revenue will grow 3% per year thereafter.The cash flows of both projects start at the end of the first year. <a> IRR<b> NPV, assume the cost of capital is 6%

There are two projects: project A and project B. Each of the project has the cost of Rs 100,000 and cost of capital for each project is 12 percent. The project's expected net cash flows are as follows: Year Project A Project B 0 Rs (100,000) Rs (100,000) 1 65,000 35,000 2 30,000 30,000 3 30,000 30,000 4 10,000 10,000 a. Calculate NPV for each project. Which project or projects should be accepted if they are independent? b. Calculate IRR for each project. Which project should be accepted if they are mutually exclusive?

NPV Calculate the net present value (NPV) for the following 20-year projects.Comment on the acceptability of each. Assume that the firm has an opportunity costof 14%.a. Initial investment is $10,000; cash inflows are $2,000 per year.b. Initial investment is $25,000; cash inflows are $3,000 per year.c. Initial investment is $30,000; cash inflows are $5,000 per year.

Calculate the NPV of a $100,000 investment project with cash inflows of $30,000 in year 1, $50,000 in year 2, and $80,000 in year 3, 120,000 in year 4. The cost of capita is 7%

What is the NPV of a 6-year project that costs $100,000, has annual revenues of $50,000 and costs of $15,000? Assume the investment can be depreciated for tax purposes straight-line over 6 years, the corporate tax rate is 21%, and the discount rate is 14%.Question 4

Your boss the chief financial officer (CFO) asked you to analyse 3 different projects under consideration by the company's board. All projects require an initial investment and then provide a perpetuity of cash flows with zero growth. All are equally risky with the same 10% pa required return. All figures are rounded to 4 decimal places. The projects can all be accepted and funded, they're not mutually exclusive.The projects' initial costs and perpetual annual cash flows were provided by the engineering and marketing departments and are believed to be accurate. You calculated the NPV's and IRR's in bold, and made some conclusions about which projects to accept or reject (stated in answer option d). The CFO thanked you for your swift work, but said there's just one thing wrong with your calculations or conclusions, and asked you to fix it up before the table and conclusions are shown at the board meeting tomorrow.Projects with 10% pa required return  Initial cashflow at t=0 Perpetual annualcash flow from t=1 NPV IRR  ($m) ($m) ($m) (% pa)Project A -40 16 (a) 120 40Project B -1,200 80 -400 (b) 6.6667Project C -26,000 1,400 -12,000 (c) 6.698  Which one of the following calculations or conclusions is NOT correct?Question 7Select one:a.$120 million is project A's NPV.b.6.6667% pa is project B's IRR.c.6.698% pa is project C's IRR.d.Accept project A but reject projects B and C.