Thank you!! o.open suny.edu/webapps/assessment/take/launch,splcourse assessmentjd 22646
1&course; id 14166 I&content.id-343010; 1step-ul Rea QUESTION 6 5 points A project has
cash flows across time as follows:-190 (Yar ,20 Year 1), 40 (Year 2, 00 Year 3, 100 Year 4, 10
(Year 5 100 (Yer , 30Yar T project\'s payback is OA. 3.293 years O B.3 yeans OC.4 years
04.107 years OE. 3.700 years QUESTION 7 5 points Save Answer A company is analyzing two
mutualy exclusive projects, S and L whose cash flows are shown below. Project & -1,100 Year
1000 Year 350(Yoar s. (You may want to kep your calculation roaults for ancthar reliated
curation.) CA 20.46%: 21.83% 08.22.63%; 19.08% 0 17.10% 16.38%96 OD 20.46%: 19.08%
OE. 17.19%; 21.83%% 5 points QUESTION 8 A The presence of high levels of variable costs
creates operating leverage B None of the above is accurate conceming leverage, C. The presence
of debt creates financial leverage Operating and financial leverage may exist for firms. Which of
the folowing statements is accurate cencerring leverage? 0 D The presence of higher saios prees
creates financial leverag 0 E. The presence of cormon outy creates francial loverio. QUESTION
9 Two mulually exclusive projects offer the fellowing cash fows at year O and 1. Proect X:-240
ear 0) and s80 yeur 1) Projet Y: 30.060 ear 11.01 MacBook Pro
Solution
year cash flow discount factor
@15% amount
0 -1100 1 -1100
1 1000 0.870 870
2 350 0.756 264.6
3 50 0.658 32.9
Total npv 67.5
year cash flow discount factor
@10% amount
0 -1100 1 -1100
1 1000 0.909 909
2 350 0.826 289.1
3 50 0.751 37.55
npv 135.65
irr = LOWER RATE+LOWER RATE NPV * DIFFERENCE IN RATE
LOWER RATE NPV- HIGHER RATE NPV
= 10%+135.65/135.65-67.5*5%
PART A.
1. Thank you!! o.open suny.edu/webapps/assessment/take/launch,splcourse assessmentjd 22646
1&course; id 14166 I&content.id-343010; 1step-ul Rea QUESTION 6 5 points A project has
cash flows across time as follows:-190 (Yar ,20 Year 1), 40 (Year 2, 00 Year 3, 100 Year 4, 10
(Year 5 100 (Yer , 30Yar T project's payback is OA. 3.293 years O B.3 yeans OC.4 years
04.107 years OE. 3.700 years QUESTION 7 5 points Save Answer A company is analyzing two
mutualy exclusive projects, S and L whose cash flows are shown below. Project & -1,100 Year
1000 Year 350(Yoar s. (You may want to kep your calculation roaults for ancthar reliated
curation.) CA 20.46%: 21.83% 08.22.63%; 19.08% 0 17.10% 16.38%96 OD 20.46%: 19.08%
OE. 17.19%; 21.83%% 5 points QUESTION 8 A The presence of high levels of variable costs
creates operating leverage B None of the above is accurate conceming leverage, C. The presence
of debt creates financial leverage Operating and financial leverage may exist for firms. Which of
the folowing statements is accurate cencerring leverage? 0 D The presence of higher saios prees
creates financial leverag 0 E. The presence of cormon outy creates francial loverio. QUESTION
9 Two mulually exclusive projects offer the fellowing cash fows at year O and 1. Proect X:-240
ear 0) and s80 yeur 1) Projet Y: 30.060 ear 11.01 MacBook Pro
Solution
year cash flow discount factor
@15% amount
0 -1100 1 -1100
1 1000 0.870 870
2 350 0.756 264.6
3 50 0.658 32.9
Total npv 67.5
year cash flow discount factor
@10% amount
0 -1100 1 -1100
1 1000 0.909 909
2 350 0.826 289.1
3 50 0.751 37.55
npv 135.65
irr = LOWER RATE+LOWER RATE NPV * DIFFERENCE IN RATE
LOWER RATE NPV- HIGHER RATE NPV
= 10%+135.65/135.65-67.5*5%
