chaituce

chaituce

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chaituceIndian Institute of Management - IIM Kozhikode

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Step-by-step explanation:Use Excel function FV A B C D E F Present Value 200.0...
Step-by-step explanation:Using Excel function FV A B C D E F Present Value 200...
Step-by-step explanation:Using Excel Function FV A B C D E F Present Value 200...
Step-by-step explanation: A B C D E F Present Value 200.00 4,500.00 10,000.00 ...
Step-by-step explanation:Using Excel Function FV A B C D E F Present Value 200...
Answer: $ 51.61 Million Step-by-step explanation:Use Excel Function =FV(9%,11,...
Answer: $ 3,94,379.08 Step-by-step explanation: Use Excel function =FV(11%,7,,...
Answer: Q1 ₹ 53,921.86 Q2 ₹ 58,957.93 Step-by-step explanation: Using excel fu...

Integrative- Multiple IRRS Froogle enterprises is evaluating an unusual investment project. What makes the project unusual is the stream of cash inflows and outflows shown in the following table

Year Cash flow

0 $170,000

1 -$782,000

2 $1,344,700

3 -$1,024,420

4 291,720

A) why is difficult to calculate the payback period for this project?

B) Calculate the investments net present value at each of the following discount rate0%, 5%, 10%, 15%, 30%,35%.

C.) What does your answer to part b tell you about this project’s IRR?

D) Should Froogle invest in this project if its cost of capital is 5%? What if the cost of capital is 15%?

E) in general, when faced with a project like this, how should a firm decide whether to invest in the project or reject it?

A. Why is difficult to calculate the payback period for this project?

__A) the huge amount of ash outflow in year 3 makes the calculation difficult

___B) the short life of the project makes it difficult to compute the payback period

____C) it is unreal for a project to have a cash inflow as an initial investment

___D) the oscillating cash flows make it difficult to compute the payback period

B) IF the discount rate is 0%, the investments NPV $______

IF the discount rate is 5%, the investments NPV $______

IF the discount rate is 10%, the investments NPV $______

IF the discount rate is 15%, the investments NPV $______

IF the discount rate is 20%, the investments NPV $______

IF the discount rate is 25%, the investments NPV $______

IF the discount rate is 30%, the investments NPV $______

IF the discount rate is 35%, the investments NPV $______

C) what does your answer to part b tell you about this projects IRR?

___A) there are multiple IRRs for this Project

___B) thee are infinite IRRs for this project

___C) there is no IRR for such cash Flows

___D) There is only one IRR for this project

D) should Froogle invest in this project if its cost of capital is 5%

Yes or No

should Froogle invest in this project if its cost of capital is 15%

yes or no

E) in general when faced with a project like this, how should a firm decide whether to invest in the project or reject it.

----A. it is best to use the NPV method

----B. it is best to use the IRR method

-----C it is best to use the payback period method

----D none of the methods is suitable

Answer: a) Since the cashflow streams are irregular i.e., with inflow in begin...

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