Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Table 1 t A B C D 0 (13,900,000 ) (18,500,000) (10,500,000) (16,500,000 ) 1 5,17

ID: 2621350 • Letter: T

Question

Table 1

t                         A                       B                          C                            D

0                (13,900,000 )       (18,500,000)        (10,500,000)         (16,500,000 )

1                   5,170,000            3,700,000             2,690,000              3,400,000

2                   5,170,000            7,900,000             3,870,000              5,900,000

3                   5,170,000            7,250,000             4,760,000              6,800,000

4                   5,170,000            6,500,000             3,870,000              6,800,000

Risk                    High                Average                 Low                     Average

I/ Y                    12.03%               9.03%                 6.53%                   9.03

1. What is the NPV, IRR and MIRR for A,B,C &D?

2. Which of the projects are unacceptable and why?

3. Rank the projects that are acceptable, according to Mark

Explanation / Answer



A B C D NPV $1,793,180 $1,732,583 $2,377,297 $1,640,093 IRR 18.03% 12.93% 15.47% 13.03% MIRR 15.48% 11.50% 12.11% 11.64%