Hello, I need help answering this question below. aluc: 0.50 points Problem 7-18

Question

Hello,

I need help answering this question below.

aluc: 0.50 points Problem 7-18 Comparing Investment Criteria Consider the following cash flows of two mutually exclusive projects for AZ-Motorcars. Assume the discount rate for AZ-Motorcars is 8 percent. AZM AZF YearMini-SUV Full-SUV 0 $530,000 880,000 366,000 452,000 306,000 336,000 212,000 166,000 a. What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places (e.g., 32.16).) Payback period years years AZM Mini-SUV AZF Full-SUV b. What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places (e.g., 32.16).) NPV AZM Mini-SUV AZF Full-SUV c. What is the IRR for each project? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places (e.g., 32.16).) IRR AZM Mini-SUV AZF Full-SUV

Explanation / Answer

a)

b)

Best of Luck. God Bless
Please Rate Well

AZM Mini SUV Year 0 1 2 3 Cash Flow -530000 336000 212000 166000 Incremental Cash Flow= Cash Flow of Year1+ Incremental Cash Flow of Year 0 -530000 -194000 18000 184000 Pyaback Period 1.92 Excel formula(=1 -194000/212000) AZM Full SUV Year 0 1 2 3 Cash Flow -880000 336000 452000 306000 Incremental Cash Flow= Cash Flow of Year1+ Incremental Cash Flow of Year 0 -880000 -544000 -92000 214000 Payback Period 2.30 Excel formula(=1 -92000/306000)

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.