Business, 26.06.2019 22:20 isabelleecurtis

Consider the following two mutually exclusive projects:
year cash flow (a) cash flow (b)
0 - $ 348,000 - $ 51,000
1 47,000 24,200
2 67,000 22,200
3 67,000 19,700
4 442,000 14,800
whichever project you choose, if any, you require a return of 14 percent on your investment. (a) what is the payback period for each project? (b) what is the npv for each project? (do not round intermediate calculations. round your answers to 2 decimal places (e. g., 32. (c) what is the irr for each project? (do not round intermediate calculations. enter your answers as a percentage rounded to 2 decimal places (e. g., 32. (d) what is the profitability index for each project? (do not round intermediate calculations. round your answers to 3 decimal places (e. g., 32. (e) based on your answers in (a) through (d), which project will you finally choose?

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Answer from: Quest

The answer is true a pertinent question is an appropriate question.

Answer from: Quest

muslims control the north africa during the period of 1500 up

to 1800. they made a barrier to prevent further european exploration from

entering the africa from the north. however, the dutch ware still able to move

toward the interior with having south africa as one of the routes leading to

the east for trading with asia.

Answer from: Quest

answer(b) partnership';

Answer from: Quest

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans.

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.

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Consider the following two mutually exclusive projects:
year cash flow (a) cash flow (b)

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