100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
FIN 125 Exam 2_ Chapter 9 Problems SNCOA TEST 2) QUESTIONS WITH COMPLETE ANSWERS!!_.pdf $8.99   Add to cart

Exam (elaborations)

FIN 125 Exam 2_ Chapter 9 Problems SNCOA TEST 2) QUESTIONS WITH COMPLETE ANSWERS!!_.pdf

 0 view  0 purchase
  • Course
  • GED - General Educational Development
  • Institution
  • GED - General Educational Development

FIN 125 Exam 2_ Chapter 9 Problems SNCOA TEST 2) QUESTIONS WITH COMPLETE ANSWERS!!_.pdf

Preview 1 out of 4  pages

  • August 20, 2024
  • 4
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • GED - General Educational Development
  • GED - General Educational Development
avatar-seller
Denyss
8/21/24, 2:59 AM



FIN 125 Exam 2: Chapter 9 Problems
Jeremiah




Practice questions for this set


Learn 1 /7 Study with Learn




Add each of the future cash flows to the cost until the next cash flow will overflow it.


Take the remaining, divide it by the next cash flow, and add the count of cash flows
before it.


The payback period for project A: 25,700+53,700+58,000=136,700 (recover
w/o going over the cost)
The payback period for project A: 3 + (218,917-136,700)/420,000 = 3.20



Choose matching term




Year Cash Flow (A) Cash Flow (B)
0 -$218,917 -$16,419
1 25,700 5,985
2 53,000 8,370
1
3 58,000 13,931
4 420,000 8,655
Whichever project you choose, if any, you require a 6 percent return on your investment. What is the
IRR (in %) for Project A?




You are considering two mutually exclusive projects. Project A has cash flows of −$125,000, $51,400,
$52,900, and $63,300 for Years 0 to 3, respectively. Project B has cash flows of −$85,000, $23,100,
2 $28,200, and $69,800 for Years 0 to 3, respectively. Project A has a required return of 9 percent while
Project B's required return is 11 percent. Should you accept or reject these mutually exclusive projects
based on IRR analysis?
FIN 125 Exam 2: Chapter 9 Problems




1/4

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller Denyss. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $8.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

79271 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$8.99
  • (0)
  Add to cart