This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
Unformatted text preview: NCF 1119 = $28,300 NCF 20 = $351,896 NPV = $18,899.17 (using a financial calculator) Yes, because NPV > 0 b. NPV = $2,240.65 (using a financial calculator) No, because NPV < 0 80 Chapter 11 – Capital Budgeting Decision Criteria and Risk Analysis . 13. a. NPV A = $4,331 NPV B = $8,662 b. IRR A = 19.86% IRR B = 19.86% c. PI A = 1.14 PI B = 1.14 d. PB A = 3 years PB B = 3 years e. Wang should accept project B because its NPV is positive and higher than the NPV of project A. A will add more to shareholder wealth than B. 15. a. NPV = $250,762 b. The project is unacceptable since NPV < 0. . c. IRR = 6.64% (using a financial calculator) 22. a. NPV = $1,803 (by financial calculator) b. IRR = 12.77% (by financial calculator) c. PI = 1.020 (by calculator) d. The project should be accepted since its NPV is positive. 81...
View
Full
Document
This note was uploaded on 08/22/2009 for the course FIN 3310 taught by Professor Potts during the Spring '08 term at Baylor.
 Spring '08
 Potts

Click to edit the document details