B the firm uses the following equation to determine

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b. The firm uses the following equation to determine the risk-adjustediscount rate, RADRj, for each projectj:
Project (j)c. Use the RADR for each project to determine its risk-adjusted NPV. project is preferable in this situation?Project (j)
d. Compare and discuss your findings in parts a and c.Which projectyou recommend that the firm accept?
10/10 points. The w and risk cost ed its Which rable t do ble, the a better ndex for
ProjectPVA$ 300,000.00 $ 84,000.00 $ 384,000.00 B$ 200,000.00 $ 10,000.00 $ 210,000.00 C$ 100,000.00 $ 25,000.00 $ 125,000.00 D$ 900,000.00 $ 90,000.00 $ 990,000.00 E$ 500,000.00 $ 70,000.00 $ 570,000.00 F$ 100,000.00 $ 50,000.00 $ 150,000.00 G$ 800,000.00 $ 160,000.00 $ 960,000.00 a. Calculate the present value of cash inflows associated with eachA firm with a 13% cost of capital must select the optimal group of projects from those shown in the following table, given its capital budget of $1 million.Initial investmentNPV at 13% cost of capital
b. Select the optimal group of projects, keeping in mind that unuseyielding the highest present value.CD$ 1,000,000.00 $ 115,000.00 $ 1,115,000.00 DF$ 1,000,000.00 $ 140,000.00 $ 1,140,000.00 BG$ 1,000,000.00 $ 170,000.00 $ 1,170,000.00 ABE$ 1,000,000.00 $ 164,000.00 $ 1,164,000.00 CFG$ 1,000,000.00 $ 235,000.00 $ 1,235,000.00
Capital rationing: NPV approachA firm with a 13% cost of capital must select the optimal group of projects from those shown in the following table, given its capital budget of $1 million.Initial investmentNPV at 13% cost of capitalThe firm should choose Projects C,F, and G using all of their $1 million budget yielding the highest present value.
project.ed funds are costly.
10/10 points

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