Page 1 of 1
1. Consider the projects below: (15 points) Project 0 1 2 3 1 2 $75,000 3 ($200,000) $50,000 ($250,000 $675,000 ($225,00
Posted: Sun Jul 03, 2022 12:52 pm
by answerhappygod

- 1 Consider The Projects Below 15 Points Project 0 1 2 3 1 2 75 000 3 200 000 50 000 250 000 675 000 225 00 1 (17.62 KiB) Viewed 12 times

- 1 Consider The Projects Below 15 Points Project 0 1 2 3 1 2 75 000 3 200 000 50 000 250 000 675 000 225 00 2 (22.73 KiB) Viewed 12 times
1. Consider the projects below: (15 points) Project 0 1 2 3 1 2 $75,000 3 ($200,000) $50,000 ($250,000 $675,000 ($225,000) ($250,000) $500,000 ($300,000) ($200,000) ($100,000) $125,000 Estimate the IRR for each project (12 points), what project should you choose if cost of capital is 7% (3 points)?
5. The required time, cost, and likelihood of success for each step of the project is below (15 points). Technology Fabric Engine Fuel Cost $30 million $80 million $60 million Time 6 months 1 year 2 years Probability of Success 80% 1-PV(success) PV (investment) 30% 25% The risk-free rate is 5%. Use equation below to rank the stages of Matthews' rocket-propelled skateboard project: