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Author Question: Garvin Enterprises is considering a project that has the following cash flow and WACC data. What is ... (Read 61 times)

petersan

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on: Aug 7, 2023

Question 1

Flint Fruits is considering two equally risky, mutually exclusive projects, Projects A and B, that have the following cash flows:

Year

Project A

Project B

0

–$130,000

–$130,000

1

52,000

40,000

2

40,000

25,000

3

80,000

93,000

4

50,000

71,000

At what WACC would the two projects have the same NPV?


◦

10.06%


◦

10.73%


◦

11.21%


◦

11.82%



Question 2

Garvin Enterprises is considering a project that has the following cash flow and WACC data. What is the project’s discounted payback?

WACC:10.00%   
Year:

0

1

2

3

Cash flows:

–$1,300

$600

$600

$600


◦

2.01 years


◦

2.14 years


◦

2.38 years


◦

2.57 years

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by petersan on Aug 7, 2023

3ginamay

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Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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petersan

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Reply 2 on: Aug 7, 2023
YES! Correct, THANKS for helping me on my review

raenoj

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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