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Author Question: Yonan Inc. is considering Projects S and L, whose cash flows are shown below. These projects are ... (Read 99 times)

Caileynorton

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Question 1

With respect to the required level of capital budget analysis, _____would likely require the least level of investigation while ____ would likely require the greatest level of analysis.
1.contraction decisions
2.merger decisions
3.replacement needs to continue profitable operations
4.expansion into existing products or markets

4,1


3,1


3,2


4,2



Question 2

Yonan Inc. is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. If the decision is made by choosing the project with the shorter payback, some value may be foregone. How much value will be lost in this instance? Note that under some conditions choosing projects on the basis of the shorter payback will not cause value to be lost.

WACC:9%    
 

0

1

2

3

4

CFS

–$1,200

$600

$900

$0

$0

CFL

–$2,400

$900

$800

$400

$1,000


$18.36


$10.42


$13.79


$15.16



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Marked as best answer by Caileynorton on Aug 7, 2023

nikspatel037

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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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Caileynorton

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


Laurenleakan

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Reply 3 on: Yesterday
Excellent

 

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