Can U Use Jc Penney Card At Salon I Need Some Help To Get Extra Points In The Exam, Can U Help? (2nd Part)?

I need some help to get extra points in the exam, can u help? (2nd part)? - can u use jc penney card at salon

4 - The following two mutually exclusive projects are implemented by the GCC test:

Year Project A Project B

0 -30,000 -60,000

1 10,000 20,000

2 10,000 20,000

3 10,000 20,000

4 10,000 20,000

5 10,000 20,000

The cost of capital is 14%

Calculate the following values for each project, using the tables of values:

1 - VPN
2 - Performance Index
3 - payback time
4 - Which project is approved, and why?

5 - The table below shows the betas for several companies. Calculation of each index the expected return of stocks with the CAPM. Supposerisk-free rate is 5%. Use a risk premium of 9% for the market portfolio.

Company Beta

2.03 Sams
Walmart 1.36
JC Penney 40
84 Costco

2 comments:

capwest5... said...

Question 4:

VAN: (A) $ 4,330 (B) 8660 $

Profitability Index (A) 0144 (B) 0.144

Payback time: (A) 3 years (b) 3 years

Since the rate of return and repayment period are the same for both projects, but project B has a higher net present value of Project B is the preferred option.

jeterdud... said...

OO

I had exactly the same question in the 8th Class ..

has not yet been attempted, even xD

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