Nautilus Company is going to make an investment of $700,000 in a machine and the following are the cash flows that two different products would bring in years one through four. The company's required...


Nautilus Company is going to make an investment of $700,000 in a machine and the following are the cash flows that two different products would bring in years one through four. The company's required rate of return is 12%.


























Option A

Option B
$245,000

$225,000



$195,000


$275,000

$295,000


$250,000

$245,000


$225,000

Using the appropriate EXCEL spreadsheet in the Chapter11 NPV IRR Analysis.xlsx  download, answer the following questions:



  1. What is the NPV for Option A?

  2. What is the NPV for Option B?

  3. What is the IRR for Option A?

  4. What is the IRR for Option B?



PLEASE NOTE #1: The dollar amounts will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67). Round your IRR answers, in percentage format, to two decimal places (i.e. 12.34%).


5. Given the above answers, which project should the company invest in? Project  .



PLEASE NOTE #2: Your answer is either "A" or "B" - capital letter, no quotes.



Jun 06, 2022
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