problem1.) Genuine Produces Inc. needs a new machine. Two companies have submitted bids, and you have been allocated the task of choosing one machine. Cash flows analysis points to the following:
Year Machine A Machine B
0 -2,000 -2,000
1 0 832
2 0 832
3 0 832
4 3,877 832
What is the IRR for each machine?
a. IRR= 16%; IRR=20%
b. IRR= 24%; IRR=20 %
c. IRR = 18%; IRR= 16%
d. IRR= 18%; IRR=24%
e. IRR= 24%; IRR =26%
problem2.) What is the current equilibrium stock price
a. $5.00
b. $8.75
c. $9.57
d. $12.43
e. $15.00
problem3.) What will club's stock price be at the end of the first year
a. $5.00
b. $8.76
c. $9.56
d. $12.43
e. $15.00