1. Thank you!! Oswego open suny edu QUESTION 9 5 points Save Answer Two mutually
following cash tows at yearo and tearq and saa year project year Calculate an incremental IRR of
project Yard on that basis decide whoh prejectis preferable appropriate hade rate eac OA
incremental IRR 5.03% so that project should be done incremental RR 621% so that project
xshould be done OC incremental IRR a 6.21% so that project Y should be done incremental IRR
-652% so that project x should be done OE incremental IRR 652% so that projectY should be
done QUESTION 10 5 points of real options facing corporations EXCEPT: All of the following
are examples Follow-on investment options Executive stock options C Flexibility options 5
points save Anwer QUESTION 11 When using IRR, MFW, or in capital budgeting cbtained A
direct estimates of the increase or decrease in shareholder value can be ane always ranked Name
B, mutually exclusive projects acoouring measures of profit D the sme value of money is taken
into acoount simple and decisions are rnanve E. the method QUESTION 12
Solution
Answer
Question 9 --- Figures are not clear --- please upload a clear image to provide solution.
10) All of the following are example of real option facing corporations EXCEPT B. Executive
Stock Option
Real Option pertains to tangible assets such as capital equipment, capital investment. It does not
include financial instruments.. Executive Stock Option is a financial instrument hence it is not a
real option.
11) When Using IRR, NPV or PI in Capital Budgeting: D. the time value of money is taken into
account
Time Value of Money is considered while evaluating the Capital Budgeting Proposals by IRR,
NPV and PI Capital Budgeting Method.