Question

In: Finance

You are considering a project with cash flows of $1,200, $2,800, $2,300, $1,600, at the end...

You are considering a project with cash flows of $1,200, $2,800, $2,300, $1,600, at the end of each year for the next four years. What is the present value of these cash flows , given a discount rate of 15% ? (Round answers to two decimals with any characters such as $, or , for example: 1234.56 )

Solutions

Expert Solution

Year Cashflows Present Value of Cashflows
1 $ 1,200.00 $                                     1,043.48
2 $ 2,800.00 $                                     2,117.20
3 $ 2,300.00 $                                     1,512.29
4 $ 1,600.00 $                                         914.81
Present Value $                                     5,587.77
Rate of Interest 15%

Related Solutions

A project that costs $2,800 to install will provide annual cash flows of $630 for the...
A project that costs $2,800 to install will provide annual cash flows of $630 for the next 6 years. The firm accepts projects with payback periods of less than 4 years. a-1. What is this project's payback period? (Round your answer to 3 decimal places.)   Payback period years a-2. Will the project be accepted? No Yes b-1. What is project NPV if the discount rate is 2%? (Do not round intermediate calculations. Round your answer to 2 decimal places.)   NPV...
You are considering a project with the following cash​ flows: YEAR                      PROJECT CASH FLOW    ...
You are considering a project with the following cash​ flows: YEAR                      PROJECT CASH FLOW     0                         -60,000     1                         25,000     2                         25,000     3                         25,000     4                         25,000 If the appropriate discount rate is 11 ​percent, what is the​ project's discounted payback​ period in years?
A project that will provde annual cash flows of $2,800 for nine years costs $9,200 today....
A project that will provde annual cash flows of $2,800 for nine years costs $9,200 today. a. At a required return of 11 percent, what is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. At a required return of 27 percent, what is the NPV of the project? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer...
​(Discounted payback period​) You are considering a project with the following cash​ flows: YEAR   PROJECT CASH...
​(Discounted payback period​) You are considering a project with the following cash​ flows: YEAR   PROJECT CASH FLOW 0   -40,000 1   15,000 2   15,000 3   15,000 4   15,000 If the appropriate discount rate is 12 ​percent, what is the​ project's discounted payback​ period? The​ project's discounted payback period is ___ years.  ​(Round to two decimal​ places.)
You are considering a project with an initial cash outlay of ​$72,000 and expected cash flows...
You are considering a project with an initial cash outlay of ​$72,000 and expected cash flows of ​$22,320 at the end of each year for six years. The discount rate for this project is 10.5 percent. a.  What are the​ project's payback and discounted payback​ periods? b.  What is the​ project's NPV? c.  What is the​ project's PI? d.  What is the​ project's IRR? a.  The payback period of the project is nothing years.
You are considering a project with an initial cash outlay of ​$87000 and expected cash flows...
You are considering a project with an initial cash outlay of ​$87000 and expected cash flows of ​$23490 at the end of each year for six years. The discount rate for this project is 10.1 percent. a. What are the​ project's payback and discounted payback​ periods? b. What is the​ project's NPV? c. What is the​ project's PI? d. What is the​ project's IRR?
Consider the following information: Cash Flows ($) Project C0 C1 C2 C3 C4 A –6,300 2,300...
Consider the following information: Cash Flows ($) Project C0 C1 C2 C3 C4 A –6,300 2,300 2,300 2,000 0 B –1,600 0 1,000 3,300 4,300 C –3,700 2,300 1,000 1,800 1,300 a. What is the payback period on each of the above projects? (Round your answers to 2 decimal places.) Project Payback Period A year(s) B year(s) C year(s) b. Given that you wish to use the payback rule with a cutoff period of two years, which projects would you...
Consider the following projects: Cash Flows ($) Project C0 C1 C2 C3 C4 C5 A −2,800...
Consider the following projects: Cash Flows ($) Project C0 C1 C2 C3 C4 C5 A −2,800 2,800 0 0 0 0 B −5,600 2,800 2,800 5,800 2,800 2,800 C −7,000 2,800 2,500 0 2,800 2,800 If the opportunity cost of capital is 12%, which project(s) have a positive NPV? Positive NPV Projects Calculate the payback period for each project. Project A years Project B    years Project C    years Which project(s) would a firm using the payback rule accept...
Suppose you are considering a project that will generate quarterly cash flows of $16429 at the...
Suppose you are considering a project that will generate quarterly cash flows of $16429 at the beginning of each quarter for the next 12 years. If the appropriate discount rate for this project is 12%, how much is this project worth today? Round to the nearest cent.
Suppose you are considering a project that will generate quarterly cash flows of $17143 at the...
Suppose you are considering a project that will generate quarterly cash flows of $17143 at the beginning of each quarter for the next 11 years. If the appropriate discount rate for this project is 13%, how much is this project worth today? Round to the nearest cent.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT