Question
In: Finance
Compute the NPV for Project M if the appropriate cost of capital is 9 percent. (Negative...
Compute the NPV for Project M if the appropriate cost of capital is 9 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.)
| Project M | ||||||
| Time: | 0 | 1 | 2 | 3 | 4 | 5 |
| Cash flow: | –$1,200 | $390 | $520 | $560 | $640 | $140 |
NPV?
Should it be accepted or rejected
Solutions
Expert Solution
| Year | Cash flow | Discount factor | Present value | |||
| a | b | c=1.09^-a | d=b*c | |||
| 0 | $ -1,200 | 1.0000 | $ -1,200.00 | |||
| 1 | $ 390 | 0.9174 | $ 357.80 | |||
| 2 | $ 520 | 0.8417 | $ 437.67 | |||
| 3 | $ 560 | 0.7722 | $ 432.42 | |||
| 4 | $ 640 | 0.7084 | $ 453.39 | |||
| 5 | $ 140 | 0.6499 | $ 90.99 | |||
| NPV | $ 572.28 | |||||
| The project should be accepted because it has positive NPV. | ||||||
jeff jeffy answered 1 year agoRelated Solutions
Compute the NPV for Project M if the appropriate cost of capital is 9 percent. (Negative...
Compute the NPV for Project M if the appropriate cost of capital
is 9 percent. (Negative amount should be indicated by a
minus sign. Do not round intermediate calculations and round your
final answer to 2 decimal places.)
Should the project be accepted or rejected?
Project M
Time:
0
1
2
3
4
5
Cash flow:
–$1,500
$450
$580
$620
$700
$200
How do you come up with the NPV?
And Should the project be accepted or rejected?
Compute the NPV for Project M if the appropriate cost of capital is 9 percent. (Negative...
Compute the NPV for Project M if the appropriate cost of capital
is 9 percent. (Negative amount should be indicated by a minus sign.
Do not round intermediate calculations and round your final answer
to 2 decimal places.)
Project M Time: 0 1 2 3 4 5 Cash flow: –$1,800 $510 $640 $680
$760 $260
Compute the NPV for Project M if the appropriate cost of capital is 7 percent. (Negative...
Compute the NPV for Project M if the appropriate cost of capital
is 7 percent. (Negative amount should be indicated by a
minus sign. Do not round intermediate calculations and round your
final answer to 2 decimal places.)
Project M
Time:
0
1
2
3
4
5
Cash flow
–$2,000
$550
$680
$720
$800
$300
NPV
$
Should the project be accepted
or rejected?
Accepted
Rejected
Compute the NPV for Project K if the appropriate cost of capital is 7 percent. (Negative...
Compute the NPV for
Project K if the appropriate cost of capital is 7 percent.
(Negative amount should be indicated by a minus
sign. Do not round intermediate calculations and
round your final answer to 2 decimal places.)
Project K
Time:
0
1
2
3
4
5
Cash flow:
−$11,600
$5,800
$6,800
$6,800
$5,800
−$14,600
Should the project be accepted or rejected?
rejected
accepted
Compute the NPV for Project M if the appropriate cost of capitalis 8 percent. (Negative...
Compute the NPV for Project M if the appropriate cost of capital
is 8 percent. (Negative amount should be indicated by a
minus sign. Do not round intermediate calculations and round your
final answer to 2 decimal places.)Project MTime:012345Cash flow:–$2,900$650$780$820$900$400NPV:Should the project be accepted or rejected?rejectedaccepted
Compute the NPV statistic for Project U if the appropriate cost of capital is 9 percent....
Compute the NPV statistic for Project U if the appropriate cost
of capital is 9 percent. (Negative amount should be
indicated by a minus sign. Do not round intermediate calculations
and round your final answer to 2 decimal places.)
Project U
Time:
0
1
2
3
4
5
Cash
flow
–$1,050
$370
$1,530
–$530
$320
–$110
Compute the NPV statistic for Project Y if the appropriate cost of capital is 12 percent....
Compute the NPV statistic for Project Y if the appropriate cost
of capital is 12 percent. (Negative amount should be
indicated by a minus sign. Do not round
intermediate calculations and round your final answer to 2 decimal
places.)
Project Y
Time:
0
1
2
3
4
Cash flow:
–$9,200
$3,590
$4,420
$1,760
$540
NPV:
Should the project be accepted or rejected?
accepted
rejected
Compute the NPV statistic for Project Y if the appropriate cost of capital is 11 percent....
Compute the NPV statistic for Project Y if the appropriate cost
of capital is 11 percent. (Negative amount should be
indicated by a minus sign. Do not round
intermediate calculations and round your final answer to 2 decimal
places.)
Project Y
Time:
0
1
2
3
4
Cash flow:
–$8,100
$3,370
$4,200
$1,540
$320
Compute the NPV statistic for Project U if the appropriate cost of capital is 10 percent....
Compute the NPV statistic for Project U if the appropriate cost
of capital is 10 percent. (Do not round intermediate
calculations and round your final answer to 2 decimal
places.)
Project U
Time:
0
1
2
3
4
5
Cash flow:
–$1,000
$350
$1,480
–$520
$300
–$100
show how to do this in excel and the excel formulas
You have to show what the excel formulas are pls
Compute the NPV statistic for Project Y if the appropriate cost of capital is 11 percent....
Compute the NPV statistic for Project Y if the appropriate cost
of capital is 11 percent. (Negative amount should be
indicated by a minus sign. Do not round
intermediate calculations and round your final answer to 2 decimal
places.)
Project Y
Time:
0
1
2
3
4
Cash flow:
–$8,300
$3,690
$4,520
$1,860
$640
Should the project be accepted or rejected?
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