Question
In: Finance
Question N1 - XYZ is considering a 3-yr project. The initial outlay is $120,000, annual cash...
Question N1 - XYZ is considering a 3-yr project. The initial outlay is $120,000, annual cash flow is $50,000 and the terminal cash flow is $10,000. The required rate of return (cost of capital) is 15%. The net present value is $736.42. What if the annual cash flow increases to $57,000 instead? Re-calculate the NPV.
Question N2 - Six years ago, XYZ Company invested $51,959 in a new machinery. The investment in net working capital was $4,716 which would be recovered at the end of the project. Today, XYZ Company is selling the machinery for $24,092. Today, the book value of the machinery is $11,215. The tax rate is 26 percent. What are the terminal cash flows in Year 6?
Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box
Solutions
jeff jeffy answered 4 months agoRelated Solutions
XYZ is considering a 3-yr project. The initial outlay is $120,000, annual cash flow is $50,000...
XYZ is considering a 3-yr project. The initial outlay is
$120,000, annual cash flow is $50,000 and the terminal cash flow is
$10,000. The required rate of return (cost of capital) is 15%. The
net present value is $736.42. What if the required rate of return
is 9% instead? Re-calculate the NPV.
XYZ is considering a 3-yr project. The initial outlay is -$120,000, annual cash flow is $50,000...
XYZ is considering a 3-yr project. The initial outlay is
-$120,000, annual cash flow is $50,000 and the terminal cash flow
is $10,000. The required rate of return (cost of capital) is 15%.
The net present value is $736.42. What if the annual cash flow
increases to $54,000 instead? Re-calculate the NPV.
A project has an initial outlay of $2,378. The project will generate annual cash flows of...
A project has an initial outlay of $2,378. The project will
generate annual cash flows of $660 over the 4-year life of the
project and terminal cash flows of $202 in the last year of the
project. If the required rate of return on the project is 13%, what
is the net present value (NPV) of the project?
Note: Enter your answer rounded off to two decimal points. Do
not enter $ or comma in the answer box.
If Company XYZ plans to invest in a project with initial capital outlay $52,125, annual net...
If Company XYZ plans to invest in a project with initial capital
outlay $52,125, annual net cash inflow $12,000 for 8 years, and
discount rate 12%, what is the Company XYZ’s NPA, IRR, MIRR,
Payback period, and Discounted Payback Period?
You are considering a project with an initial cash outlay of $70,000 and expected free cash...
You are considering a project with an initial cash outlay of
$70,000 and expected free cash flows of $28,000 at the end of
each year for 7 years. The required rate of return for this project
is 6 percent.
a. What is the project's payback period?
b. What is the project's NPV?
c. What is the project's PI?
d. What is the project's IRR?
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 $85,000 and expected free cash...
You are considering a project with an initial cash outlay of
$85,000 and expected free cash flows of $20,000 at the end of each
year for 5 years. The required rate of return for this project is 9
percent.
a. What is the project's payback period?
b. What is the project's
NPV?
c. What is the project's
PI?
d. What is the project's
IRR?
a. The project's payback period is
_____years. (Round to two decimal places.)
b. The project's NPV...
You are considering a project with an initial cash outlay of $75,000 and expected free cash...
You are considering a project with an initial cash outlay of
$75,000 and expected free cash flows of $22,000 at the end of
each year for 6 years. The required rate of return for this project
is 8 percent. What is the project's NPV? What is the project's
PI? What is the project's IRR?
You are considering a project with an initial cash outlay of $70,000 and expected free cash...
You are considering a project with an initial cash outlay of
$70,000
and expected free cash flows of $15,500
at the end of each year for
5
years. The required rate of return for this project is
5.5
percent.
a)
(5 pts)
What is the payback period of the
project?
b)
(5 pts)
What is the project’s NPV?
c)
(5 pts)
What is the project’s IRR?
d)
(5 pts)
If your firm has a required payback of
5years
and passing...
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?
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Please explain your view of the most difficult aspect of Customs Compliance?
- You are required to write an interactive program that prompts the user for seven (7) real...
- Describe in detail the five-forces model of industry competition. What causes each of the forces to...
- Java Programming. I'm writing this in an IDE called Eclipse. If you could also use comments...
- Scenario: You are a departmental manager in a large community hospital in an urban area. Your...
- Need to answer the following 3 questions from "The Sixties, AMerican Yawp" (just google, you will...
- Write a c++ program to load two column of numbers, do arithmetic operations to the data...
ADVERTISEMENT