In: Accounting
Project L costs $35,000, its expected cash inflows are $13,000 per year for 11 years, and its WACC is 14%. What is the project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations.
Project L costs $65,631.23, its expected cash inflows are $13,000 per year for 11 years, and its WACC is 10%. What is the project's IRR? Round your answer to two decimal places.
Project L costs $75,000, its expected cash inflows are $9,000 per year for 8 years, and its WACC is 13%. What is the project's MIRR? Round your answer to two decimal places. Do not round your intermediate calculations.
Project L costs $60,000, its expected cash inflows are $15,000 per year for 9 years, and its WACC is 11%. What is the project's payback? Round your answer to two decimal places.
Project L costs $30,000, its expected cash inflows are $8,000 per year for 8 years, and its WACC is 10%. What is the project's discounted payback? Round your answer to two decimal places.
These are 5 different questions having 5 difference concepts, hence I am solving first question:
Question 1 - Project L costs $35,000, its expected cash inflows are $13,000 per year for 11 years, and its WACC is 14%. What is the project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations.
Year |
Cash Flows (A) |
PV factor @ WACC 14% (B) |
Present Value of Cash Flow (A*B) |
|
0 |
Initial Cost |
($35,000) |
1 |
($35,000.00) |
1 |
Annual Cash Inflows |
$13,000 |
0.877192982 |
$11,403.51 |
2 |
Annual Cash Inflows |
$13,000 |
0.769467528 |
$10,003.08 |
3 |
Annual Cash Inflows |
$13,000 |
0.674971516 |
$8,774.63 |
4 |
Annual Cash Inflows |
$13,000 |
0.592080277 |
$7,697.04 |
5 |
Annual Cash Inflows |
$13,000 |
0.519368664 |
$6,751.79 |
6 |
Annual Cash Inflows |
$13,000 |
0.455586548 |
$5,922.63 |
7 |
Annual Cash Inflows |
$13,000 |
0.399637323 |
$5,195.29 |
8 |
Annual Cash Inflows |
$13,000 |
0.350559055 |
$4,557.27 |
9 |
Annual Cash Inflows |
$13,000 |
0.307507943 |
$3,997.60 |
10 |
Annual Cash Inflows |
$13,000 |
0.26974381 |
$3,506.67 |
11 |
Annual Cash Inflows |
$13,000 |
0.236617377 |
$3,076.03 |
Net Present Value |
$35,885.53 |
Net Present Value = $35,885.5 (Rounded to nearest cent) or $35,886
Hope the above calculations, working and explanations are clear to you and help you in understanding the concept of question.... please rate my answer...in case any doubt, post a comment and I will try to resolve the doubt ASAP…thank you