Question

In: Accounting

Project L costs $35,000, its expected cash inflows are $13,000 per year for 11 years, and...

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.

Solutions

Expert Solution

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


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