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?
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.
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...
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.
6. A project requires initial capital outlay of
GH₡300,000. The project will provide annual cash flow of GH₡80,000
for 5 years. what is the payback period? *
Your answer
Net Present Value
An organization’s initial outlay for a
proposed capital budgeting project is $1,000,000. Use the table
below to calculate the net present value.
Free Cash Flows
Year
Amount
Year
Amount
1
$250,000.00
4
$310,000.00
2
$60,000.00
5
$75,000.00
3
$0.00
6
$380,000.00
You are the CEO of the company. If the
firm’s cost of capital is 8%, how likely would you be to approve
this project when the net present value is $1.00? Would you be more
or...
1) A company invests in a new project that requires an initial
capital outlay of $852790. The project will generate annual net
cash flows of $145612 over a period of 8 years. The after-tax cost
of capital is 9%. In addition, a working capital outlay of $94620
will be required. This working capital outlay will be recovered at
the end of the project’s life.
What is the net present value of the project?
Select one:
a. $-141474
b. $-93987
c....
A project has an initial cost of $52,125, expected net cash
inflows of $12,000 per year for 7 years, and a cost of capital of
12%. What is the project's discounted payback period? (Hint: Begin
by constructing a time line.) Do not round intermediate
calculations. Round your answer to two decimal places.
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.
A project needs an initial outlay of $3000 for equipment and
will net a cash flow of $250 for the next 15 years. At the end of
the 15th year, there is a Salvage Value of $1000 for the equipment.
What is the NPV of the project if the cost of capital is 15% p.a.
effective (to the nearest dollar)?
Select one:
a. -$945
b. -$1415
c. $2250
d. $1585
A project needs an initial outlay of $3000 for equipment and
will net a cash flow of $300 for the next 12 years. At the end of
the 12th year, there is a Salvage Value of $1000 for the equipment.
What is the NPV of the project if the cost of capital is 12% p.a.
effective (to the nearest dollar)?