A supervisor asks you to advise them on a project's value. The cost of capital is...

A supervisor asks you to advise them on a project's value. The cost of capital is 8.4%

Year	Cash flows
0	-$119,000
1	23,000
2	23,000
3	37,000
4	32,000
5	52,000

The NPV of the project is $____. Round to two decimal places

Expert Solution

Year	Cash flows	PVIF at 8.4%	PV at 8.4%
0	$ -1,19,000	1	$ -1,19,000.00
1	$ 23,000	0.92251	$ 21,217.71
2	$ 23,000	0.85102	$ 19,573.54
3	$ 37,000	0.78508	$ 29,047.84
4	$ 32,000	0.72424	$ 23,175.70
5	$ 52,000	0.66812	$ 34,742.17
			$ 8,756.96
The NPV of the project =		$ 8,756.96
Note:
PVIF = 1/1.084^t.
For t=1, PVIF = 1/1.084^1 =		0.92251

jeff jeffy answered 1 year ago

You have the following information on a project's cash flows. The cost of capital is 8.0%

You have the following information on a project's cash flows. The cost of capital is 8.0% Year Cash flows 0 -$101,000 1 23,000 2 23,000 3 25,000 4 32,000 5 61,000 The NPV of the project is $____. Round to two decimal places.

1. You have the following information on a project's cash flows. The cost of capital is...

1. You have the following information on a project's cash flows. The cost of capital is 16.1%. Year Cash Flows 0 -$105,000 1 47,000 2 13,000 3 31,000 4 39,000 5 -24,000 The NPV of the project is $____. Round to two decimal places. 2. Given a face value of $1,000 and 19 years to maturity, what is the price of a zero coupon bond if rates are at 6.7 percent (assume semi-annual compounding)? (Round your answer to 2 decimal...

A project's NPV profile graph intersects the Y-axis at 0% cost of capital and intersects the...

A project's NPV profile graph intersects the Y-axis at 0% cost of capital and intersects the X-axis at the project's -( payback, MIRR, IRR ?)(where NPV = 0). The Y-axis intersection point represents the project's undiscounted NPV. The point at which 2 projects' profiles cross one another is the crossover rate. The crossover rate can be found by calculating the--------? of the differences in the projects' cash flows (Project Delta). A _______? NPV profile indicates that increases in the cost...

Q1 Using the company's overall cost of capital to evaluate a project's cash flows is problematic...

Q1 Using the company's overall cost of capital to evaluate a project's cash flows is problematic in that the company is a collection of projects, with the possibility that each project has a different level of risk than the other projects currently working for the company. Select one: True False Q2) The three principal ways in which venture capital companies exit venture-backed companies are Select one: a. selling to a strategic buyer, buying out the founder, and offering shares to...

1. You are a financial analyst at Bank of BU. Your supervisor asks you to study...

1. You are a financial analyst at Bank of BU. Your supervisor asks you to study two stocks, Cosi and Pepca. After research, you have the following information: • In scenario 1, Cosi’s return is 8.5%, and Pepca’s return is 4%. Market return is 6%. • In scenario 2, Cosi’s return is 26.5%, and Pepca’s return is 28%. Market return is 18%. • The risk free rate is 5%. • There are only two possible scenarios. Your supervisor asks you...

You are a consultant of THEIR COMPANY hired in December 2017. You advise them to consider...

You are a consultant of THEIR COMPANY hired in December 2017. You advise them to consider declaration a stock split of 2-for-1 instead of cash dividend 10%. However, THEIR COMPANY’s BOD is not familiar with stock split and they want to know what would be the effect of your advice to its Financial Statement. The following data are excerpts from its financial statements as of December 31, 2017: Preferred Stock P 500,000.00 Common Stock (100,000 shares at P50 par) ...

Representative Smith also asks that you briefly advise him on the following: What is meant by...

Representative Smith also asks that you briefly advise him on the following: What is meant by the subpart F rules? Why are they part of the Internal Revenue Code? What is a CFC? What are the requirements for when a corporation is a CFC?

The Board of Directors has ask you to advise them as to whether it would be...

The Board of Directors has ask you to advise them as to whether it would be better to compensate employees with an additional bonus or restricted stock units (RSUs). They have noted that the Corporate tax rate is expected to decline from 35% to 15% and the Individual tax rates is expected to decline from 40% TO 20%. next year. Advice the Board as to the different tax treatment from both an employer and employee perspective of Bonuses vs RSU’s....

Your supervisor has given you a number of rejected claims and asks you to determine why...

Your supervisor has given you a number of rejected claims and asks you to determine why the claims were denied and to maintain a log of these reasons to be discussed at the next team meeting. How will you proceed with this assignment?

As part of your summer job at the local community center, your supervisor asks you to...

As part of your summer job at the local community center, your supervisor asks you to lead a community discussion on the uses of embryonic stem cells. Your goal is to cut through the rhetoric and provide information to the diverse group of community members that will attend. Write your notes for this event. (2pt each) Include: 1) a definition of a stem cell including its to two main characteristics, 2) a brief description of the origin of human embryonic...

Question