Question

In: Finance

A project has the following cash flows:    Year Cash Flow 0 $ 43,500 1 –  ...

A project has the following cash flows:

  

Year Cash Flow
0 $ 43,500
1 –   22,500
2 –   33,500

  

a.

What is the IRR for this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

b. What is the NPV of this project, if the required return is 12 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
c. What is the NPV of the project if the required return is 0 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
d. What is the NPV of the project if the required return is 24 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

  

Solutions

Expert Solution



Related Solutions

A project has the following cash flows: Year Cash Flow 0 $ 40,000 1 – 19,000...
A project has the following cash flows: Year Cash Flow 0 $ 40,000 1 – 19,000 2 – 30,000 What is the IRR for this project? What is the NPV of this project, if the required return is 11 percent? What is the NPV of the project if the required return is 0 percent? What is the NPV of the project if the required return is 22 percent?
A project has the following cash flows: Year Cash Flow 0 $ 47,000 1 – 26,000...
A project has the following cash flows: Year Cash Flow 0 $ 47,000 1 – 26,000 2 – 37,000 What is the IRR for this project? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)   IRR % What is the NPV of this project, if the required return is 12 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2...
A project has the following cash flows: Year Cash Flow 0 $ 42,000 1 – 21,000...
A project has the following cash flows: Year Cash Flow 0 $ 42,000 1 – 21,000 2 – 32,000 What is the IRR for this project? (Round your answer to 2 decimal places. (e.g., 32.16)) IRR % What is the NPV of this project, if the required return is 12 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) NPV $ What is...
There is a project with the following cash flows : Year Cash Flow 0 −$21,800 1...
There is a project with the following cash flows : Year Cash Flow 0 −$21,800 1 6,300 2 7,350 3 6,750 4 4,400 What is the payback period? Multiple Choice a. 4.00 years b. 3.32 years c. 3.74 years d. 3.56 years e. 2.79 years
There is a project with the following cash flows : Year Cash Flow 0 −$23,700 1...
There is a project with the following cash flows : Year Cash Flow 0 −$23,700 1 7,000 2 7,700 3 7,100 4 5,100 What is the payback period? Multiple Choice 2.73 years 4.00 years 3.81 years 3.63 years 3.37 years
A project has the following cash flows: Year Cash Flow 0 –$ 16,100 1 6,800 2...
A project has the following cash flows: Year Cash Flow 0 –$ 16,100 1 6,800 2 8,100 3 6,600 What is the NPV at a discount rate of zero percent? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) NPV $ What is the NPV at a discount rate of 11 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV $ What is the NPV...
A project has the following cash flows: Year Cash Flow 0 $ 73,000 1 –54,000 2...
A project has the following cash flows: Year Cash Flow 0 $ 73,000 1 –54,000 2 –27,600 What is the IRR for this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Internal rate of return             % What is the NPV of this project if the required return is 5 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round...
A project has the following cash flows:    Year Cash Flow 0 $64,100 1 –30,100 2...
A project has the following cash flows:    Year Cash Flow 0 $64,100 1 –30,100 2 –48,100    a. What is the IRR for this project?    b. What is the NPV of this project, if the required return is 11.5 percent?    c. NPV at 0 percent?    d. NPV at 23 percent?
A project has the following cash flows: Year Cash Flow 0 –$ 15,600 1 6,300 2...
A project has the following cash flows: Year Cash Flow 0 –$ 15,600 1 6,300 2 7,600 3 6,100     What is the NPV at a discount rate of zero percent? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)      NPV $       What is the NPV at a discount rate of 9 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)      NPV $   ...
Tipton Industries is considering a project that has the following cash flows: Year Cash Flow 0...
Tipton Industries is considering a project that has the following cash flows: Year Cash Flow 0 -6,500 1 2,000 2 3,000 3 3,000 4 1,500 The project has a WACC (cost of capital) of 12% a. what is the firm's payback? b. what is the NPV? c. what is the IRR? d. is this profit profitable? explain
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT