Question
In: Finance
Using a cost of capital of 10%, calculate the net present value for the project shown...
Using a cost of capital of 10%, calculate the net present value for the project shown in the following table and indicate whether it is acceptable
Initial investment $-1,147
Year Cash inflows
1 $84
2 $138
3 $187
4 $257
5 $311
6 $375
7 $274
8 $98
9 $49
10 $24
The net present value (NPV) of the project is ____
Solutions
jeff jeffy answered 6 months agoRelated Solutions
Using a cost of capital of 13%, calculate the net present value for the project shown...
Using a cost of capital of 13%, calculate the net present value
for the project shown in the following table and indicate whether
it is acceptable, LOADING.... The net present value (NPV) of the
project is $
Initial investment -1,151,000
Year Cash inflows
1 84,000
2 136,000
3 192,000
4 255,000
5 318,000
6 382,000
7 277,000
8 100,000
9 42,000
10 25,000
Using a cost of capital of 11%, calculate the net present value for the project shown...
Using a cost of capital of 11%, calculate the net present
value for the project shown in the following table and indicate
whether it is acceptable,
Initial investment
(CF 0CF0)
negative $−$1149
Year
(t)
Cash inflows
(CF Subscript tCFt)
in thousands
1
$8080
2
$130
3
$189
4
$256
5
$312
6
$376
7
$280
8
$102
9
$42
10
$20
The net present value (NPV) of the project is
$-75,817.60. (Round to the nearest cent.) Is the project
acceptable?
Using a cost of capital of 11%, calculate the net present value for the project shown...
Using a cost of capital of 11%, calculate the net present value
for the project shown in the following table and indicate whether
it is acceptable
Initial investment
(CF 0CF0)
-$1149
Year
(t)
Cash inflows
(CF Subscript tCFt)
in thousands
1
$80
2
$130
3
$189
4
$256
5
$312
6
$376
7
$280
8
$102
9
$42
10
$20
Using a cost of capital of 15%, calculate the net present value for the project shown...
Using a cost of capital of 15%, calculate the net present value
for the project shown in the following table and indicate whether
it is acceptable
Initial investment $-1,145
Year Cash inflows
1 $76
2 $132
3 $185
4 $256
5 $316
6 $383
7 $277
8 $98
9 $43
10 $25
The net present value (NPV) of the project is $_____
Please show all work and what inputs would be in a financial
calculator
Net present value Using a cost of capital of 11%, calculate the net present value for...
Net present value Using a cost of capital of
11%, calculate the net present value for the project
shown in the following table and indicate whether it is
acceptable,
Initial investment
(CF
0CF0)
negative 1 comma 143 comma 000−1,143,000
Year
(t)
Cash inflows
(CF Subscript
tCFt)
1
$81,000
2
$138,000
3
$193,000
4
$258,000
5
$311,000
6
$377,000
7
$270,000
8
$98,000
9
$45,000
10
$29,000
The net present value (NPV) of the project is _____$ (Round
to the nearest...
Net present value. Independent projects Using a 14% cost of capital, calculate the net present value...
Net present value. Independent projects Using a 14% cost of
capital, calculate the net present value for each of the
independent projects shown in the following table, and indicate
whether each is acceptable.
Project A
Project B
Project C
Project D
Project E
Initial investment
$26,000
$500,000
$170,000
$950,000
$80,000
Year
Cash inflows
1
$4,000
$100,000
$20,000
$230,000
$ 0
2
4,000
120,000
19,000
230,000
0
3
4,000
140,000
18,000
230,000
0
4
4,000
160,000
17,000
230,000
20,000
5
4,000...
Net present value. Independent projects Using a 14% cost of capital, calculate the net present value...
Net present value. Independent projects Using a 14% cost of
capital, calculate the net present value for each of the
independent projects shown in the following table, and indicate
whether each is acceptable.
Project A
Project B
Project C
Project D
Project E
Initial investment
$26,000
$500,000
$170,000
$950,000
$80,000
Year
Cash inflows
1
$4,000
$100,000
$20,000
$230,000
$ 0
2
4,000
120,000
19,000
230,000
0
3
4,000
140,000
18,000
230,000
0
4
4,000
160,000
17,000
230,000
20,000
5
4,000...
Evaluate the following projects, using the Net Present Value (NPV). Assume a cost of capital of...
Evaluate the following projects, using the Net Present Value
(NPV). Assume a cost of capital of 6%.
Project
A
Project B
Initial Cash Outflow
$200,000
$160,000
Year 1 Cash flow
69,000
80,000
Year 2 Cash flow
71,000
80,000
Year 3 Cash flow
85,000
50,000
Calculate the NPV for each project.
Which project would you accept according to the NPV?
Evaluate the following projects, using the net present value criteria. Assume a cost of capital of...
Evaluate the following projects, using the net present value
criteria. Assume a cost of capital of 9%.
Project M
Project N
Initial Cash Outflow
-$260,000
-$260,000
Year 1 Cash flow
19,000
185,000
Year 2 Cash flow
121,000
85,000
Year 3 Cash flow
185,000
55,000
a.
What are the NPVs for the projects and what do these numbers
tell you?
b.
If the projects are independent, which would you accept
according to the...
Evaluate the capital budgeting project using the traditional Net Present Value (NPV) approach and the Internal...
Evaluate the capital budgeting project using the traditional Net
Present Value (NPV) approach and the Internal Rate of Return (IRR)
criterion and present findings.
Find if this new proposal will turn out to be a good investment
for his company.
Capital budgeting and investment proposal – a new product line
of branded shirts that the committee was considering for launch.
What would be the basis for calculating the after-tax operating
cash flows for the capital project? How would you arrive...
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