Question
In: Finance
Project A cost $1,050 and Project B cost $1,050, there expected net cash inflows are shown...
- Project A cost $1,050 and Project B cost $1,050, there expected net cash inflows are shown on the timeline below and there WACC is 9.00%. What is the Discounted Payback for Project A?
WACC 9.00%
|
|
0 1 2 3 4
l l l l l
ProjA -$1,050 $675 $650
ProjB -$1,050 $360 $360 $360 $360
Solutions
Expert Solution
Ans Discounted Payback for Project A is 1.79 years
| Year | Project Cash Flows (i) | DF@ 9% | DF@ 9% (ii) | PV of Project A ( (i) * (ii) ) | Cumulative Cash Flow |
| 0 | -1050 | 1 | 1 | (1,050.00) | (1,050.00) |
| 1 | 675 | 1/((1+9%)^1) | 0.917 | 619.27 | (430.73) |
| 2 | 650 | 1/((1+9%)^2) | 0.842 | 547.09 | 116.36 |
| NPV | 116.36 | ||||
| Discounted Payback Period = | 1 year + 430.73/547.09 | ||||
| 1.79 years | |||||
jeff jeffy answered 5 months agoRelated Solutions
Project A cost $1,050 and Project B cost $1,050, there expected net cash inflows are shown...
Project A cost $1,050 and Project B cost $1,050, there expected
net cash inflows are shown on the timeline below and there WACC is
10.00%. What is Project A's Modified Internal Rate of Return
(MIRR)?
WACC 10.00%
0
1
2
3
4
l
l
l
l
l
ProjA
-$1,050
$675 $650
ProjB
-$1,050
$360 $360
$360 $360
Project A cost $1,000 and Project B cost $1,000, there expected net cash inflows are shown...
Project A cost $1,000 and Project B cost $1,000, there expected
net cash inflows are shown on the timeline below and there WACC is
9.00%. What is Project B's Discounted Payback?
WACC 9.00%
0
1
2
3
4
l
l
l
l
l
ProjA
-$1,000
$675 $650
ProjB -$1,000
$1,000 $700
$50
$50
Project A cost $1,000 and Project B cost $1,000, there expected net cash inflows are shown...
Project A cost $1,000 and Project B cost $1,000, there expected
net cash inflows are shown on the timeline below and there WACC is
10.00%. What is Project B's Modified Internal Rate of Return
(MIRR)?
WACC 10.00%
0
1
2
3
4
l
l
l
l
l
ProjA
-$1,000
$675 $650
ProjB -$1,000
$1,000 $700
$50
$50
A project has an initial cost of $ 42,000, expected net cash inflows of $ 9,000...
A project has an initial cost of $ 42,000, expected net cash
inflows of $ 9,000 per year for 7 years, and a cost of capital of
12%. What is the project’s NPV ? Please show the steps of your
work.
A) A project has an initial cost of $51,125, expected net cash inflows of $14,000 per...
A) A project has an initial cost of $51,125, expected net cash
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time line.) Do not round intermediate calculations. Round your
answer to two decimal places.
B)A project has an initial cost of $70,350, expected net cash
inflows of $11,000 per year for 10 years, and a cost of capital of
11%. What is the...
Helsinki Co. is considering a new project that will cost $328,500. The expected net cash inflows...
Helsinki Co. is considering a new project that will cost
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Please show work.
Part A: A project has an initial cost of $60,025, expected net cash inflows of $11,000...
Part A: A project has an initial cost of $60,025, expected net
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capital of 14%. What is the project's PI? Do not round your
intermediate calculations. Round your answer to two decimal
places.
Part B: A project has an initial cost of $35,000, expected net
cash inflows of $14,000 per year for 10 years, and a cost of
capital of 11%. What is the project's MIRR? Do...
A project has an initial cost of $70,000, expected net cash inflows of $15,000 per year...
A project has an initial cost of $70,000, expected net cash
inflows of $15,000 per year for 10 years, and a cost of capital of
12%. What is the project's PI? (Hint: Begin by
constructing a time line.) Do not round intermediate calculations.
Round your answer to two decimal places.
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