A project that provides annual cash flows of $10,500 for 8 years costs $50,387 today. a....

A project that provides annual cash flows of $10,500 for 8 years costs $50,387 today. a. If the required return is 19 percent, what is the NPV for this project? b. Determine the IRR for this project.

Expert Solution

Ans 1	computation of NPV

	We have to use the financial calculator to solve for the present value of cash inflow
	put in calculator

	FV		0
	PMT		-10500
	I		19%
	N		8

	Compute PV	$41,520.84

i	Present value of cash inflow =		$ 41,520.84
ii	Present value of cash outflow =		$ 50,387.00

iii=i-ii	NPV=			($8,866.16)
	Ans =			($8,866.16)


Ans 2	We have to use financial calculator to solve for IRR
	Put in calculator

	FV		0
	PV		-50387
	PMT		10500
	N		8

	Compute I	13.00%

	IRR =		13.00%

jeff jeffy answered 3 years ago

A project that provides annual cash flows of $3,100 for 8 years costs $13,400 today. Required:...

A project that provides annual cash flows of $3,100 for 8 years costs $13,400 today. Required: (a) If the required return is 10 percent, what is the NPV for this project? (b) Determine the IRR for this project.

A project has annual cash flows of $9,500 for the next 8 years and then $10,500...

A project has annual cash flows of $9,500 for the next 8 years and then $10,500 each year for the following 8 years. The IRR of this 16-year project is 12%. If the firm's WACC is 10.5%, what is the project's NPV?

A project that provides annual cash flows of $13,500 for 6 years costs $57,112 today. (a)...

A project that provides annual cash flows of $13,500 for 6 years costs $57,112 today. (a) If the required return is 13 percent, what is the NPV for this project? (b) Determine the IRR for this project.

A project that provides annual cash flows of $17,000 for 6 years costs $60,000 today. a....

A project that provides annual cash flows of $17,000 for 6 years costs $60,000 today. a. If the required return is 10 percent, what is the NPV for this project? b. Determine the IRR for this project.

A project that provides annual cash flows of $14,700 for 9 years costs $81,395 today. A)...

A project that provides annual cash flows of $14,700 for 9 years costs $81,395 today. A) If the required return is 4 percent, what is the NPV for this project? B)Determine the IRR for this project.

A project that provides annual cash flows of $17,300 for nine years costs $78,000 today. ...

A project that provides annual cash flows of $17,300 for nine years costs $78,000 today. What is the NPV for the project if the required return is 8 percent? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) NPV $ At a required return of 8 percent, should the firm accept this project? Accept or Reject What is the NPV for the project if the required return is 20 percent? (Do not...

A project that provides annual cash flows of $20,000 for 5 years costs $64,000 today. a....

A project that provides annual cash flows of $20,000 for 5 years costs $64,000 today. a. If the required return is 14 percent, what is the NPV for this project? b. Determine the IRR for this project.

A project that provides annual cash flows of $2,500 for 7 years costs $9,400 today. ...

A project that provides annual cash flows of $2,500 for 7 years costs $9,400 today. Required: (a) If the required return is 9 percent, what is the NPV for this project? (b) Determine the IRR for this project. rev: 09_18_2012, 09_26_2017_QC_C

A project that provides annual cash flows of $12,300 for 11 years costs $79,889 today. ...

A project that provides annual cash flows of $12,300 for 11 years costs $79,889 today. a. If the required return is 14 percent, what is the NPV for this project? b. Determine the IRR for this project.

A project that provides annual cash flows of $2,620 for eight years costs $9,430 today. a....

A project that provides annual cash flows of $2,620 for eight years costs $9,430 today. a. At a required return of 8 percent, what is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. At a required return of 24 percent, what is the NPV of the project? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to...

Question