Question

In: Finance

NPV Project K costs $40,000, its expected cash inflows are $13,000 per year for 12 years,...

NPV

Project K costs $40,000, its expected cash inflows are $13,000 per year for 12 years, and its WACC is 11%. What is the project's NPV? Round your answer to the nearest cent.

$   

Solutions

Expert Solution

Year Cash flow PVIF@11% Present value
0 $                 (40,000) 1.000 $              (40,000.00)
1 $                    13,000 0.901 $                11,711.71
2 $                    13,000 0.812 $                10,551.09
3 $                    13,000 0.731 $                   9,505.49
4 $                    13,000 0.659 $                   8,563.50
5 $                    13,000 0.593 $                   7,714.87
6 $                    13,000 0.535 $                   6,950.33
7 $                    13,000 0.482 $                   6,261.56
8 $                    13,000 0.434 $                   5,641.04
9 $                    13,000 0.391 $                   5,082.02
10 $                    13,000 0.352 $                   4,578.40
11 $                    13,000 0.317 $                   4,124.68
12 $                    13,000 0.286 $                   3,715.93
Net present value $                44,400.63

Related Solutions

NPV Project L costs $70,000, its expected cash inflows are $13,000 per year for 12 years,...
NPV Project L costs $70,000, its expected cash inflows are $13,000 per year for 12 years, and its WACC is 9%. What is the project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations. $ Click here to read the eBook: Internal Rate of Return (IRR) IRR Project L costs $44,206.49, its expected cash inflows are $9,000 per year for 11 years, and its WACC is 9%. What is the project's IRR? Round your answer...
NPV Project L costs $70,000, its expected cash inflows are $13,000 per year for 12 years,...
NPV Project L costs $70,000, its expected cash inflows are $13,000 per year for 12 years, and its WACC is 9%. What is the project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations. $ Click here to read the eBook: Internal Rate of Return (IRR) IRR Project L costs $44,206.49, its expected cash inflows are $9,000 per year for 11 years, and its WACC is 9%. What is the project's IRR? Round your answer...
NPV Project K costs $70,000, its expected cash inflows are $12,000 per year for 12 years,...
NPV Project K costs $70,000, its expected cash inflows are $12,000 per year for 12 years, and its WACC is 10%. What is the project's NPV? Round your answer to the nearest cent. $ ( ) IRR Project K costs $52,894.84, its expected cash inflows are $11,000 per year for 11 years, and its WACC is 10%. What is the project's IRR? Round your answer to two decimal places. ( )%
Project K costs $57,758.92, its expected cash inflows are $13,000 per year for 9 years, and...
Project K costs $57,758.92, its expected cash inflows are $13,000 per year for 9 years, and its WACC is 9%. What is the project's IRR? Round your answer to two decimal places.
Project K costs $55,000, its expected cash inflows are $13,000 per year for 8 years, and...
Project K costs $55,000, its expected cash inflows are $13,000 per year for 8 years, and its WACC is 7%. What is the project's discounted payback? Round your answer to two decimal places. Project K costs $60,000, its expected cash inflows are $15,000 per year for 8 years, and its WACC is 12%. What is the project's NPV? Round your answer to the nearest cent. Project K costs $75,000, its expected cash inflows are $15,000 per year for 10 years,...
Project L costs $65,501.59, its expected cash inflows are $13,000 per year for 11 years, and...
Project L costs $65,501.59, its expected cash inflows are $13,000 per year for 11 years, and its WACC is 12%. What is the project's IRR? Round your answer to two decimal places.
Project L costs $62,392.42, its expected cash inflows are $13,000 per year for 11 years, and...
Project L costs $62,392.42, its expected cash inflows are $13,000 per year for 11 years, and its WACC is 13%. What is the project's IRR? Round your answer to two decimal places.
Project L costs $61,265.72, its expected cash inflows are $13,000 per year for 9 years, and...
Project L costs $61,265.72, its expected cash inflows are $13,000 per year for 9 years, and its WACC is 14%. What is the project's IRR? Round your answer to two decimal places.
Project L costs $55,000, its expected cash inflows are $13,000 per year for 10 years, and...
Project L costs $55,000, its expected cash inflows are $13,000 per year for 10 years, and its WACC is 14%. What is the project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations.
Project L costs $55,000, its expected cash inflows are $13,000 per year for 8 years, and...
Project L costs $55,000, its expected cash inflows are $13,000 per year for 8 years, and its WACC is 7%. What is the project's discounted payback? Round your answer to two decimal places.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT