Question
In: Finance
10. Suppose a company has proposed a new 4-year project. The project has an initial outlay...
10. Suppose a company has proposed a new 4-year project. The project has an initial outlay of $60,000 and has expected cash flows of $18,000 in year 1, $23,000 in year 2, $26,000 in year 3, and $34,000 in year 4. The required rate of return is 14% for projects at this company. What is the Payback for this project? (Answer to the nearest tenth of a year, e.g. 1.2)
11. Suppose a company has proposed a new 4-year project. The project has an initial outlay of $64,000 and has expected cash flows of $20,000 in year 1, $24,000 in year 2, $28,000 in year 3, and $34,000 in year 4. The required rate of return is 14% for projects at this company. What is the discounted payback for this project? (Answer to the nearest tenth of a year, e.g. 3.2)
12.
Suppose a company has proposed a new 4-year project. The project has an initial outlay of $27,000 and has expected cash flows of $7,000 in year 1, $9,000 in year 2, $11,000 in year 3, and $14,000 in year 4. The required rate of return is 15% for projects at this company. What is the net present value for this project? (Answer to the nearest dollar.)
Solutions
jeff jeffy answered 2 years agoRelated Solutions
Suppose a company has proposed a new 4-year project. The project has an initial outlay of...
Suppose a company has proposed a new 4-year project. The project
has an initial outlay of $25,000 and has expected cash flows of
$7,000 in year 1, $9,000 in year 2, $12,000 in year 3, and $13,000
in year 4. The required rate of return is 11% for projects at this
company. What is the net present value for this project? (Answer to
the nearest dollar.)
Suppose a company has proposed a new 4-year project. The project has an initial outlay of...
Suppose a company has proposed a new 4-year project. The project
has an initial outlay of $17,000 and has expected cash flows of
$8,000 in year 1, $9,000 in year 2, $10,000 in year 3, and $14,000
in year 4. The required rate of return is 15% for projects at this
company. What is the profitability index for this project? (Answer
to the nearest hundredth, e.g. 1.23)
Suppose a company has proposed a new 4-year project. The project has an initial outlay of...
Suppose a company has proposed a new 4-year project. The project
has an initial outlay of $29,000 and has expected cash flows of
$7,000 in year 1, $8,000 in year 2, $11,000 in year 3, and $13,000
in year 4. The required rate of return is 14% for projects at this
company. What is the profitability index for this project? (Answer
to the nearest hundredth, e.g. 1.23)
A company has proposed a project that has initial costs of $10 million, on-going costs of...
A company has proposed a project that has initial costs of $10
million, on-going costs of $1.8 million per year and on-going
benefits of $2.2 million per year. The project's life is 20 years.
Assuming all on-going costs and benefits occur at the end of each
year and that interest is calculated annually, what is the Net
Present Value of the project given a discount rate of 10.0%?
Enter your answer in the box below in units of $.
A company is considering a 6-year project that requires an initial outlay of $23,000. The project...
A company is considering a 6-year project that requires an
initial outlay of $23,000. The project engineer has estimated that
the operating cash flows will be $4,000 in year 1, $6,000 in year
2, $7,000 in year 3, $7,000 in year 4, $7,000 in year 5, and $8,000
in year 6. At the end of the project, the equipment will be fully
depreciated, classified as 5-year property under MACRS. The project
engineer believes the equipment can be sold for $5,000...
A company is considering a 6-year project that requires an initial outlay of $30,000. The project...
A company is considering a 6-year project that requires an
initial outlay of $30,000. The project engineer has estimated that
the operating cash flows will be $3,000 in year 1, $6,000 in year
2, $7,000 in year 3, $7,000 in year 4, $7,000 in year 5, and $8,000
in year 6. At the end of the project, the equipment will be fully
depreciated, classified as 5-year property under MACRS. The project
engineer believes the equipment can be sold for $6,000...
Your company is considering a project with an initial outlay of $1,000 in year zero and...
Your company is considering a project with an initial outlay of
$1,000 in year zero and the following cash flows over the next 4
years:
Year
Cash flow
1
200
2
300
3
400
4
500
Assuming cost of capital is 11%:
Use Scenario manager to calculate Expected NPV
(format your answer to 2 decimal
places) given the following three
scenarios and their probabilities of occurrence:
Scenario
Cost of capital
Probability
Best case scenario
9%
25%
Most likely case Scenario...
Your company is considering a project with an initial outlay of $10,000 in year zero and...
Your company is considering a project with an initial
outlay of $10,000 in year zero and the following cash
flows over the next 4 years:
Year
Cash flow
1
2,000
2
3,000
3
4,000
4
5,000
Assuming cost of capital is 11%:
1) The project's Modified Internal Rate of
Return is:
12.24%
12.50%
0%
11%
13.00%
A proposed project requires an initial cash outlay of $250,919 for equipment and an additional cash...
A proposed project requires an initial cash outlay of $250,919
for equipment and an additional cash outlay of $30,951 in year 1 to
cover operating costs. During years 2 through 4, the project will
generate cash inflows of $500,000 a year. What is the net present
value of this project at a discount rate of 4 percent? Round your
answer to the nearest whole dollar.
1) A company invests in a new project that requires an initial capital outlay of $852790....
1) A company invests in a new project that requires an initial
capital outlay of $852790. The project will generate annual net
cash flows of $145612 over a period of 8 years. The after-tax cost
of capital is 9%. In addition, a working capital outlay of $94620
will be required. This working capital outlay will be recovered at
the end of the project’s life.
What is the net present value of the project?
Select one:
a. $-141474
b. $-93987
c....
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