A project has an initial cash outflow of $8,940 and produces cash inflows of $3,007, $3,392,...

A project has an initial cash outflow of $8,940 and produces cash inflows of $3,007, $3,392, and $3,993 for Years 1 through 3, respectively. What is the NPV at a discount rate of 13.9 percent? Do not round intermediate calculations and round your answer to the nearest cent.

Expert Solution

NPV = -Initial cash outflow + Present value of cash flows

NPV = -$8,940 + $3,007/1.139 + $3,392/1.139^2 + $3,993/1.139^3

NPV = -$983.08

jeff jeffy answered 2 years ago

A project requires an initial cash outflow of $5,400, and it will bring in cash inflows...

A project requires an initial cash outflow of $5,400, and it will bring in cash inflows of $2,600, $2,500, $2,900, $1,400, for the next four years, respectively. What is the net present value of these cash flows, given a discount rate of 10%? (Round answers to two decimals, enter answer without $ or "," , such as 1234.78)

A project has an initial cost of $14,500 and produces cash inflows of $4,600, $6,100, and...

A project has an initial cost of $14,500 and produces cash inflows of $4,600, $6,100, and $8,500 over the next three years, respectively. What is the discounted payback period if the required rate of return is 15 percent? a. 2.36 years b. 2.45 years c. 2.55 years d 2.62 years e. never

A project has an initial cost of $8,500 and produces cash inflows of $2,700, $5,000, and...

A project has an initial cost of $8,500 and produces cash inflows of $2,700, $5,000, and $1,600 over the next three years, respectively. What is the discounted payback period if the required rate of return is 7 percent? A) 2.30 years B) 2.15 years C) 2.91 years D) never E) 2.50 years

An investment requires an initial cash outflow of $5,100, and it will bring in cash inflows...

An investment requires an initial cash outflow of $5,100, and it will bring in cash inflows of $2,700, $1,500, $2,600, $2,700, for the next four years, respectively. What is the internal rate of return (IRR) of this project? (Format answer to percent and rounded to two decimals, enter your answers without %, for example, for answer 0.1243, enter 12.43 only)

1. A project has an initial cost of $31,400 and produces cash inflows of $7,200, $8,900,...

1. A project has an initial cost of $31,400 and produces cash inflows of $7,200, $8,900, $7,500, $2,100, and $6,500 over the next five years, respectively. What is the payback period for this project? should this project be accepted if management’s cutoff period is 4 years? 2. A project has an initial cost of $7,900 and cash inflows of $2,100, $3,140, $3,800, and $4,500 a year over the next four years, respectively. Assume a discount rate of 10%. What is...

Calculate the IRR for the following project: a. An initial outflow of $15,220 followed by inflows...

Calculate the IRR for the following project: a. An initial outflow of $15,220 followed by inflows of $5,000, $6,000, and $6,500 b. An initial outflow of $47,104 followed by inflows of $16,000, $17,000, and $18,000.

What is the net present value of a project that has an initial cash outflow of...

What is the net present value of a project that has an initial cash outflow of $-13,000, at time 0, and the following cash flows for years 1-4? The required return is 10.0%. DO NOT USE DOLLAR SIGNS OR COMMAS IN YOUR ANSWER. ENTER YOUR ANSWER TO THE NEAREST DOLLAR (e.g. 1250). Year Cash Flows 1 $3,950 2 $3,750 3 $5,900 4 $6,400

A project has an initial cost of $350. The project has annual cash inflows of $200,...

A project has an initial cost of $350. The project has annual cash inflows of $200, $160, $100, and $150, for the next four years, respectively. The discount rate is 25%. What is the discounted payback period of the project? a. the project never pays back b. 1 year c. 2 years d. 3 years e. 4 years

Canadian pacific is considering a project that has an initial cash outflow of $1,245 and expected...

Canadian pacific is considering a project that has an initial cash outflow of $1,245 and expected cash inflows of $500 in years 1,2,3. what is the projects payback?

Project Z has an initial of $52,885.00. The project is expected to have cash inflows of...

Project Z has an initial of $52,885.00. The project is expected to have cash inflows of $25,325.00 at the end of each year for the next 19 years. The corporation has a WACC of 13.38%. Calculate the NPV for project Z.

Question