Question

In: Finance

Honey Bee is thinking about purchasing a new clam maker for $14,000. The expected net cash...

Honey Bee is thinking about purchasing a new clam maker for $14,000. The expected net cash flows resulting from the digger are $9,000 in year 1, $7,000 in the 2nd year, $5,000 in the 3rd year, and $3,000 in the 4th year. Assuming that the cost of capital is 12 percent what is the MIRR for the project?

       35%
       30%
       21%
       28%
       13%

Solutions

Expert Solution

SEE IMAGES

ANY DOUBTS, FEEL FREE TO ASK


Related Solutions

3. You are thinking about starting a bee keeping business to produce honey. You also plan...
3. You are thinking about starting a bee keeping business to produce honey. You also plan to sell pollination services to almond growers in California. Below is the cost function you have estimated for producing honey and pollination services with 450 hives: C(QH, QP) = 5,000 + 12QH + 100QP + 0.002 QH QP where QH is the number of pounds of honey produced and QP is the number of acres of almond trees pollinated. (5) a. You have contracted...
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 inflows of $14,000 per year for 11 years, and a cost of capital of 14%. What is the project's MIRR? (Hint: Begin by constructing a 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...
A project has an initial cost of $71,975, expected net cash inflows of $14,000 per year...
A project has an initial cost of $71,975, expected net cash inflows of $14,000 per year for 10 years, and a cost of capital of 10%. What is the project's PI? Do not round your intermediate calculations. Round your answer to two decimal places.
A project has an initial cost of $74,125, expected net cash inflows of $14,000 per year...
A project has an initial cost of $74,125, expected net cash inflows of $14,000 per year for 12 years, and a cost of capital of 9%. What is the project's NPV? (Hint: Begin by constructing a time line.) Do not round your intermediate calculations. Round your answer to the nearest cent.
1) A project has an initial cost of $65,350, expected net cash inflows of $14,000 per...
1) A project has an initial cost of $65,350, expected net cash inflows of $14,000 per year for 11 years, and a cost of capital of 8%. What is the project's NPV? (Hint: Begin by constructing a timeline.) Do not round intermediate calculations. Round your answer to the nearest cent
A project has an initial cost of $53,775, expected net cash inflows of $14,000 per year...
A project has an initial cost of $53,775, expected net cash inflows of $14,000 per year for 6 years, and a cost of capital of 8%. What is the project's NPV? (Hint: Begin by constructing a time line.) Do not round your intermediate calculations. Round your answer to the nearest cent.
A project has an initial cost of $60,000, expected net cash inflows of $14,000 per year...
A project has an initial cost of $60,000, expected net cash inflows of $14,000 per year for 7 years, and a cost of capital of 13%. What is the project's discounted payback period? (Hint: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to two decimal places. years
NPV A project has an initial cost of $70,000, expected net cash inflows of $14,000 per...
NPV A project has an initial cost of $70,000, expected net cash inflows of $14,000 per year for 11 years, and a cost of capital of 14%. What is the project's NPV? (Hint: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to the nearest cent.
A project has an initial cost of $54,300, expected net cash inflows of $14,000 per year...
A project has an initial cost of $54,300, expected net cash inflows of $14,000 per year for 9 years, and a cost of capital of 13%. What is the project's payback period? Round your answer to two decimal place
1. Capital expenditure for a complete new investment is $ 120,000,000; the expected annual net cash...
1. Capital expenditure for a complete new investment is $ 120,000,000; the expected annual net cash flows generated from investment are given below. Suppose that the company’s cost of capital is 10%, calculate and comment the payback period of the project. Years Cash flows ($000) (DF 10%) 1 40,000 0.909 2 42,000 0.826 3 50,000 0.751 4 52,000 0.683 5 55,000 0.621 SV 60,000 0.565
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT