Question
In: Finance
A firm evaluates all of its projects by using the NPV decision rule. Year Cash...
| A firm evaluates all of its projects by using the NPV decision rule. |
| Year | Cash Flow | ||
| 0 | –$31,000 | ||
| 1 | 22,000 | ||
| 2 | 12,000 | ||
| 3 | 7,000 | ||
| a. At a required return of 13 percent, what is the NPV for this project? |
| b. At a required return of 40 percent, what is the NPV for this project? |
Solutions
jeff jeffy answered 2 years agoRelated Solutions
A firm evaluates all of its projects by using the NPV decision rule. Year Cash...
A firm evaluates all of its projects by using the NPV decision
rule.
Year
Cash
Flow
0
–$28,000
1
20,000
2
13,000
3
4,000
Required:
(a)
At a required return of 23 percent, what is the NPV for this
project?
(Click to
select) -1,017.48 -997.53 -957.63 -1,047.41 -977.58
(b)
At a required return of 36 percent, what is the NPV for this
project?
(Click to
select) -4,581.89 -4,768.91 -4,909.17 -4,488.39 -4,675.4
A firm evaluates all of its projects by using the NPV decision rule. Year Cash Flow...
A firm evaluates all of its projects by using the NPV decision
rule. Year Cash Flow 0 –$28,000 1 21,000 2 14,000 3 9,000 a. At a
required return of 24 percent, what is the NPV for this project? b.
At a required return of 40 percent, what is the NPV for this
project?
A firm evaluates all of its projects by using the NPV decision rule. Year Cash Flow...
A firm evaluates all of its projects by using the NPV decision
rule.
Year Cash Flow
0 –$30,000
1 18,000
2 17,000
3 10,000
a. At a required return of 13 percent, what is the NPV for this
project?
6173
6482
5926
6297
6050
b. At a required return of 35 percent, what is the NPV for this
project?
-3438.12
-3143.42
-3339.89
-3208.91
-3274.40
A firm evaluates all of its projects by using the NPV decision rule. At a required...
A firm evaluates all of its projects by using the NPV decision
rule. At a required return of 12 percent, the NPV for the following
project is $ and the firm should the project. At a required return
of 31 percent, the NPV is $ and the firm should the project. (Do
not include the dollar signs ($). Negative amounts should be
indicated by a minus sign. Round your answers to 2 decimal places.
(e.g., 32.16))
Year Cash Flow
0...
A firm evaluates all of its projects by applying the NPV decision rule. A project under...
A firm evaluates all of its projects by applying the NPV
decision rule. A project under consideration has the following cash
flows:
Year
Cash Flow
0
–$
27,400
1
11,400
2
14,400
3
10,400
What is the NPV for the project if the required return is 12
percent? (Do not round intermediate calculations and round
your answer to 2 decimal places, e.g., 32.16.)
NPV
$
At a required return of 12
percent, should the firm accept...
A firm evaluates all of its projects by applying the NPV decision rule. A project under...
A firm evaluates all of its projects by applying the NPV
decision rule. A project under consideration has the following cash
flows:
Year
Cash Flow
0
–$
28,600
1
12,600
2
15,600
3
11,600
What is the NPV for the project if the required return is 11
percent? (Do not round intermediate calculations and round
your answer to 2 decimal places, e.g., 32.16.)
At a required
return of 11 percent, should the firm accept this project?
Yes
No...
1. A firm evaluates all of its projects by applying the NPV decision rule. A project...
1.
A firm evaluates all of its projects by applying the NPV
decision rule. A project under consideration has the following cash
flows:
Year
Cash Flow
0
$
-34,000
1
15,000
2
17,000
3
13,000
If the NPV = $1.27, should the firm accept this project?
A) Yes
B) No
2.
If the NPV of the above project is as stated above, how much
value does it add to the firm, compared to investing in an
Opportunity Cost Investment project?...
A firm evaluates all of its projects by applying the NPV decision rule. A project under...
A firm evaluates all of its projects by applying the NPV
decision rule. A project under consideration has the following cash
flows:
Year
Cash Flow
0
$
-27,700
1
11,700
2
14,700
3
10,700
What is the NPV for the project if the required return is 12
percent? (Do not round intermediate calculations and round
your answer to 2 decimal places, e.g., 32.16.)
At a required return of 12 percent, should the firm accept this
project?
Yes...
A firm evaluates all of its projects by applying the NPV decision rule. A project under...
A firm evaluates all of its projects by applying the NPV
decision rule. A project under consideration has the following cash
flows: Year Cash Flows 0 -3477 1 1468 2 2290 3 1948 What is the NPV
for the project if the required return is 11 percent? (Negative
amount should be indicated by a minus sign. Do not round
intermediate calculations and round your final answer to 2 decimal
places. (e.g., 32.16))
A firm evaluates all of its projects by applying the NPV decision rule. A project under...
A firm evaluates all of its projects by applying the NPV
decision rule. A project under consideration has the following cash
flows:
Year
Cash Flow
0
–$
28,800
1
12,800
2
15,800
3
11,800
What is the NPV for the project if the required return is 10
percent? (Do not round intermediate calculations and round
your answer to 2 decimal places, e.g., 32.16.)
NPV
$
At a required return of 10 percent, should the firm accept...
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