Question
In: Finance
Using a cost of capital of 11%, calculate the net present value for the project shown...
Using a cost of capital of 11%, calculate the net present value for the project shown in the following table and indicate whether it is acceptable,
| Initial investment
(CF 0CF0) |
negative $−$1149 |
|
| Year
(t) |
Cash inflows
(CF Subscript tCFt) in thousands |
|
|
1 |
$8080 |
|
|
2 |
$130 |
|
|
3 |
$189 |
|
|
4 |
$256 |
|
|
5 |
$312 |
|
|
6 |
$376 |
|
|
7 |
$280 |
|
|
8 |
$102 |
|
|
9 |
$42 |
|
|
10 |
$20 |
|
The net present value (NPV) of the project is $-75,817.60. (Round to the nearest cent.) Is the project acceptable?
Solutions
Expert Solution
As the NPV is negative it is not recommended to invest in this project
Considered $80000 in Year 1 Cash Flows
Please upvote if satisfied
jeff jeffy answered 2 years agoRelated Solutions
Using a cost of capital of 11%, calculate the net present value for the project shown...
Using a cost of capital of 11%, calculate the net present value
for the project shown in the following table and indicate whether
it is acceptable
Initial investment
(CF 0CF0)
-$1149
Year
(t)
Cash inflows
(CF Subscript tCFt)
in thousands
1
$80
2
$130
3
$189
4
$256
5
$312
6
$376
7
$280
8
$102
9
$42
10
$20
Using a cost of capital of 13%, calculate the net present value for the project shown...
Using a cost of capital of 13%, calculate the net present value
for the project shown in the following table and indicate whether
it is acceptable, LOADING.... The net present value (NPV) of the
project is $
Initial investment -1,151,000
Year Cash inflows
1 84,000
2 136,000
3 192,000
4 255,000
5 318,000
6 382,000
7 277,000
8 100,000
9 42,000
10 25,000
Using a cost of capital of 15%, calculate the net present value for the project shown...
Using a cost of capital of 15%, calculate the net present value
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Initial investment $-1,145
Year Cash inflows
1 $76
2 $132
3 $185
4 $256
5 $316
6 $383
7 $277
8 $98
9 $43
10 $25
The net present value (NPV) of the project is $_____
Please show all work and what inputs would be in a financial
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Net present value Using a cost of capital of 11%, calculate the net present value for...
Net present value Using a cost of capital of
11%, calculate the net present value for the project
shown in the following table and indicate whether it is
acceptable,
Initial investment
(CF
0CF0)
negative 1 comma 143 comma 000−1,143,000
Year
(t)
Cash inflows
(CF Subscript
tCFt)
1
$81,000
2
$138,000
3
$193,000
4
$258,000
5
$311,000
6
$377,000
7
$270,000
8
$98,000
9
$45,000
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$29,000
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Project B
Project C
Project D
Project E
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$500,000
$170,000
$950,000
$80,000
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$4,000
$100,000
$20,000
$230,000
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4,000
120,000
19,000
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140,000
18,000
230,000
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160,000
17,000
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Net present value. Independent projects Using a 14% cost of capital, calculate the net present value...
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Project B
Project C
Project D
Project E
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$500,000
$170,000
$950,000
$80,000
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1
$4,000
$100,000
$20,000
$230,000
$ 0
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4,000
120,000
19,000
230,000
0
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4,000
140,000
18,000
230,000
0
4
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160,000
17,000
230,000
20,000
5
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Project B
Initial Cash Outflow
$200,000
$160,000
Year 1 Cash flow
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80,000
Year 2 Cash flow
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80,000
Year 3 Cash flow
85,000
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Project N
Initial Cash Outflow
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-$260,000
Year 1 Cash flow
19,000
185,000
Year 2 Cash flow
121,000
85,000
Year 3 Cash flow
185,000
55,000
a.
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