Question
In: Finance
Calculate the net present value (NPV) for a 1515-year project with an initial investment of $45...
Calculate the net present value
(NPV)
for a
1515-year
project with an initial investment of
$45 comma 00045,000
and a cash inflow of
$7 comma 0007,000
per year. Assume that the firm has an opportunity cost of
1515%.
Comment on the acceptability of the project.
The project's net present value is
$nothing.
(Round to the nearest cent.)
Solutions
jeff jeffy answered 2 years agoRelated Solutions
NPV Calculate the net present value for a 25-year project with an initial investment of $50,000...
NPV Calculate the net present value for a 25-year
project with an initial investment of $50,000
and a cash inflow of $8,000 per year. Assume that the firm has
an opportunity cost of 18%.
Comment on the acceptability of the project.
(a) Calculate the net present value (NPV) of a project which requires an initial investment of...
(a) Calculate the net present value (NPV) of a project which
requires an initial investment of $243,000 and it is expected to
generate a cash inflow of $58,000 each month for 12 months. Assume
that the salvage value of the project is zero. The target rate of
return is 12 % per annum.
(b) An initial investment of $8,720 thousand (i.e. × 1,000) on
plant and machinery is expected to generate cash inflows of $3,411
thousand, $4,070 thousand, $5,824 thousand...
Find the net present value (NPV) of a project that requires an initial investment of $110,000...
Find the net present value (NPV) of a project that requires an
initial investment of $110,000 and provides cash flows of $13,500
per year for 15 years? The investor’s required return is 18.5%.
17. Find the net present value (NPV) of a project that requires an initial investment of...
17. Find the net present value (NPV) of a project that requires
an initial investment of $100,000 and provides cash flows of
$14,000 per year for 12 years? The investor’s required return is
11%.
Calculate the Net Present Value of a project, which requires an initial investment of $399000 and...
Calculate the Net Present Value of a project, which requires an
initial investment of $399000 and it is expected to generate a cash
inflow of $29000 each month for 12 months. Assume that the salvage
value of the project is zero. The target rate of return is 11% per
annum. Write the formula and calculate NPV. Justify the result.
Q4. (a) Mr. Yasser Al Harthi, has a Dell Laptop. His laptop has
some problems in the motherboard unit, so it...
What is the net present value (NPV) of a project that has an initial cash outflow...
What is the net present value (NPV) of a project that has an
initial cash outflow of $19,851, at time 0, and the following cash
inflows? The required return is 13.0%. DO NOT
USE DOLLAR SIGNS OR COMMAS IN YOUR ANSWER. ROUND ANSWER TO THE
NEAREST DOLLAR.
Year
Cash Flow
1
$5,423
2
$7,483
3
$7,107
4
$6,010
Calculate the Profitability Index and the Net Present Value of the following project: Year 0 Investment...
Calculate the Profitability Index and the Net Present Value of
the following project:
Year 0 Investment 75,000
Year 1 Income 25,000 PI ______________
Year 2 Income 35,000
Year 3 Investment 10,000 NPV ____________
Year 4 Income 40,000
Discount Rate 9% Go or No Go?
What is the net present value of a project that requires an initial investment of $76,000...
What is the net present value of a project that requires an
initial investment of $76,000 and produces net cash flows of
$22,000 per year for 7 years? Assume the discount rate is 15
percent.
a.
$91,520
b.
$15,520
c.
$78,000
d.
$167,474
Using a discount rate of 14 percent, calculate the net present value (NPV) of the proposed investment.
Beacon Company is considering automating its production facility. The initial investment in automation would be $9.40 million, and the equipment has a useful life of 8 years with a residual value of $1,000,000. The company will use straight-line depreciation. Beacon could expect a production increase of 38,000 units per year and a reduction of 20 percent in the labor cost per unit.
Current (no automation)
Proposed (automation)
77,000 units
115,000 units
Production and sales volume
Per Unit
Total...
The NPV (net present value) of Plan Alpha is $ (130,539) The NPV (net present value)...
The
NPV (net present value) of Plan Alpha is $
(130,539)
The
NPV (net present value) of Plan Beta is $
233,001
The
IRR (internal rate of return) of Plan Alpha is $
19.36
%.
The
IRR (internal rate of return) of Plan Beta is $
21.25
%.
Which plan, if
any, should
the company pursue?
Based on the results above, the company
should pursue
Plan Beta
because
the NPV is
positive
and
the IRR is
greater than
the
company's...
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