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
(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...
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...
1. What is the net present value (NPV) of the project? 2. Based on this NPV,...
1. What is the net present value (NPV) of the project?
2. Based on this NPV, should Hasbro undertake this project?
3. What is the internal rate of return (IRR) of this project?
You can find IRR by varying the discount rate in your table until
NPV is zero. That new discount rate will be the IRR.
Your grade will be based on the completeness of your cash flow
table and calculations as well as your answers above.
Monopoly expansion...
1. What is the net present value (NPV) of the project? 2. Based on this NPV,...
1. What is the net present value (NPV) of the project?
2. Based on this NPV, should Hasbro undertake this project?
3. What is the internal rate of return (IRR) of this project?
You can find IRR by varying the discount rate in your table until
NPV is zero. That new discount rate will be the IRR.
Your grade will be based on the completeness of your cash flow
table and calculations as well as your answers above.
Monopoly expansion...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Use the bond term's below to answer the question Maturity 7 years Coupon Rate 4% Face...
- What experience have you had with Organization Development or with Change Management? Describe the organization, the...
- 1. Renfro Rentals has issued bonds that have a 12% coupon rate, payable semiannually. The bonds...
- Given an array of positive integers a, your task is to calculate the sum of every...
- Define “culture.” Software is defined by the Merriam-Webster Dictionary as "the programs that run on a...
- In humans, hypotrichosis (sparse body hair) is a rare autosomal recessive condition. Let h = hypotrichosis...
- Increase all of the listing prices by 5% for all listings under $500,000 and 10% for...
ADVERTISEMENT