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
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a.
$91,520
b.
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c.
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Current (no automation)
Proposed (automation)
77,000 units
115,000 units
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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
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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...
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