Project L costs $40,000, its expected cash inflows are $11,000 per year for 8 years, and its WACC is 11%

Project L costs $40,000, its expected cash inflows are $11,000 per year for 8 years, and its WACC is 11%. What is the project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations.

$__

Solutions

Expert Solution

NPV = -Initial investment + Present value of cash flows

NPV = -$40,000 + $11,000/1.11 + $11,000/1.11^2 + $11,000/1.11^3 + $11,000/1.11^4 + $11,000/1.11^5 + $11,000/1.11^6 + $11,000/1.11^7 + $11,000/1.11^8

NPV = $16,607.35

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

Project L costs $53,716.57, its expected cash inflows are $11,000 per year for 11 years, and...

Project L costs $53,716.57, its expected cash inflows are $11,000 per year for 11 years, and its WACC is 11%. What is the project's IRR? Round your answer to two decimal places. ___%

Project L costs $52,093.65, its expected cash inflows are $11,000 per year for 11 years, and...

Project L costs $52,093.65, its expected cash inflows are $11,000 per year for 11 years, and its WACC is 9%. What is the project's IRR? Round your answer to two decimal places.

Project L costs $45,414.75, its expected cash inflows are $11,000 per year for 8 years, and...

Project L costs $45,414.75, its expected cash inflows are $11,000 per year for 8 years, and its WACC is 11%. What is the project's IRR? Round your answer to two decimal places. ____% Project L costs $75,000, its expected cash inflows are $13,000 per year for 9 years, and its WACC is 9%. What is the project's payback? Round your answer to two decimal places. ____ years Project L costs $40,000, its expected cash inflows are $9,000 per year for...

IRR Project L costs $56,993.01, its expected cash inflows are $11,000 per year for 11 years,...

IRR Project L costs $56,993.01, its expected cash inflows are $11,000 per year for 11 years, and its WACC is 11%. What is the project's IRR? Round your answer to two decimal places. %

Project L costs $40,000, its expected cash inflows are $9,000 per year for 8 years, and...

Project L costs $40,000, its expected cash inflows are $9,000 per year for 8 years, and its WACC is 11%. What is the project's discounted payback? Round your answer to two decimal places.

Project L costs $40,000, its expected cash inflows are $9,000 per year for 8 years, and...

Project L costs $40,000, its expected cash inflows are $9,000 per year for 8 years, and its WACC is 11%. What is the project's discounted payback? Round your answer to two decimal places. years

Project L costs $35,000, its expected cash inflows are $11,000 per year for 7 years, and...

Project L costs $35,000, its expected cash inflows are $11,000 per year for 7 years, and its WACC is 9%. What is the project's payback? Round your answer to two decimal places. ___years

Project L costs $51,295.68, its expected cash inflows are $11,000 per year for 9 years, and...

Project L costs $51,295.68, its expected cash inflows are $11,000 per year for 9 years, and its WACC is 10%. What is the project's IRR? Round your answer to two decimal places.

Project L costs $45,000, its expected cash inflows are $11,000 per year for 12 years, and...

Project L costs $45,000, its expected cash inflows are $11,000 per year for 12 years, and its WACC is 10%. What is the project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations.

Project K costs $50,000, its expected cash inflows are $11,000 per year for 11 years, and...

Project K costs $50,000, its expected cash inflows are $11,000 per year for 11 years, and its WACC is 12%. What is the project's NPV? Round your answer to the nearest cent. Project K costs $50,000, its expected cash inflows are $11,000 per year for 11 years, and its WACC is 12%. What is the project's NPV? Project K costs $68,499.16, its expected cash inflows are $14,000 per year for 11 years, and its WACC is 13%. What is the...

Subjects