A project has the following cash flow. Years Costs Benefits 0 $10,000 0 1 $1,000 $5,000...

A project has the following cash flow.

Years	Costs	Benefits
0	$10,000	0
1	$1,000	$5,000
2	$1,000	$5,000
3	$2,000	$6,000
4	$20,000	$3,000 a) Find net present value b) Discounted Benefit-Cost Ratio c)Net discounted Benefit-Cost Ratio discount ratio is 10%

Expert Solution

Year	Cost	Benefits	Total	DF	PV
0	$ -10,000.00	$ -	$ -10,000.00	1	$ -10,000.00
1	$ -1,000.00	$ 5,000.00	$ 4,000.00	0.900901	$ 3,603.60
2	$ -1,000.00	$ 5,000.00	$ 4,000.00	0.811622	$ 3,246.49
3	$ -2,000.00	$ 6,000.00	$ 4,000.00	0.731191	$ 2,924.77
4	$ -20,000.00	$ 3,000.00	$ -17,000.00	0.658731	$ -11,198.43

				NPV	$ -11,423.57

Year	Cost	Benefits	Total	DF	PV	DV Benefit	DV costs
0	$ -10,000.00	$ -	$ -10,000.00	1	$ -10,000.00	$ -	$ -10,000.00
1	$ -1,000.00	$ 5,000.00	$ 4,000.00	0.900901	$ 3,603.60	$ 4,504.50	$ -900.90
2	$ -1,000.00	$ 5,000.00	$ 4,000.00	0.811622	$ 3,246.49	$ 4,058.11	$ -811.62
3	$ -2,000.00	$ 6,000.00	$ 4,000.00	0.731191	$ 2,924.77	$ 4,387.15	$ -1,462.38
4	$ -20,000.00	$ 3,000.00	$ -17,000.00	0.658731	$ -11,198.43	$ 1,976.19	$ -13,174.62

				NPV	$ -11,423.57	$ 14,925.96	$ 26,349.53

						Ratio	0.566460213
						Net benefits cost ratio	-0.43353979

jeff jeffy answered 1 year ago

1. A project has the following cash flow. Year Costs Benefits 0 $10,000 0 1 0...

1. A project has the following cash flow. Year Costs Benefits 0 $10,000 0 1 0 $5,000 2 $1,000 $5,000 3 0 $3,000 Assuming a discount rate of 10%, estimate the following: a) Net Present Value (NPV) b) Discounted Benefit-Cost Ratio c) Net discounted Benefit-Cost Ratio d) Is the project feasible? Explain your answer

A hospital’s project has the following expected cash flows Year Cash flow 0 ($5,000) 1 $1,000...

A hospital’s project has the following expected cash flows Year Cash flow 0 ($5,000) 1 $1,000 2 $2,000 3 $3,000 If the cost of capital is 12%, should the project be undertaken? Show your calculations

Calculate the following project, at cost of capital of 10% Years Cash Flow (RM) 0 -10,000...

Calculate the following project, at cost of capital of 10% Years Cash Flow (RM) 0 -10,000 1 2000 2 2000 3 4000 4 4000 5 5000 i) calculate NPV (8marks) ii) calculate PI iii) Justified should we accept or reject the project?

A project has expected cash flows of -$1,000, $2,500, and -$1,540 in years 0, 1, and...

A project has expected cash flows of -$1,000, $2,500, and -$1,540 in years 0, 1, and 2, respectively. The cost of capital is 15%. a. Construct an NPV profile using interest rates of 0, 10, 20, 30, 40, 50, and 60%. b. What is the IRR of the project?

*Two part question A proposed project has the following costs and benefits: Year Costs Benefits 0...

*Two part question A proposed project has the following costs and benefits: Year Costs Benefits 0 2,000 1 1,000 2 1,000 3 1,000 4 2,000 5 2,000 Assuming an interest rate of 10%, the project's simple payback period is most nearly _________. A. 2 years B. 4 years C. 6 years D. 5 years E. 7 years Using the information from the problem above and linear interpolation, the project's discounted payback period is most nearly ___________. A. 3.62 years B....

A project has the following cash flows: Year Cash Flow 0 $ 40,000 1 – 19,000...

A project has the following cash flows: Year Cash Flow 0 $ 40,000 1 – 19,000 2 – 30,000 What is the IRR for this project? What is the NPV of this project, if the required return is 11 percent? What is the NPV of the project if the required return is 0 percent? What is the NPV of the project if the required return is 22 percent?

A project has the following cash flows: Year Cash Flow 0 $ 47,000 1 – 26,000...

A project has the following cash flows: Year Cash Flow 0 $ 47,000 1 – 26,000 2 – 37,000 What is the IRR for this project? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) IRR % What is the NPV of this project, if the required return is 12 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2...

A project has the following cash flows: Year Cash Flow 0 $ 42,000 1 – 21,000...

A project has the following cash flows: Year Cash Flow 0 $ 42,000 1 – 21,000 2 – 32,000 What is the IRR for this project? (Round your answer to 2 decimal places. (e.g., 32.16)) IRR % What is the NPV of this project, if the required return is 12 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) NPV $ What is...

Project Y has following cash flows: C 0 = -800, C 1 = +5,000, and C 2 = -5,000....

Project Y has following cash flows: C 0 = -800, C 1 = +5,000, and C 2 = -5,000. Calculate the IRRs for the project. 25 percent and 400 percent. 125 percent and 500 percent. -44 percent and 11.6 percent. No IRRs exist for this project.

An investment project cost $10,000 and has an annual cash flow of $2870 for six years....

An investment project cost $10,000 and has an annual cash flow of $2870 for six years. what is the discounted payback. If the discount rate is 0% what is the discounted payback. If the discount rate is 5% what is the discount and pay back. If the discount rate is 20%

Question