In periods 0-4, a project has the following cash flows: -3,000, 1000, 1000, 2,390, 500. Its...

In periods 0-4, a project has the following cash flows: -3,000, 1000, 1000, 2,390, 500.

Its cost of capital is 10 percent. What is the projects DISCOUNTED payback period?

Expert Solution

Ans 2.70 years

Year	Project Cash Flows (i)	DF@ 10%	DF@ 10% (ii)	PV of Project A ( (i) * (ii) )	Cumulative Cash Flow
0	-3000	1	1	(3,000.00)	(3,000.00)
1	1000	1/((1+10%)^1)	0.909	909.09	(2,090.91)
2	1000	1/((1+10%)^2)	0.826	826.45	(1,264.46)
3	2390	1/((1+10%)^3)	0.751	1,795.64	531.18
4	500	1/((1+10%)^4)	0.683	341.51	872.69
		NPV	872.69


Discounted Payback Period =		2 years + 1264.46/1795.64
		2.70 years

jeff jeffy answered 2 years ago

In periods 0-4, a project has the following cash flows: -3,000, 1000, 1000, 2,438, 500. Its...

In periods 0-4, a project has the following cash flows: -3,000, 1000, 1000, 2,438, 500. Its cost of capital is 10 percent. What is the projects DISCOUNTED payback period?

A company is considering a project that has the following cash flows: Co 3,000, C, +500,...

A company is considering a project that has the following cash flows: Co 3,000, C, +500, = +1,500, and C3 = +5,000, with a risk-adjusted discount rate of 15%. Calculate the Net Present Value (NPV), Internal Rate of Return (IRR), Profitability Index, and the Payback of this project. If you were the manager of the firm, will you accept or reject the project based on the calculation results above?

4. A project has the following cash flows Year Cash Flow 0 58000 1 -34000 2...

4. A project has the following cash flows Year Cash Flow 0 58000 1 -34000 2 -45000 a) What is the IRR for this project? If the required rate of return is 12%, should the firm accept the project? b) What is the NPV for this project? What is the NPV for the project if the required rate of return is 0%? 24%? What is going on here? Sketch the NPV profile to help with your answer

Yellow Day has a project with the following cash flows: Year Cash Flows 0 −$27,000 1...

Yellow Day has a project with the following cash flows: Year Cash Flows 0 −$27,000 1 10,550 2 20,300 3 9,720 4 −3,600 What is the MIRR for this project using the reinvestment approach? The interest rate is 7 percent

A project has the following cash flows : Year Cash Flows 0 −$12,000 1 5,290 2...

A project has the following cash flows : Year Cash Flows 0 −$12,000 1 5,290 2 7,630 3 5,040 4 −1,580 Assuming the appropriate interest rate is 10 percent, what is the MIRR for this project using the discounting approach? 19.21% 15.23% 13.96% 11.63% 17.77%

POD has a project with the following cash flows: Year Cash Flows 0 −$255,000 1 146,800...

POD has a project with the following cash flows: Year Cash Flows 0 −$255,000 1 146,800 2 164,300 3 129,400 The required return is 9.6 percent. What is the profitability index for this project?

POD has a project with the following cash flows: Year Cash Flows 0 −$263,000 1 146,400...

POD has a project with the following cash flows: Year Cash Flows 0 −$263,000 1 146,400 2 163,900 3 129,000 The required return is 9.2 percent. What is the profitability index for this project?

A project has the following cash flows : Year Cash Flows 0 −$11,700 1 5,110 2...

A project has the following cash flows : Year Cash Flows 0 −$11,700 1 5,110 2 7,360 3 4,800 4 −1,640 Assuming the appropriate interest rate is 7 percent, what is the MIRR for this project using the discounting approach?

A project has the following cash flows: Year Cash Flow 0 $ 43,500 1 – ...

A project has the following cash flows: Year Cash Flow 0 $ 43,500 1 – 22,500 2 – 33,500 a. What is the IRR for this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the NPV of this project, if the required return is 12 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round...

A project has annual cash flows of $3,000 for the next 10 years and then $6,000...

A project has annual cash flows of $3,000 for the next 10 years and then $6,000 each year for the following 10 years. The IRR of this 20-year project is 13.22%. If the firm's WACC is 12%, what is the project's NPV? Do not round intermediate calculations. Round your answer to the nearest cent. $

Question