Question
In: Finance
What is NPV, IRR, PI, MIRR of a project with the following cash flows if the...
What is NPV, IRR, PI, MIRR of a project with the following cash flows if the discount rate is 14 percent?
|
Year |
CF |
|
0 |
-18,000 |
|
1 |
5000 |
|
2 |
7500 |
|
3 |
8400 |
|
4 |
2100 |
Also upload your excel files showing your work.
Solutions
Expert Solution
PI = Present Value of Future Cash Inflows / Initial Investment
= $17,070.10069 / $18,000
= 0.948338933
PI of the project is 0.95
MIRR = (FutureValue of Future Cash Inflows / Present Value of Cash Outflows)^(1/n) - 1
= ( $28,830.72/ $18,000)^(1/4) - 1
= (1.601706667)^(0.25) - 1
= 1.124982446 - 1
= 0.124982446
= 12.50%
MIRR of the project is 12.50%
jeff jeffy answered 1 year agoRelated Solutions
Use the following cash flows to calculate the NPV, IRR, PI. The firm's WACC is 6%....
Use the following cash flows to calculate the NPV, IRR, PI. The
firm's WACC is 6%. Y0 = ($1,500), Y1= $600, Y2 = $700, Y3 = $500.
Determine which statement is true.
a) NPV = 108.84; IRR = 9.99%; PI = 1.07
b) NPV = 108.84; IRR = 10.47%; PI = 1.07
c) NPV = 108.84; IRR = 9.99%; PI = 0.0726
d) NPV = 300; IRR = 9.99%; PI = 1.20
Please Explain
Apple's Project NPV ($) 10,258 IRR (%) 13 MIRR (%) 10 PI 1.5 Payback (Years) 3...
Apple's Project
NPV ($)
10,258
IRR (%)
13
MIRR (%)
10
PI
1.5
Payback (Years)
3
Discounted Payback (years)
3.5
Apple's cost of capital is 9%. Its critical payback and
discounted payback periods are 2 and 2.5. Should the project be
accepted or not.
NPV - (Accept or Do Not Accept)
IRR - (Accept or Do Not Accept)
MIRR - (Accept or Do Not Accept)
PI - (Accept or Do Not Accept)
Payback - (Accept or Do Not Accept)
Discounted...
Please calculate the payback period, IRR, MIRR, NPV, and PI for the following two mutually exclusive...
Please calculate the payback period, IRR, MIRR, NPV, and PI for
the following two mutually exclusive projects. The required rate of
return is 15% and the target payback is 4 years. Explain which
project is preferable under each of the four capital budgeting
methods mentioned above:
Table 1
Cash flows for two mutually exclusive projects
Year
Investment A
Investment B
0
-$5,000,000
-5,000,000
1
$1,500,000
$1,250,000
2
$1,500,000
$1,250,000
3
$1,500,000
$1,250,000
4
$1,500,000
$1,250,000
5
$1,500,000
$1,250,000
6
$1,500,000...
Please calculate the payback period, IRR, MIRR, NPV, and PI for the following two mutually exclusive...
Please calculate the payback period, IRR, MIRR, NPV, and
PI for the following two mutually exclusive projects. The required
rate of return is 15% and the target payback is 4 years. Explain
which project is preferable under each of the four capital
budgeting methods mentioned above:
Table 1
Cash flows for two mutually exclusive
projects
Year
Investment A
Investment B
0
-$5,000,000
-5,000,000
1
$1,500,000
$1,250,000
2
$1,500,000
$1,250,000
3
$1,500,000
$1,250,000
4
$1,500,000
$1,250,000
5
$1,500,000
$1,250,000
6
$1,500,000...
NPV, PI, and IRR calculations) You are considering a project with an initial cash outlay of...
NPV, PI, and IRR calculations) You are considering a project
with an initial cash outlay of $70,000 and expected free cash
flows of $28,000 at the end of each year for 6 years. The required
rate of return for this project is 7 percent.
a. What is the project's payback period?
b. What is the project's NPV?
c. What is the project's PI?
d. What is the project's IRR?
(Payback period, NPV, PI, and IRR calculations) You are considering a project with an initial cash...
(Payback
period, NPV, PI, and IRR
calculations)
You are considering a project with an initial cash outlay of
$90,000
and expected free cash flows of
$28,000
at the end of each year for
5
years. The required rate of return for this project is
6
percent.
a. What is the project's payback period?
b. What is the project's
NPV?
c. What is the project's
PI?
d. What is the project's
IRR?
(Payback period, NPV, PI, and IRR calculations) You are considering a project with an initial cash...
(Payback period, NPV, PI, and IRR calculations) You are
considering a project with an initial cash outlay of $80000 and
expected free cash flows of $25000 at the end of each year for 6
years. The required rate of return for this project is 9
percent.
a. What is the project's payback period?
b. What is the project's NPV?
c. What is the project's PI?
d. What is the project's IRR?
(Payback period, NPV, PI, and IRR calculations) You are considering a project with an initial cash...
(Payback period, NPV, PI, and IRR calculations) You are
considering a project with an initial cash outlay of $70,000 and
expected free cash flows of $28,000 at the end of each year for 5
years. The required rate of return for this project is 8
percent.
a. What is the project's payback period?
b. What is the project's NPV?
c. What is the project's PI?
d. What is the project's IRR?
(Payback period, NPV, PI, and IRR calculations) You are considering a project with an initial cash...
(Payback period, NPV, PI, and IRR calculations) You are
considering a project with an initial cash outlay of $90,000 and
expected free cash flows of $22,000 at the end of each year for 7
years. The required rate of return for this project is 9
percent.
a. What is the project's payback period?
b. What is the project's NPV?
c. What is the project's PI?
d. What is the project's IRR?
(Payback period, NPV, PI, and IRR calculations) You are considering a project with an initial cash...
(Payback period, NPV, PI, and IRR calculations) You are
considering a project with an initial cash outlay of $90,000 and
expected free cash flows of $26,000 at the end of each year for 6
years. The required rate of return for this project is 6
percent.
a. What is the project's payback period?
b. What is the project's NPV?
c. What is the project's PI?
d. What is the project's IRR?
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- What is the history of healthcare reform? What are the key provisions of the Affordable Care...
- If a mutation prevented the synthesis of any of the linker proteins, what step(s) in meiosis...
- Southwestern Wear Inc. has the following balance sheet: Current assets $1,875,000 Accounts payable $ 375,000 Fixed assets...
- Write the volume in m3 will 2.50 kg of nitrogen (N2) occupy at 450 Kelvin and...
- ANALYSING A SPREADSHEET AND PRESENTING A BUSINESS REPORT Case Study Pink Lady Apple Orchard is a...
- An automobile is traveling on a long, straight highway at a steady 75.0 m/h when the...
- Give the net ionic equations for the following: a. AgCl + ZnCl2 b. PbCl2 + Hg2Cl2...
ADVERTISEMENT