Question
In: Accounting
you are analyzing a project and have this data : year : cash flow 0. :...
you are analyzing a project and have this data :
year : cash flow
0. : -40,000
1 : 18,675
2 : 23,900
3. : 21,750
required rate of return = 13 % target payback = 2.0 years
point:1+ 1.5 +1.5 + 2
compute following :
a) pay back period
b) discounted pay back period
c) NPV
D) IRR OF THIS PROJECT
E) ACCEPT OR REJECT PROJECT
Solutions
ekkarill92 answered 1 year agoRelated Solutions
You are analyzing a project with the following cash flows: Year 0: -240,000 Year 1: +...
You are analyzing a project with the following cash flows:
Year 0: -240,000
Year 1: + 10,000
Year 2: + 55,000
Year 3: +100,000
Year 4: +380,000
What is the NPV for this project, using a 15% discount rate?
Multiple Choice
The Project has an NPV of $69,281
The Project has an NPV of $58,445
The Project has an NPV of $70,617
The Project has an NPV of $93,301
What is the IRR for this project?
Multiple Choice
The Project...
Here is project Y: The cash flow in year 0 is negative $23,000. The cash flow...
Here is project Y:
The cash flow in year 0 is negative
$23,000.
The cash flow in year 1 is $32,000.
The cash flow in year 2 is $26,000.
The cash flow in year 3 is negative
$12,000.
Here is project Z:
The cash flow in year 0 is negative
$42,000.
The cash flow in year 1 is $58,000.
The cash flow in year 2 is $39,000.
The cash flow in year 3 is negative
$35,000.
Your decision rule is...
Spence Company is considering a project that has the following cash flow data, Year 0: -$1000,...
Spence Company is considering a project that has the following
cash flow data,
Year 0: -$1000, Year 1-5: $350 each, Year 6: -$300.
The company is using a WACC of 8%.
What is the NPV of the project .
What is the IRR of the project?
What’s the discounted payback of the project
Consider the following two projects: Project Year 0 Cash Flow Year 1 Cash Flow Year 2...
Consider the following two projects:
Project
Year 0
Cash Flow
Year 1
Cash Flow
Year 2
Cash Flow
Year 3
Cash Flow
Year 4
Cash Flow
Discount Rate
A
-100
40
50
60
N/A
.15
B
-73
30
30
30
30
.15
Assume that projects A and B are mutually exclusive. The correct
investment decision and the best rational for that decision is
to:
Group of answer choices
a.invest in project A since NPVB < NPVA.
b.invest in project B...
There is a project with the following cash flows : Year Cash Flow 0 −$21,800 1...
There is a project with the following cash flows :
Year
Cash Flow
0
−$21,800
1
6,300
2
7,350
3
6,750
4
4,400
What is the payback period?
Multiple Choice
a. 4.00 years
b. 3.32 years
c. 3.74 years
d. 3.56 years
e. 2.79 years
There is a project with the following cash flows : Year Cash Flow 0 −$23,700 1...
There is a project with the following cash flows :
Year
Cash Flow
0
−$23,700
1
7,000
2
7,700
3
7,100
4
5,100
What is the payback period?
Multiple Choice
2.73 years
4.00 years
3.81 years
3.63 years
3.37 years
You are analysing a project and have prepared the following data: Year Cash flows 0 -$275,000 &nbs
You are analysing a project and have prepared the following
data:
Year Cash
flows
0
-$275,000
1
$
50,000
2
$
75,000
3
$
95,000
4
$
15,000
Required payback period 3 years
Required rate of return 5%
a) Determine the project’s Profitability Index, Internal Rate of
Return, NPV and Discounted Payback
Period
[40
Marks]
b) Decide whether accept the project based on the above
investment decision
criteria? [5
Marks] [Total: 45 Marks]
Please provide full steps (No excel...
RAK Corp. is evaluating a project with the following cash flows: Year Cash Flow 0...
RAK Corp. is evaluating a
project with the following cash flows:
Year
Cash Flow
0
–$
28,600
1
10,800
2
13,500
3
15,400
4
12,500
5
–
9,000
The company uses a discount rate
of 13 percent and a reinvestment rate of 6 percent on all of its
projects.
Calculate the MIRR of the project using the discounting
approach. (Do not round intermediate calculations. Enter
your answer as a percent rounded to 2 decimal places, e.g.,
32.16.)...
Mittuch Corp. is evaluating a project with the following cash flows: Year Cash Flow 0 –$...
Mittuch Corp. is evaluating a project with the following cash
flows: Year Cash Flow 0 –$ 15,400 1 6,500 2 7,700 3 7,300 4 6,100 5
–3,500 The company uses an interest rate of 8 percent on all of its
projects. Calculate the MIRR of the project using all three
methods. (Do not round intermediate calculations and enter your
answers as a percent rounded to 2 decimal places, e.g., 32.16.)
MIRR Discounting approach % Reinvestment approach % Combination
approach %
RAK Corp. is evaluating a project with the following cash flows: Year Cash Flow 0...
RAK Corp. is evaluating a
project with the following cash flows:
Year
Cash Flow
0
–$
29,500
1
11,700
2
14,400
3
16,300
4
13,400
5
–
9,900
The company uses a discount rate
of 13 percent and a reinvestment rate of 6 percent on all of its
projects.
1. Calculate the MIRR of the project using the discounting
approach. (Do not round intermediate calculations. Enter
your answer as a percent rounded to 2 decimal places, e.g.,...
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