Question

In: Finance

A project pays $500 at t=1 and 700 at t=7. Compute the NPV, IRR, Payback period...

  1. A project pays $500 at t=1 and 700 at t=7. Compute the NPV, IRR, Payback period of the project if it costs $700 today. Assume cost of capital is 10% where required.

Solutions

Expert Solution

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

Compute the IRR, NPV, PI, and payback period for the following two projects. Assume the required...
Compute the IRR, NPV, PI, and payback period for the following two projects. Assume the required return is 12%. Cashflow for each year Project A : Year 0= -2500 Year 1=900 Yaer 2=800 Year 3=1600 Year 4=100 Yaer 5=50 Year 6= 300 Project B Year 0 =-2500 Year 1=50 Year2= 600 Year 3=150 Year 4=900 Year 5= 500 Year 6=2500
IN EXCEL< SHOW THE FORMULAS > Determine the Payback period, NPV and IRR for both project...
IN EXCEL< SHOW THE FORMULAS > Determine the Payback period, NPV and IRR for both project A and B (show work). Which Project would you select and why? Be specific. Project A will require an initial investment of $ 200,000 and Project B will require and initial investment of $ 325,000. The cost of capital for both projects is 12%. The cash inflows for the next 5 years are listed below: Project A Project B 0 ($200,000) ($325,000) 1 $50,000...
. For each project, calculate the NPV, IRR, profitability index (PI) and the payback period. For...
. For each project, calculate the NPV, IRR, profitability index (PI) and the payback period. For each capital budgeting decision tool, indicate if the project should be accepted or rejected, assuming that each project is independent of the others. Important Note: The venture capital folks have a firm maximum payback period of four years.          Project A= Required rate of Return= 16.30% Project B= R= 12.50% Project C= R= 15.35% Project D= R= 17.25%      Expected cash flows for the four...
Calculations of the NPV, IRR and the payback for the project and an analysis of the...
Calculations of the NPV, IRR and the payback for the project and an analysis of the results. I need the excel formula calculation and analysis of the questions You have identified a potential opportunity for WBC, which involves undertaking a project that will have a ten-year life. The project requires an initial purchase of equipment and furniture totalling $4,500,000, plus ancillary programming capability and machinery costing $1,500,000. The equipment and furniture will depreciate and have a salvage value of $500,000...
(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​?
For each project, calculate the NPV, IRR, profitability index (PI) and the payback period. For each...
For each project, calculate the NPV, IRR, profitability index (PI) and the payback period. For each capital budgeting decision tool, indicate if the project should be accepted or rejected, assuming that each project is independent of the others. Important Note: The venture capital folks have a firm maximum payback period of four years. Risk free rate = 1.10%, MRP = 9.5%, Required return = 14.40% Yes excel is fine Expected cash flows for the four potential projects that Avalon is...
(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​?
What is the payback period, NPV, IRR of A. Using this information, should we accept Project...
What is the payback period, NPV, IRR of A. Using this information, should we accept Project A. Why or why not. Given the following information answer the question above. The discount rate is 10 percent.      PROJECT A       t           Cash Flow       0          (150,000)        1          40,000           2          40,000              3          40,000          4           40,000           5            40,000               ROUND TO NEAREST DOLLAR OR TEN %
​(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​?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT