Question
In: Finance
A project pays $500 at t=1 and 700 at t=7. Compute the NPV, IRR, Payback period...
- 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
jeff jeffy answered 1 year agoRelated 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...
(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?
(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
- choose one of the developmental theories (phychosexual-freud, psychosocial-eirkson, cognitive-piaget, or moral development-kohlberg) and exlain when and...
- 1. Why do some people resist the goal of becoming world class? How can this resistance...
- ATestforPrimalityisthefollowing: Given an integer n > 1, to test whether n is prime check to see...
- I have extra columns with data showing up in my pivot table. How can I get...
- In your own words, discuss The Fourth Amendment. How are new areas of technology impacted by...
- Elsa is a data analytics intern at a financial firm. Her company has obtained their customers...
- 30% 3) Calculate the fraction of total 2,3,4,5-tetrachlorophenol (organic acid) that is present in the water...
ADVERTISEMENT