Question

In: Finance

Use a discount rate of 8.50% and the following cash flows to test your formulas from...

Use a discount rate of 8.50% and the following cash flows to test your formulas from problem #1 to calculate NPV, IRR, MIRR, Payback Period, Discounted Payback Period, and Profitability Index

  • 0 : - $10,000
  • 1: $500
  • 2: $2,500
  • 3: $3,500
  • 4: - $1,000
  • 5: $5,000  

Using an excel spreadsheet only, with formulas.

Solutions

Expert Solution


Related Solutions

The following cash flows represent inflation adjusted (real) cash flows. If the nominal discount rate is...
The following cash flows represent inflation adjusted (real) cash flows. If the nominal discount rate is 20 percent and the inflation rate is 10 percent, which of the following is closest to the net present value of these cash flows? Year 0 1 2 3 4 CF (1,000) 591 537 488 444 Group of answer choices a. $362 b. $651 c. $682 d. $717
What is the PV of the following cash flows, assuming a 5% discount rate?
What is the PV of the following cash flows, assuming a 5% discount rate?Initial investment – year 0:  $(1,000,000)Year 1 cash flows: $100,000Year 2 cash flows: $100,000Year 3 cash flows: $100,000Year 4 -sale: $1,200,000
What is the present value of the following cash flows at a discount rate of 6%?...
What is the present value of the following cash flows at a discount rate of 6%? Years 1 – 5 $10,000 Years 6 – 10 $12,000 Years 11 – 20 $15,000 A. $109,896 B. $119,157 C. $141,544 D. $129,639 If a professor currently earns $80,000 per year and expects annual salary increases of 3%, approximately how long will the professor have to work before his/her annual salary reaches $500,000 per year? A. 62 years B. 49 years C. 101 years...
If the appropriate discount rate for the following cash flows is 13 percent, what is the...
If the appropriate discount rate for the following cash flows is 13 percent, what is the net present value of these cash flows assuming the initial cost is $700? Should you go through with this investment? YEAR CASH FLOW 0- $ -700 1- 100 2- 200 3- 300 4- 400
If the discount rate is 12%, what is the present value of the following cash flows:...
If the discount rate is 12%, what is the present value of the following cash flows: Year Cash Flow 1 $10,000 2 $11,000 3 $12,000 4 $13,000 5 $14,000 6-15 $15,000 each year a. $144,618 b. $90, 537 c. $127,923 d. $127,197
If the relevant discount rate for the following set of cash flows is 7 percent, the...
If the relevant discount rate for the following set of cash flows is 7 percent, the profitability index is . If the discount rate is 15 percent, the profitability index is . If the discount rate is 23 percent, the profitability index is . (Round your answers to 3 decimal places. (e.g., 32.162)) Year Cash Flow 0 −$9,900 1 5,400 2 4,400 3 3,900
Discounted Cash Flow Analysis. If the appropriate discount rate for the following cash flows is 7.3%,...
Discounted Cash Flow Analysis. If the appropriate discount rate for the following cash flows is 7.3%, what is the present value of the cash flows? Please show me how to do this problem using a Texas Instruments BAII Plus Business calculator. Year     Cash Flow 1              $1,200 2              1,100 3               800 4               600
Given the following cash flows and a discount rate of 9.5%, the net present value is...
Given the following cash flows and a discount rate of 9.5%, the net present value is closest to: CF0 $ (27.50) CF1 $ 8.75 CF2 $ 11.30 CF3 $ 14.90 St. Lawrence Ventures had cash flow from assets in 2014 of $1,875 (all values in thousands). The company paid interest expense of $370 and the cash flow to shareholders was $1,425. St. Lawrence: ct an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer....
Calculate the profitability index (PI) for the following cash flows if the relevant discount rate is...
Calculate the profitability index (PI) for the following cash flows if the relevant discount rate is 10% Year Cash Flow 0 -15,300 1 9,400 2 7,600 3 4,300
1A) What is the discount rate at which the following cash flows have a NPV of...
1A) What is the discount rate at which the following cash flows have a NPV of $0? Answer in %, rounding to 2 decimals. Year 0 cash flow = -158,000 Year 1 cash flow = 30,000 Year 2 cash flow = 36,000 Year 3 cash flow = 38,000 Year 4 cash flow = 39,000 Year 5 cash flow = 43,000 Year 6 cash flow = 42,000 1B) Your firm is evaluating a capital budgeting project. The estimated cash flows appear...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT