Question

In: Finance

A company is considering a project that has the following cash flow data. The firm’s WACC...

A company is considering a project that has the following cash flow data. The firm’s WACC is 11%.

Year

0    

1  

2  

3  

Cash flows

-$1,000

$300

$400

$600

a) What is the project’s payback period?

b) What is the project’s discounted payback period?

c) What is the project’s NPV?

d) What is the project’s Profitability Index?

e) Compute the Internal Rate of Return.

Solutions

Expert Solution

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

Cremona Company is considering a project that has the following cash flow and WACC data. What...
Cremona Company is considering a project that has the following cash flow and WACC data. What is the project’s Discounted payback, NPV, and MIRR? Weighted Average Cost of Capital (WACC) of Cremona Company is 12% Year CF 0 (1,000,000) 1 350,000 2 600,000 3 200,000 4 350,000 5 300,000 Please explain & show work/steps
Cremona Company is considering a project that has the following cash flow and WACC data. What...
Cremona Company is considering a project that has the following cash flow and WACC data. What is the project’s Discounted payback, NPV, and MIRR? Weighted Average Cost of Capital (WACC) of Cremona Company is 12% Year CF 0 (1,000,000) 1 350,000 2 600,000 3 200,000 4 350,000 5 300,000
Rocket Inc. is considering a project that has the following cash flow and WACC data. WACC:...
Rocket Inc. is considering a project that has the following cash flow and WACC data. WACC: 10.00% Year 0    1 2 3 4 Cash flows -$1,000 $510 $440 $425 $405 What is the project's payback?    What is the project's discounted payback?    Is the project worthwhile to undertake? (Would you undertake the project?) Why?
You are considering a project that has the following cash flow and WACC data. What is...
You are considering a project that has the following cash flow and WACC data. What is the project’s NPV? WACC: 9.00% Year: 0 1 2 3 4 5 Cash flows: –$1,000 $300 $300 $300 $300 $300 Select one: a. 150.62 b. 176.4 c. 166.90 d. 143.90
Masulis Inc. is considering a project that has the following cash flow and WACC data.  What is...
Masulis Inc. is considering a project that has the following cash flow and WACC data.  What is the project's discounted payback? WACC:  15.00% Year                            0                1                2                3                4     Cash flows              -$750         $525          $485          $445          $405 Hint: Discounted Payback period: The number of years required to recover a project’s cost. Cumulative cash flow computation takes into account the time value of money by using discounted cash flows. Group of answer choices 1.68 years 1.99 years 1.80 years 2.22 years 2.44 years
Global Group is considering a project that has the following cash flow and WACC data. What...
Global Group is considering a project that has the following cash flow and WACC data. What is the project's IRR? State in percentage terms without the percent sign symbol and round to the second decimal place. (Thus, 12.98756% would be written as 12.99 to be correct) WACC:           12.34% After Tax Salvage Value at end of year 4 = $200                                         Year                            0                      1                     2                     3                     4 Cash flows             -$1,600                 $450                  $450              ...
Feisty Fox Foundation is considering a project that has the following cash flow and WACC data....
Feisty Fox Foundation is considering a project that has the following cash flow and WACC data. What is the project's NPV? Compute to the second decimal place WACC:           11.85% After Tax Salvage Value at end of year 4 = $300                                           Year                            0                      1                      2                      3                      4 Cash flows         -$1,600                $450                $450                $450              $450
Fernando Designs is considering a project that has the following cash flow and WACC data. What...
Fernando Designs is considering a project that has the following cash flow and WACC data. What is the project's discounted payback? WACC: 10.00% Year 0 1 2 3 Cash flows -$650 $500 $500 $500
Cornell Enterprises is considering a project that has the following cash flow and WACC data. What...
Cornell Enterprises is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's projected NPV can be negative, in which case it will be rejected. WACC: 10.00% Year 0 1 2 3 Cash flows -$1,275 $450 $460 $470
Garvin Enterprises is considering a project that has the following cash flow and WACC data. What...
Garvin Enterprises is considering a project that has the following cash flow and WACC data. What is the project's discounted payback? Enter your answer rounded to two decimal places. For example, if your answer is 12.345 then enter as 12.35 in the answer box. WACC: 8% Year: 0 1 2 3 Cash flows: -$1,100 $550 $550 $550
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT