You are considering a project with an initial cash outlay of
$87000 and expected cash flows...
You are considering a project with an initial cash outlay of
$87000 and expected cash flows of $23490 at the end of each year
for six years. The discount rate for this project is 10.1
percent.
a. What are the project's payback and discounted payback
periods?
b. What is the project's NPV?
c. What is the project's PI?
d. What is the project's IRR?
Solutions
Expert Solution
Solution :-
(A)
Project Payback Period = Initial Outlay / Annual Cash flow =
$87,000 / $23,490 = 3.704 Years
You are considering a project with an initial cash outlay of
$72,000 and expected cash flows of $22,320 at the end of each
year for six years. The discount rate for this project is 10.5
percent.
a. What are the project's payback and
discounted payback periods?
b. What is the project's NPV?
c. What is the project's PI?
d. What is the project's IRR?
a. The payback period of the project is nothing years.
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 7 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?
You are considering a project with an initial cash outlay of
$85,000 and expected free cash flows of $20,000 at the end of each
year for 5 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?
a. The project's payback period is
_____years. (Round to two decimal places.)
b. The project's NPV...
You are considering a project with an initial cash outlay of
$75,000 and expected free cash flows of $22,000 at the end of
each year for 6 years. The required rate of return for this project
is 8 percent. What is the project's NPV? What is the project's
PI? What is the project's IRR?
You are considering a project with an initial cash outlay of
$70,000
and expected free cash flows of $15,500
at the end of each year for
5
years. The required rate of return for this project is
5.5
percent.
a)
(5 pts)
What is the payback period of the
project?
b)
(5 pts)
What is the project’s NPV?
c)
(5 pts)
What is the project’s IRR?
d)
(5 pts)
If your firm has a required payback of
5years
and passing...
You are considering a project with an initial cash outlay of
$100,000 and expected free
cash flows of $23,000 at the end of each year for 6 years. The
required rate of return for this
project is 10 percent.
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 PI ?
e. What is the project’s IRR ?
f. What is the project’s...
You are considering a project with an initial cash outlay of
$80,000 and expected free cash flows of $20,000 at the end of each
year for 6 years. The required rate of return for this project is
10 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? e. Indicate if the project should be accepted and
why
You are considering a project with an initial cash outlay of $
85,000 and expected free cash flows of $ 28,000 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?
Premium Soccer Ball Company is considering a project with the
following relevant cash flows: Initial Outlay = $750,000
Incremental Cash Flows from Operations Year 1-4 = $250,000 per year
Terminal Cash Flow at the End of Year 4 = $40,000 Compute the net
present value of this project if the firm's cost of capital is
12%
A project has an initial outlay of $3,640. The project will
generate cash flows of $4,565 in Years 1-5. What is the Equivalent
Annual Annuity (EAA) of this project? Assume an interest rate of
11%.
Note: Enter your answer rounded off to two decimal points. Do
not enter $ or comma in the answer box. If your answer is negative,
enter your answer as a negative number rounded off to two decimal
points.