What is the net present value of a capital investment project that has the following, after-tax...

What is the net present value of a capital investment project that has the following, after-tax cash flows for a company that requires a 14% rate of return on the project?

Time- 0 1 2 3

Cash Flow- 3,800 500 1,700 7,200

Expert Solution

Ans NPV = $ 2806.49

Year	Project Cash Flows (i)	DF@ 14%	DF@ 14% (ii)	PV of Project ( (i) * (ii) )
0	-3800	1	1	(3,800.00)
1	500	1/((1+14%)^1)	0.877193	438.60
2	1700	1/((1+14%)^2)	0.769468	1,308.09
3	7200	1/((1+14%)^3)	0.674972	4,859.79
		NPV	2,806.49

jeff jeffy answered 2 years ago

What is the net present value of Project X if it has the following after tax...

What is the net present value of Project X if it has the following after tax cash flows? The interest rate is 6% End of year 1 = ($300) End of year 2 = $500 End of year 3 = $900 Please show equation that is easy to understand, able to put into TI-84.

what is the net present value of a project with the following after tax cash flows...

what is the net present value of a project with the following after tax cash flows using a discount rate of 10% year 0 45,000 year 1 14,000 year 2 14,000 year 3 10,000 year 4 10,000 year 5 8,000 would you accept the project? ehat is payback period? what is the profitbility index?

What is the net present value of a project that requires an initial investment of $76,000...

What is the net present value of a project that requires an initial investment of $76,000 and produces net cash flows of $22,000 per year for 7 years? Assume the discount rate is 15 percent. a. $91,520 b. $15,520 c. $78,000 d. $167,474

Determine the net present value for a project that costs $229,000 and would yield after-tax cash...

Determine the net present value for a project that costs $229,000 and would yield after-tax cash flows of $21,000 per year for the first 14 years, $29,000 per year for the next 18 years, and $42,000 per year for the following 12 years. Your firm's cost of capital is 10.00%. Question 16 options: $2,488.65 $1,345.00 $1,588.16 $1,885.34 $2,714.89

33. Determine the net present value for a project that costs $286,000 and would yield after-tax...

33. Determine the net present value for a project that costs $286,000 and would yield after-tax cash flows of $21,000 per year for the first 13 years, $29,000 per year for the next 12 years, and $42,000 per year for the following 12 years. Your firm's cost of capital is 8.00%.

Determine the net present value for a project that costs $58,500 and would yield after-tax cash...

Determine the net present value for a project that costs $58,500 and would yield after-tax cash flows of $9,000 the first year, $11,000 the second year, $14,000 the third year, $16,000 the fourth year, $20,000 the fifth year, and $26,000 the sixth year. Your firm's cost of capital is 5.00%. Question 27 options: $37,500.00 $16,954.36 $96,000.00 $20,377.84 $27,471.55

Calculate the Profitability Index and the Net Present Value of the following project: Year 0 Investment...

Calculate the Profitability Index and the Net Present Value of the following project: Year 0 Investment 75,000 Year 1 Income 25,000 PI ______________ Year 2 Income 35,000 Year 3 Investment 10,000 NPV ____________ Year 4 Income 40,000 Discount Rate 9% Go or No Go?

1. a) What is the net present value of a project that has upfront costs of...

1. a) What is the net present value of a project that has upfront costs of $5 million and pays end of the year cash flows of $1 million in one year, $2 million in two years, and $3 million in three years if the annual discount rate for the project is 3 percent? Show how much money you would have at the end of three years if you bought the project and what you would have instead if you...

What is the net present value of a project that has an initial cash outflow of...

What is the net present value of a project that has an initial cash outflow of $-13,000, at time 0, and the following cash flows for years 1-4? The required return is 10.0%. DO NOT USE DOLLAR SIGNS OR COMMAS IN YOUR ANSWER. ENTER YOUR ANSWER TO THE NEAREST DOLLAR (e.g. 1250). Year Cash Flows 1 $3,950 2 $3,750 3 $5,900 4 $6,400

What is the net present value of this investment? INITIAL COST

What is the net present value of this investment? INITIAL COST $500,000 PROJECT LIFE 15 years SALVAGE VALUE $ 20,000 ANNUAL NET CASH FLOWS $120,000 DISCOUNT RATE 15 % a. $ 203,684 b. $ 204,142 c. $ 205,669 d. $ 206,263 e. $ 208,721

Question