Question
In: Finance
Use the following information to answer the next three questions. Consider the following cash flows: Year...
Use the following information to answer the next three questions. Consider the following cash flows:
| Year | Cash Flow |
| 0 | -$2,110,000 |
| 1 | 1,000,000 |
| 2 | 450,000 |
| 3 | 790,000 |
| 4 | 890,000 |
Assume a discount rate of 17.5 percent.
What is the payback period? Round your answer to two decimal places.
What is the net present value (NPV) rounded to the nearest dollar?
What is the internal rate of return?
please show work
Solutions
jeff jeffy answered 1 year agoRelated Solutions
Use the following information to answer the next three questions. Consider the following cash flows: Year...
Use the following information to answer the next three
questions. Consider the following cash flows:
Year
Cash Flow
0
-$2,110,000
1
1,000,000
2
450,000
3
790,000
4
890,000
Assume a discount rate of 17.5 percent.
What is the payback period? Round your answer to two decimal
places.
What is the net present value (NPV) rounded to the nearest
dollar?
What is the internal rate of return?
please show work.
Use the following information to answer the next three questions. Consider the cash flows from two...
Use the following information to answer the next three
questions.
Consider the cash flows from two mutually exclusive
projects:
Cash Flow
Year
Project A
Project B
0
-$470,000
-$460,000
1
$120,000
$392,000
2
$210,000
$110,000
3
$375,000
$120,000
The appropriate discount rate is 11.7%.
Calculate the net present value (NPV) for both projects, and
determine which project should be accepted based on NPV. Round both
NPVs to the nearest dollar.
Calculate the internal rate of return (IRR) for both projects,...
Use the following information to answer the next two questions. Consider the after-tax cash flows below:...
Use the following information to answer the next two
questions.
Consider the after-tax cash flows below:
Year
0
1
2
3
4
Cash Flow
-$75,000
$5,100
-$1,100
$498,000
-$272,000
The required rate of return is 12 percent.
Find an internal rate of return (IRR) for these cash flows.
Should you use the IRR you calculated in the previous question
to decide whether the project is acceptable? Explain
show work please
Use the following information to answer the next four questions. The cash flows for two mutually...
Use the following information to answer the next four
questions.
The cash flows for two mutually exclusive projects are shown in
the following table. Investors require a 16% rate of return for
each project.
Year
Cash Flows: Project S (in millions)
Cash Flows: Project T (in millions)
0
-200
-200
1
-20
50
2
45
60
3
70
30
4
-10
-40
5
125
100
6
125
100
7
150
100
Find the profitability index for project S. Round intermediate...
Use the following information to answer the next three questions. Show ALL your work! Consider the...
Use the following information to answer the next three
questions. Show ALL your work!
Consider the cash flows from two mutually exclusive
projects:
Cash Flow
Year
Project A
Project B
0
-$420,000
-$420,000
1
$150,000
$390,000
2
$230,000
$110,000
3
$321,000
$140,000
The appropriate discount rate is 11.7%.
-Calculate the net present value (NPV) for both projects, and
determine which project should be accepted based on NPV. Round both
NPVs to the nearest dollar.
-Calculate the internal rate of return...
Use the following information to answer the next three questions: The following information is available from...
Use the following information to answer the next three
questions:
The following information is available from the records of
Aggies R Us, Inc. at the end of the 2017 calendar
year. Assume this is Aggies’ 1st year of
operation.
Accounts
Receivable $102,200
Notes
Payable
$????
Cash 70,890 Salary
Expense 320,000
Building 75,000 Retained
earnings ????
Advertising
Expense 60,000 Accounts
Payable 62,800
Dividends 12,200 Income
Tax
Expense 23,100
Service
Revenues 460,000 Common
Stock 120,000
Office
Equipment 22,500 Wages
Payable 15,450
Determine Aggies’ Net Income for the year ended December
31, 2017:
A.
$36,900
B.
$80,000
C.
$56,900
D.
$44,700...
1. Use the following information to answer the next three questions. One year interest rates for...
1. Use the following information to answer the next three
questions. One year interest rates for identical investments in
Japan and Canada are 7% and 2%, respectively. The current exchange
rates for the two currencies are as follows: C$1.25/$, $ .008/¥.
What should be the one-year forward rate according to IRP?
2. Suppose the one-year forward rate is ¥106.5/C$. Calculate the
actual forward premium/discount, assuming Japan is the home
country. Round intermediate steps and your final answer four
decimals. Enter...
Please use the following information to answer the next question: For BB Incorporated: Cash Flows from...
Please use the following information to answer the next
question:
For BB Incorporated:
Cash Flows from Assets
--------------------------------------------------------------------
100 dollars
EBIT (from 1999 INCOME STATEMENT)
-------------------------------------------0 dollars
Depreciation Expense (from 1999 INCOME STATEMENT)
---------------------- 0 dollars
Taxes (from 1999 INCOME STATEMENT)
------------------------------------------ 0
Net Fixed Assets from BALANCE SHEET dated December 31,
1998-------------1400 dollars
Net Fixed Assets from BALANCE SHEET dated December 31,
1999------------ 1300 dollars
Additions to (Changes in) NWC for 1999
---------------------------------------------- 0 dollars
For KK Incorporated:
Cash...
Use the following information to answer the next four questions: Consider two municipalities, A and B,...
Use the following information to answer the next four questions:
Consider two municipalities, A and B, in the same province.
Residents in municipality A enjoy attending outdoor music concerts
(a public good) held in their public park. Each resident in
municipality A has a marginal benefit curve for these concerts
given by MB=10-2Q, where Q is the number of outdoor concerts. There
are 100 residents in this municipality. Residents in municipality B
do not enjoy outdoor music concerts (they are...
Use the following information to answer the next three questions. A British money manager observes that...
Use the following information to answer the next three
questions. A British money manager observes that the one-year
interest rate is 8 percent in the United Kingdom and 10 percent in
the US. The current spot exchange rate is $1.05/£. What should be
the one year forward rate according to IRP? Assume the UK is the
domestic nation. Round intermediate steps to four decimals.
£1.0309/$ £.9351/$ £.97/$ £1.0694/$ 5 points
QUESTION 3 If the actual forward rate is £.96/$, find...
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