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
Find the net present value of a project with initial cost of
$5,876,000 and produces the following cash flows: $3,200,000 at the
end of year 1; $2,973,000 at the end of year 2; and $2,525,000 at
the end of year 3. The required rate of return for the project is
15 percent.
A.
$814,852
B.
$1,634,917
C.
$723,100
D.
$487,286
A project costs $4,769,500 initially and produces the following
cash flows: $1,000,000 at the end of year 1; $1,500,000 at...
Find the net present value (NPV) of a project that requires an
initial investment of $110,000 and provides cash flows of $13,500
per year for 15 years? The investor’s required return is 18.5%.
(a) Calculate the net present value (NPV) of a project which
requires an initial investment of $243,000 and it is expected to
generate a cash inflow of $58,000 each month for 12 months. Assume
that the salvage value of the project is zero. The target rate of
return is 12 % per annum.
(b) An initial investment of $8,720 thousand (i.e. × 1,000) on
plant and machinery is expected to generate cash inflows of $3,411
thousand, $4,070 thousand, $5,824 thousand...
Calculate the Net Present Value of a project, which requires an
initial investment of $399000 and it is expected to generate a cash
inflow of $29000 each month for 12 months. Assume that the salvage
value of the project is zero. The target rate of return is 11% per
annum. Write the formula and calculate NPV. Justify the result.
Q4. (a) Mr. Yasser Al Harthi, has a Dell Laptop. His laptop has
some problems in the motherboard unit, so it...
17. Find the net present value (NPV) of a project that requires
an initial investment of $100,000 and provides cash flows of
$14,000 per year for 12 years? The investor’s required return is
11%.
Suppose that the initial cost of an investment is $310,000, the
present value of tax saving from depreciation is $10,510.53, and
the present value after tax terminal value is $185,573.74. If the
pretax discount rate is 16%, the marginal tax rate is 28%, what is
the break even after-tax net returns if the investment is sold in 3
years?
The net present value of an investment is best defined as
the
1 current cost if the investment is made today.
2 net value received at the end of the investment period.
3 present value of the investment's future cash flows minus the
investment's cost.
4 net decrease in value caused by waiting to receive the cash
benefit from the investment.
5 value received at the end of the investment period minus the
investment's cost.
Calculate the net present value
(NPV)
for a
1515-year
project with an initial investment of
$45 comma 00045,000
and a cash inflow of
$7 comma 0007,000
per year. Assume that the firm has an opportunity cost of
1515%.
Comment on the acceptability of the project.
The project's net present value is
$nothing.
(Round to the nearest cent.)
NPV Calculate the net present value for a 25-year
project with an initial investment of $50,000
and a cash inflow of $8,000 per year. Assume that the firm has
an opportunity cost of 18%.
Comment on the acceptability of the project.