Question

In: Accounting

4. Project Y has initial cost of $10,000, and the discount rate for each project is...

4. Project Y has initial cost of $10,000, and the discount rate for each project is 12%. Expected cash flow is given below for project:

Year Project Y

1. 2,000

2. 2,000

3 3,000

4 3,000

Calculate NPV for this project.

Number of units bought. Price paid per unit ($)

Item Year 1 Year 2 Year 1 Year 2

A 121 141 $9 $10

B 149 163 $21 $23

C 173 182 $26 $27

D 194 103 $31 $33

5. Calculate a base-weighted and current- weighted index. Years 1 is base and year 2 is current.

Expert Solution

ekkarill92 answered 2 years ago

A project has an initial, up-front cost of $10,000, at t = 0. The project is...

A project has an initial, up-front cost of $10,000, at t = 0. The project is expected to produce cash flows of $2,200 for the next three years. The project’s cash flows depend critically upon customer acceptance of the product. There is a 60% probability that the product will be wildly successful and produce CFs of $5,000, and a 40% chance it will produce annual CFs of -$2,000. At a 10% WACC, what is this project’s NPV with abandonment option?...

Dell is evaluating a project which has the initial cost of $10,000 and generates the following...

Dell is evaluating a project which has the initial cost of $10,000 and generates the following cash flow/ Year 1 2 3 4 5 Cash Flow 5,000 3,000 4,000 8,000 10,000 The firm's cost of capital is 10%. Calculate NPV, PI, IRR, MIRR, discounted payback, and payback period

JJ's is reviewing a project with a required discount rate of 15.2 percent and an initial...

JJ's is reviewing a project with a required discount rate of 15.2 percent and an initial cost of $309,000. The cash inflows are $47,000, $198,000, and $226,000 for Years 2 to 4, respectively. Should the project be accepted based on discounted payback if the required payback period is 2.5 years?

A project has an initial cost of $64,400, expected net cash inflows of $10,000 per year...

A project has an initial cost of $64,400, expected net cash inflows of $10,000 per year for 11 years, and a cost of capital of 12%. What is the project's MIRR? Do not round intermediate calculations. Round your answer to two decimal places.

A project has an initial cost of $62,375, expected net cash inflows of $10,000 per year...

A project has an initial cost of $62,375, expected net cash inflows of $10,000 per year for 12 years, and a cost of capital of 9%. What is the project's MIRR? Do not round intermediate calculations. Round your answer to two decimal places.

A project has an initial cost of $49,125, expected net cash inflows of $10,000 per year...

A project has an initial cost of $49,125, expected net cash inflows of $10,000 per year for 10 years, and a cost of capital of 13%. What is the project's PI? Do not round your intermediate calculations. Round your answer to two decimal places. Pls show all steps

A project has an initial cost of $60,000, expected net cash inflows of $10,000 per year...

A project has an initial cost of $60,000, expected net cash inflows of $10,000 per year for 8 years, and a cost of capital of 12%. Show your work. What is the project’s payback period? What is the project’s discounted payback period?

Gutweed Co. is considering a project with an initial cost of $4 million. The project will...

Gutweed Co. is considering a project with an initial cost of $4 million. The project will produce cash inflows of $1.5 million a year for five years. The firm has a weighted average cost of capital of 9%. Assume that the project has an average risk level as the whole firm. What is the net present value of the project? $1.83 million $3.22 million $0.92 million $2.41 million Given the following data for a stock: beta = 1.2; risk-free rate...

Identify a profitable project using initial investment up to $ 50,000. The discount rate must be...

Identify a profitable project using initial investment up to $ 50,000. The discount rate must be bonds. In an excel evaluate the project with VPN, IRR, recovery period, and rate of return. justify the numbers they occupied, the conclusions of the metrics studied in the excel and the reasons why they consider the project as a good option.

Find the discounted payback period for the following project. THe discount rate is 7%. Initial Outlay...

Find the discounted payback period for the following project. THe discount rate is 7%. Initial Outlay - $8,273 Year 1 - $3.774 Year 2 - $3,300 Year 3 - $5,328 Year 4 - $7,303 Round the answer to two decimal places. Show your work.