Question
In: Finance
Net present value Using a cost of capital of 11%, calculate the net present value for...
Net present value Using a cost of capital of 11%, calculate the net present value for the project shown in the following table and indicate whether it is acceptable,
|
Initial investment (CF 0CF0) |
negative 1 comma 143 comma 000−1,143,000 |
|
|
Year (t) |
Cash inflows (CF Subscript tCFt) |
|
|
1 |
$81,000 |
|
|
2 |
$138,000 |
|
|
3 |
$193,000 |
|
|
4 |
$258,000 |
|
|
5 |
$311,000 |
|
|
6 |
$377,000 |
|
|
7 |
$270,000 |
|
|
8 |
$98,000 |
|
|
9 |
$45,000 |
|
|
10 |
$29,000 |
|
The net present value (NPV) of the project is _____$ (Round to the nearest cent.)
Is the project acceptable?
Solutions
Expert Solution
Solution:-
To Calculate NPV of the Project-
The Project is not accepted as Net Present value of the Project is Negative. Project is accepted when NPV of the project is greater than or equal to zero. Hence, Project are not acceptable.
If you have any query related to question then feel free to ask me in a comment.Thanks. Please rate.
jeff jeffy answered 1 year agoRelated Solutions
Using a cost of capital of 11%, calculate the net present value for the project shown...
Using a cost of capital of 11%, calculate the net present
value for the project shown in the following table and indicate
whether it is acceptable,
Initial investment
(CF 0CF0)
negative $−$1149
Year
(t)
Cash inflows
(CF Subscript tCFt)
in thousands
1
$8080
2
$130
3
$189
4
$256
5
$312
6
$376
7
$280
8
$102
9
$42
10
$20
The net present value (NPV) of the project is
$-75,817.60. (Round to the nearest cent.) Is the project
acceptable?
Using a cost of capital of 11%, calculate the net present value for the project shown...
Using a cost of capital of 11%, calculate the net present value
for the project shown in the following table and indicate whether
it is acceptable
Initial investment
(CF 0CF0)
-$1149
Year
(t)
Cash inflows
(CF Subscript tCFt)
in thousands
1
$80
2
$130
3
$189
4
$256
5
$312
6
$376
7
$280
8
$102
9
$42
10
$20
Net present value. Independent projects Using a 14% cost of capital, calculate the net present value...
Net present value. Independent projects Using a 14% cost of
capital, calculate the net present value for each of the
independent projects shown in the following table, and indicate
whether each is acceptable.
Project A
Project B
Project C
Project D
Project E
Initial investment
$26,000
$500,000
$170,000
$950,000
$80,000
Year
Cash inflows
1
$4,000
$100,000
$20,000
$230,000
$ 0
2
4,000
120,000
19,000
230,000
0
3
4,000
140,000
18,000
230,000
0
4
4,000
160,000
17,000
230,000
20,000
5
4,000...
Net present value. Independent projects Using a 14% cost of capital, calculate the net present value...
Net present value. Independent projects Using a 14% cost of
capital, calculate the net present value for each of the
independent projects shown in the following table, and indicate
whether each is acceptable.
Project A
Project B
Project C
Project D
Project E
Initial investment
$26,000
$500,000
$170,000
$950,000
$80,000
Year
Cash inflows
1
$4,000
$100,000
$20,000
$230,000
$ 0
2
4,000
120,000
19,000
230,000
0
3
4,000
140,000
18,000
230,000
0
4
4,000
160,000
17,000
230,000
20,000
5
4,000...
Using a cost of capital of 13%, calculate the net present value for the project shown...
Using a cost of capital of 13%, calculate the net present value
for the project shown in the following table and indicate whether
it is acceptable, LOADING.... The net present value (NPV) of the
project is $
Initial investment -1,151,000
Year Cash inflows
1 84,000
2 136,000
3 192,000
4 255,000
5 318,000
6 382,000
7 277,000
8 100,000
9 42,000
10 25,000
Using a cost of capital of 15%, calculate the net present value for the project shown...
Using a cost of capital of 15%, calculate the net present value
for the project shown in the following table and indicate whether
it is acceptable
Initial investment $-1,145
Year Cash inflows
1 $76
2 $132
3 $185
4 $256
5 $316
6 $383
7 $277
8 $98
9 $43
10 $25
The net present value (NPV) of the project is $_____
Please show all work and what inputs would be in a financial
calculator
Evaluate the following projects, using the Net Present Value (NPV). Assume a cost of capital of...
Evaluate the following projects, using the Net Present Value
(NPV). Assume a cost of capital of 6%.
Project
A
Project B
Initial Cash Outflow
$200,000
$160,000
Year 1 Cash flow
69,000
80,000
Year 2 Cash flow
71,000
80,000
Year 3 Cash flow
85,000
50,000
Calculate the NPV for each project.
Which project would you accept according to the NPV?
Evaluate the following projects, using the net present value criteria. Assume a cost of capital of...
Evaluate the following projects, using the net present value
criteria. Assume a cost of capital of 9%.
Project M
Project N
Initial Cash Outflow
-$260,000
-$260,000
Year 1 Cash flow
19,000
185,000
Year 2 Cash flow
121,000
85,000
Year 3 Cash flow
185,000
55,000
a.
What are the NPVs for the projects and what do these numbers
tell you?
b.
If the projects are independent, which would you accept
according to the...
Calculate the Net Present Value of the cash flows depicted in the table below using a...
Calculate the Net Present Value of the cash flows depicted in
the table below using a cost of capital of {r81d}percent.
year
Cash Flow
0
-60
1
40
2
40
3
0
Given the following information, calculate the Net Present Value for a capital budget proposal? Show your...
Given the following information, calculate the Net Present Value
for a capital budget proposal? Show your work. Machine Cost:
$6,000,000 Salvage Value: $50,000 Setup Costs: $45,000 Training
Costs: $25,000 Annual maintenance costs: $45,000 Anticipated annual
savings: $560,000 Annual labor savings: $25,000 Expected useful
life in years: 12 Overhaul costs in year 4: $50,000 Annual
operating costs: $25,000 Hurdle rate: 8%
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- ***Convert the C++ to Python*** #include <iostream> using std::cout; using std::cin; using std::endl; int charClass; char...
- Make-or-Buy Decision Fremont Computer Company has been purchasing carrying cases for its portable computers at a...
- The following costs were incurred for the single product produced during the first year of operations...
- Non-constant growth model: Do=$2.00 required return on equity= 5% g= 9% n=1,2 g=7% n=3,4 g=3% n=5...
- . Find all x ∈ Z143 such that x2Ξ 7 (mod 143). Please explain all steps...
- #Python: A palindrome is a sequence of characters that reads the same backwards as forwards. For...
- Explain an example in which a variable has two different addresses at different places in a...
ADVERTISEMENT