Question
In: Finance
A project has the following total (or net) cash flows. __________________________________________ &nbs
A project has the following total (or net) cash flows.
__________________________________________
Year Total (or net) cash flow
_________________________________________
1 $20,000
2 30,000
3 50,000
4 60,000
_________________________________________
The required rate of return on the project is 15 percent. The
initial investment (or initial cost or initial outlay) of the
project is $80,000.
a) Find the net present value (NPV) of the project.
b) Find the profitability index (PI) of the project.
c) Calculate the modified internal rate of return (MIRR) of the
project.
Solutions
jeff jeffy answered 1 year agoRelated Solutions
A project has the following total (or net) cash flows. __________________________________________ &nbs
A project has the following total (or net) cash flows.
__________________________________________
Year Total
(or net) cash flow
_________________________________________
1 $20,000
2 30,000
3 50,000
4 60,000
_________________________________________
The required rate of return on the project is 15 percent. The
initial investment (or initial cost or initial outlay) of the
project is $80,000.
a) Find the net present value (NPV) of the project.
b) Find the profitability index (PI) of the project.
c) Calculate the modified internal rate...
A project has the following total (or net) after-tax cash flows. ____________________________________________________ Year&nbs
A project has the following total (or net) after-tax cash
flows.
____________________________________________________
Year
Total (or net) after-tax cash flow
____________________________________________________
1 $1,000,000
2 1,500,000
3 2,000,000
4 2,500,000
_______________________________________________________
The required rate of return on the project is 15 percent. The
initial investment (or initial cost or initial outlay) of the
project is $4,000,000.
a) Find the (regular) payback period of the project.
b) Compute the discounted payback period of the project.
c) Find...
A project has the following total (or net) cash flows. ________________________________________
A project has the following total (or net) cash flows.
________________________________________
Year Total (or net)
cash flow
________________________________________
1 $50,000
2 70,000
3 80,000
4 100,000
_______________________________________
The required rate of return on the project is 13 percent. The
initial investment (or initial cost or initial outlay) of the
project is $100,000.
a) Find the (regular) payback period of the project.
b) Compute the discounted payback period of the project.
6. A project has the following...
6. A project has the following total (or net) cash flows. __________________________________________ Year Total (or net)...
6. A project has the following total (or net) cash flows.
__________________________________________
Year Total (or net) cash flow
_________________________________________
1- $20,000
2- 30,000
3- 50,000
4- 60,000
_________________________________________
The required rate of return on the project is 15 percent. The
initial investment (or initial cost or initial outlay) of the
project is $80,000.
a) Find the net present value (NPV) of the project.
b) Find the profitability index (PI) of the project.
c) Calculate the modified internal rate of return...
Braun Industries is considering an investment project that has the following cash flows: &nbs
Braun Industries is considering an investment project that has
the following cash flows:
Project
Year Cash
Flows
0 -$641
1 $421
2 $407
3 $490
The company’s WACC is 10.5 percent. What is the
project’s payback, internal rate of return (IRR), and net present
value (NPV)?
A project has the following cash flows:
A project has the following cash flows:YearCash Flow0–$16,60017,30028,60037,100 a.What is the NPV at a discount rate of zero percent? (Do
not round intermediate calculations and round your
answer to the nearest whole number, e.g.,
32.)b.What is the NPV at a discount rate of 12 percent? (Do
not round intermediate calculations and round your answer to 2
decimal places, e.g., 32.16.)c.What is the NPV at a discount rate of 19 percent? (A
negative answer should be indicated by a minus sign. Do...
A project has the following cash flows:
A project has the following cash
flows:
Year
Cash Flow
0
$
39,500
1
–
18,500
2
–
29,500
What is the IRR for this project? (Do not round
intermediate calculations. Enter your answer as a percent rounded
to 2 decimal places, e.g., 32.16.)
IRR
%
What is the NPV of this project, if the required return is 11
percent? (Negative amount should be indicated by a minus
sign. Do not round intermediate calculations and round your answer
to 2...
A project has the following cash flows:
A project has the following cash flows:
Year
Cash Flow
0
$64,000
1
–30,000
2
–48,000
a. What is the IRR for this project?
b. What is the NPV of this project, if the
required return is 12 percent?
c. NPV at 0 percent?
d. NPV at 24 percent?
Consider a project with a net investment of $40,000 and the following net cash flows: Annual...
Consider a project with a net investment of $40,000 and the
following net cash flows: Annual Cash Flow Year 1 $25,000, Year 2
$36,000, Year 3 $8,000.
If the company's cost of capital is 5%, what would be the net
present value of the project? (Using the financial calculator)
An independent project has a net investment of $260,000, and generates net cash flows of $88,000...
An independent project has a net investment of $260,000, and
generates net cash flows of $88,000 for 5 years. The required rate
of return in 20%. Compute the net present value.
Group of answer choices
12056.76
3173.87
4537.89
10450.56
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