Suppose you are considering an investment that will generate
equal annual cash flow of $200,000 over...
Suppose you are considering an investment that will generate
equal annual cash flow of $200,000 over its 10-year life, resulting
in an IRR of 14% and a Profitability index of 1.05. What is this
investment's NVP?
An investment is expected to generate annual cash flows forever.
The first annual cash flow is expected in 1 year and all subsequent
annual cash flows are expected to grow at a constant rate annually.
We know that the cash flow expected in 3 years from today is
expected to be $9,000 and the cash flow expected in 7 years from
today is expected to be $10,000. What is the cash flow expected to
be in 5 years from today?
An investment is expected to generate annual cash flows forever.
The first annual cash flow is expected in 1 year and all subsequent
annual cash flows are expected to grow at a constant rate annually.
We know that the cash flow expected in 2 year(s) from today is
expected to be 1,860 dollars and the cash flow expected in 8 years
from today is expected to be 3,140 dollars. What is the cash flow
expected to be in 5 years...
You are considering a project with an initial investment of $14
million and annual cash flow (before interest and taxes) of
$2,000,000. The project’s cash flow is expected to continue
forever. The tax rate is 34%, the firm’s unlevered cost of equity
is 12% and its pre-tax cost of debt is 10%. The only side-effect
from the use of debt that you are concerned about is related to the
tax shield.
If the project were to be financed with 100%...
Your company is considering a capital investment of $212.469
million. The project will generate equal annual after-tax
operating cash flows of $36.79 million for 7 years. At the end of
its life, the project will be sold for $37 million, but the
project's adjusted tax basis at termination will be $31 million.
The project will require $16 million in additonal net working
capital. With a 27% marginal tax rate, what is the project's
IRR? (Percent with 1decimal)
You want to save sufficient funds to generate an annual cash
flow of $55,000 a year for 25 years as retirement income. You
currently have no retirement savings but plan to save an equal
amount each year for the next 38 years until your retirement. How
much do you need to save each year if you can earn 7.5 percent on
your savings?
A project is expected to generate cash flow from assets equal to
$250,000 at the end of the year. The cash flows are expected to
grow at 4% for the next 20 years. At the end of the 20 years, the
project will no longer be viable, but the company will be able to
sell off related equipment at an after tax salvage value of
$1,000,000. The cost of capital for this project is 8%. The company
is considering selling...
A project is expected to generate cash flow from assets equal to
$250,000 at the end of the year. The cash flows are expected to
grow at 4% for the next 20 years. At the end of the 20 years, the
project will no longer be viable, but the company will be able to
sell off related equipment at an after tax salvage value of
$1,000,000. The cost of capital for this project is 8%.
The company is considering selling...
Suppose you are considering a project that will generate
quarterly cash flows of $16429 at the beginning of each quarter for
the next 12 years. If the appropriate discount rate for this
project is 12%, how much is this project worth today? Round to the
nearest cent.
Suppose you are considering a project that will generate quarterly
cash flows of $17143 at the beginning of each quarter for the next
11 years. If the appropriate discount rate for this project is 13%,
how much is this project worth today? Round to the nearest
cent.