Question

In: Finance

Blink of an Eye Company is evaluating a 5-year project that will provide cash flows of...

Blink of an Eye Company is evaluating a 5-year project that will provide cash flows of $35,700, $62,070, $62,450, $60,260, and $43,300, respectively. The project has an initial cost of $158,080 and the required return is 8.3 percent. What is the project's NPV? (I got 49,836.08, can someone confirm)

Solutions

Expert Solution

Ans $ 49386.08

Year Project Cash Flows (i) DF@ 8.3% DF@ 8.3% (ii) PV of Project ( (i) * (ii) )
0 -158080 1 1                       (1,58,080.00)
1 35700 1/((1+8.3%)^1) 0.923361                             32,963.99
2 62070 1/((1+8.3%)^2) 0.852596                             52,920.61
3 62450 1/((1+8.3%)^3) 0.787254                             49,163.98
4 60260 1/((1+8.3%)^4) 0.726919                             43,804.15
5 43300 1/((1+8.3%)^5) 0.671209                             29,063.35
NPV                             49,836.08

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

Blink of an Eye Company is evaluating a 5-year project that will provide cash flows of...
Blink of an Eye Company is evaluating a 5-year project that will provide cash flows of $34,100, $53,910, $62,130, $59,820, and $42,780, respectively. The project has an initial cost of $147,200 and the required return is 7.9 percent. What is the project's NPV?
RAK Corp. is evaluating a project with the following cash flows:    Year Cash Flow 0...
RAK Corp. is evaluating a project with the following cash flows:    Year Cash Flow 0 –$ 28,600 1 10,800 2 13,500 3 15,400 4 12,500 5 – 9,000    The company uses a discount rate of 13 percent and a reinvestment rate of 6 percent on all of its projects.    Calculate the MIRR of the project using the discounting approach. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)...
Mittuch Corp. is evaluating a project with the following cash flows: Year Cash Flow 0 –$...
Mittuch Corp. is evaluating a project with the following cash flows: Year Cash Flow 0 –$ 15,400 1 6,500 2 7,700 3 7,300 4 6,100 5 –3,500 The company uses an interest rate of 8 percent on all of its projects. Calculate the MIRR of the project using all three methods. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) MIRR Discounting approach % Reinvestment approach % Combination approach %
RAK Corp. is evaluating a project with the following cash flows:    Year Cash Flow 0...
RAK Corp. is evaluating a project with the following cash flows:    Year Cash Flow 0 –$ 29,500 1 11,700 2 14,400 3 16,300 4 13,400 5 – 9,900    The company uses a discount rate of 13 percent and a reinvestment rate of 6 percent on all of its projects.    1. Calculate the MIRR of the project using the discounting approach. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g.,...
Chamberlain Corp. is evaluating a project with the following cash flows: Year Cash Flow 0 –$...
Chamberlain Corp. is evaluating a project with the following cash flows: Year Cash Flow 0 –$ 23,000 1 8,400 2 9,200 3 8,900 4 7,500 5 – 5,000 Required: The company uses an interest rate of 6 percent on all of its projects. Calculate the MIRR of the project using all three methods. (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) MIRR Discounting approach % Reinvestment approach % Combination approach %
Solo Corp. is evaluating a project with the following cash flows: Year 0 Cash Flow –$...
Solo Corp. is evaluating a project with the following cash flows: Year 0 Cash Flow –$ 29,100 Year 1 Cash Flow $11,300 Year 2 Cash Flow $14,000 Year 3 Cash Flow $15,900 Year 4 Cash Flow $13,000 Year 5 Cash Flow $– 9,500 The company uses an interest rate of 8 percent on all of its projects. a. Calculate the MIRR of the project using the discounting approach. b. Calculate the MIRR of the project using the reinvestment approach. c....
Solo Corp. is evaluating a project with the following cash flows: Year 0 Cash Flow –$...
Solo Corp. is evaluating a project with the following cash flows: Year 0 Cash Flow –$ 28,900 Year 1 Cash Flow $11,100 Year 2 Cash Flow $13,800 Year 3 Cash Flow $15,700 Year 4 Cash Flow $12,800 Year 5 Cash Flow $– 9,300 The company uses a discount rate of 13 percent and a reinvestment rate of 6 percent on all of its projects. a.)Calculate the MIRR of the project using the discounting approach. b.) Calculate the MIRR of the...
RAK Corp. is evaluating a project with the following cash flows:    Year Cash Flow 0...
RAK Corp. is evaluating a project with the following cash flows:    Year Cash Flow 0 –$ 29,800 1 12,000 2 14,700 3 16,600 4 13,700 5 – 10,200 The company uses a discount rate of 13 percent and a reinvestment rate of 6 percent on all of its projects.    Calculate the MIRR of the project using the discounting approach. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)   ...
RAK Corp. is evaluating a project with the following cash flows:    Year Cash Flow 0...
RAK Corp. is evaluating a project with the following cash flows:    Year Cash Flow 0 –$ 29,700 1 11,900 2 14,600 3 16,500 4 13,600 5 – 10,100    The company uses a discount rate of 12 percent and a reinvestment rate of 7 percent on all of its projects.    Calculate the MIRR of the project using the discounting approach. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)...
Solo Corp. is evaluating a project with the following cash flows: Year Cash Flow 0 –$...
Solo Corp. is evaluating a project with the following cash flows: Year Cash Flow 0 –$ 29,200 1 11,400 2 14,100 3 16,000 4 13,100 5 – 9,600 The company uses an interest rate of 9 percent on all of its projects. 1. Calculate the MIRR of the project using the discounting approach. 2. Calculate the MIRR of the project using the reinvestment approach. 3. Calculate the MIRR of the project using the combination approach. Reinvestment rate not given.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT