Question

In: Finance

A project has an initial cost of $40,000, expected net cash flows of $9,000 per year...

A project has an initial cost of $40,000, expected net cash flows of $9,000 per year for 7 years, and a cost of capital of 11% Calculate in excel NPV, IRR, PB, DPB?

Solutions

Expert Solution

Cash flows and discounted cash flows are

Year Cash flows DCF
0 (40,000.00) (40,000.00)
1      9,000.00      8,108.11
2      9,000.00      7,304.60
3      9,000.00      6,580.72
4      9,000.00      5,928.58
5      9,000.00      5,341.06
6      9,000.00      4,811.77
7      9,000.00      4,334.93
NPV      2,409.77
IRR 12.84%
Payback              4.44
Discounted payback              6.44

WORKINGS

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

A project has an initial cost of $40,000, expected net cash inflows of $9,000 per year...
A project has an initial cost of $40,000, expected net cash inflows of $9,000 per year for 7 years, and a cost of capital of 11%. What is the project’s NPV? (Hint: Begin by constructing a time line.) (10-2) Refer to Problem 10-1. What is the project’s IRR? (10-3) Refer to Problem 10-1. What is the project’s MIRR? (10-4) Refer to Problem 10-1. What is the project’s PI? (10-5) Refer to Problem 10-1. What is the project’s payback period? (10-6)...
A project has an initial cost of $40,000, expected net cash inflows of $9,000 per year...
A project has an initial cost of $40,000, expected net cash inflows of $9,000 per year for 9 years, and a cost of capital of 11%. What is the project's discounted payback period? Round your answer to two decimal places.
A project has an initial cost of $40,000, expected net cash inflows of $9,000 per year...
A project has an initial cost of $40,000, expected net cash inflows of $9,000 per year for 7 years, and a cost of capital of 11%. What is the project’s payback period? (NOT discounted payback period) Explain
A project has an initial cost of $40,000, expected net cash inflows of $9,000 per year...
A project has an initial cost of $40,000, expected net cash inflows of $9,000 per year for 7 years, and a cost of capital of 11%. What is the project’s NPV? (Hint: Begin by constructing a time line.) Financial Calculator: CFo=-40000, CF1=9000, F1=7, NPV I=11, CPT NPV=2409.7664 NPV = $2,409.77 What is the project’s IRR? Financial Calculator: CFo=-40000, CF1=9000, F1=7, NPV I=11, CPT NPV=2409.7664, CPT IRR=12.842 IRR = 12.84% What is the project’s MIRR? What is the project’s PI? What...
A project has an initial cost of $40,000, expected net cash inflows of $9,000 pr year...
A project has an initial cost of $40,000, expected net cash inflows of $9,000 pr year for 7 years, and cost of capital of 11%. a) What is the project's NPV? (Hint: Begin by constructing a time line.) b) What is the project's IRR? c) What is the project's MIRR? d) What is the project's PI? e) What is the project's payback period? f) What is the project's discounted payback period? Show your steps of solving the problems.
A project has an initial cost of $40,000, expected net cash inflows of $9,000 per year for 9 years, and a cost of capital of 11%.
Problem 10-6Discounted PaybackA project has an initial cost of $40,000, expected net cash inflows of $9,000 per year for 9 years, and a cost of capital of 11%. What is the project's discounted payback period? Round your answer to two decimal places.years
Discounted Payback A project has an initial cost of $40,000, expected net cash inflows of $9,000...
Discounted Payback A project has an initial cost of $40,000, expected net cash inflows of $9,000 per year for 9 years, and a cost of capital of 11%. What is the project's discounted payback period? Round your answer to two decimal places. years
A project has an initial cost of $63,000, expected net cash inflows of $9,000 per year...
A project has an initial cost of $63,000, expected net cash inflows of $9,000 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 $47,325, expected net cash inflows of $9,000 per year...
A project has an initial cost of $47,325, expected net cash inflows of $9,000 per year for 11 years, and a cost of capital of 8%. What is the project's NPV? (Hint: Begin by constructing a time line.) Do not round your intermediate calculations. Round your answer to the nearest cent. Net Salvage Value Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost $19 million, of which 85% has been depreciated. The used equipment...
A project has an initial cost of $40,000, expected net cash inflows of $12,000 per year...
A project has an initial cost of $40,000, expected net cash inflows of $12,000 per year for 9 years, and a cost of capital of 11%. What is the project's payback period? Round your answer to two decimal places. PLEASE SHOW ME A DETAILED EXPLANATION WITH EXCEL. THANKS!
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT