Cash Flow Over Project #3 Lifecycle Target Rate of Return 9.229% Net Cash Flows At End...

Cash Flow Over Project #3 Lifecycle
Target Rate of Return	9.229%
	Net Cash Flows At End of Year
Year Number	0	1	2	3	4
YEAR	2019	2020	2021	2022	2023
CAPITAL PRODUCT #3	-$1,593,800	$406,900	$445,500	$691,100	$1,106,400
Cumulative cash flows	-$1,593,800	-$1,186,900	-$741,400	-$50,300	$1,056,100
Discounted cash flows	-$1,593,800	$372,520	$373,398	$530,307	$777,249
Cumulative discounted cash flows	-$1,593,800	-$1,221,280	-$847,882	-$317,575	$459,674

Calculate using the above information:

1) Net Present Value (NPV)

2) Internal Rate of Return (IRR)

3) Profitability Index (PI)

4) Modified Internal Rate of Return (MIRR)

5) Payback Period (PP)

6) Discounted Payback Period (DPP)

Solutions

Expert Solution

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

CASH FLOWS OVER PROJECT #2's LIFE Target Rate of Return 9.229% Net Cash Flows At End...

CASH FLOWS OVER PROJECT #2's LIFE Target Rate of Return 9.229% Net Cash Flows At End of Year Year Number 0 1 2 3 4 YEAR 2019 2020 2021 2022 2023 CAPITAL PRODUCT #2 -$1,581,500 $486,300 $486,700 $431,100 $1,123,100 Cumulative cash flows -$1,581,500 -$1,095,200 -$608,500 -$177,400 $945,700 Discounted cash flows -$1,581,500 $445,211 $407,930 $330,799 $788,981 Cumulative discounted cash flows -$1,581,500 -$1,136,289 -$728,359 -$397,560 $391,421 Calculate using above information: 1) Net Present Value (NPV) 2) Internal Rate of Return (IRR) 3)...

CASH FLOWS OVER PROJECT #1's LIFE Target Rate of Return 9.229% Net Cash Flows At End...

CASH FLOWS OVER PROJECT #1's LIFE Target Rate of Return 9.229% Net Cash Flows At End of Year Year Number 0 1 2 3 4 YEAR 2019 2020 2021 2022 2023 CAPITAL PRODUCT #1 -$1,461,200 $411,100 $474,300 $640,300 $819,500 Cumulative cash flows -$1,461,200 -$1,050,100 -$575,800 $64,500 $884,000 Discounted cash flows -$1,461,200 $376,365 $397,537 $491,326 $575,701 Cumulative discounted cash flows -$1,461,200 -$1,084,835 -$687,298 -$195,972 $379,729 Calculate using above information: 1) Net Present Value (NPV) 2) Internal Rate of Return (IRR) 3)...

CASH FLOWS OVER PROJECT #4's LIFE Target Rate of Return 9.229% Net Cash Flows At End...

CASH FLOWS OVER PROJECT #4's LIFE Target Rate of Return 9.229% Net Cash Flows At End of Year Year Number 0 1 2 3 4 YEAR 2019 2020 2021 2022 2023 CAPITAL PRODUCT #4 -$963,900 $243,900 $329,300 $434,900 $516,500 Cumulative cash flows -$963,900 -$720,000 -$390,700 $44,200 $560,700 Discounted cash flows -$963,900 $223,292 $276,004 $333,715 $362,843 Cumulative discounted cash flows -$963,900 -$740,608 -$464,603 -$130,889 $231,954 Calculate using above information: 1) Net Present Value (NPV) 2) Internal Rate of Return (IRR) 3)...

8. The (net) cash flows of project C and D are shown below: Net Cash Flow...

8. The (net) cash flows of project C and D are shown below: Net Cash Flow ($) Year Project C Project D 0 -2,000 -1,000 1 3,000 650 2 125 1,500 a. Find the crossover rates. (1.5 point) b. The cost of capital is 12 percent. If C and D are mutually exclusive, which project should be accepted? Why? (0.5 point)

Problem 2: Given the net cash flows for Project X (over 3-years) for Aberdeen Company Year...

Problem 2: Given the net cash flows for Project X (over 3-years) for Aberdeen Company Year CF 0-$300,000 1 $120,000 2 $128,000 3 $155,000 The company's capital structure is distributed equally between debt, preferred stock, common stock and new common stock. It has also the following information: 1- After tax cost of debt: 5.4%. Tax rate: 40% 2- Preferred stocks are selling at $80 per share and pay a dividend of $8 per share 3- Common stocks are selling at...

Consider a project generating the following cash flows over six years: Year Cash Flow (R in...

Consider a project generating the following cash flows over six years: Year Cash Flow (R in millions) 0 -59.00 1 4.00 2 5.00 3 6.00 4 7.33 5 8.00 6 8.25 Required: 1. Calculate the NPV over six years. The discount rate is 11%. 2. This project does not end after the sixth year but instead will generate cash flows far into the future. Estimate the terminal value, assume that cash flows after year 6 will continue at R8.25 million...

For the net cash flow series, find the external rate of return (EROR) using the MIRR...

For the net cash flow series, find the external rate of return (EROR) using the MIRR method with an investment rate of 25% per year and a borrowing rate of 11% per year. Year 1 2 3 4 5 6 Net Cash Flow, $ 4,000 -5,000 -3,000 6,000 -800 3,400 The external rate of return is %.

A project generates cash flows of $125k, $125k, and $95k. The required rate of return is...

A project generates cash flows of $125k, $125k, and $95k. The required rate of return is 10%. The value of the project or “asset” is $288,317. Given your answer, which ones are true. IRR = 10% PI = 1.0 NPV = 0

What is the internal rate of return (IRR) of this project given the following cash flows?...

What is the internal rate of return (IRR) of this project given the following cash flows? Year CF 0 -$9,800 1 $1,000 2 $4,500 3 $1,000 4 $1,500 5 $1,700 6 $2,700 Convert your answer to percentage and round off to two decimal points. Do not enter % in the answer box.

16) A project has the following cash flows. What is the internal rate of return? Year/Cash...

16) A project has the following cash flows. What is the internal rate of return? Year/Cash Flow 0/ -$89,300.00 1/ $82,900.00 2/ $4,200.00 3/ $5,800.00 A) 1.02 percent B) 6.77 percent C) 5.97 percent D) 1.11 percent E) 3.45 percent 17) A company wants to purchase a new machine costing $1.46 million. Management is estimating the machine will generate cash inflows of $223,000 the first year and $600,000 for the following four years. If management requires a minimum 12 percent...

Subjects