Question
In: Finance
17. Find the net present value (NPV) of a project that requires an initial investment of...
17. Find the net present value (NPV) of a project that requires an initial investment of $100,000 and provides cash flows of $14,000 per year for 12 years? The investor’s required return is 11%.
Solutions
jeff jeffy answered 1 year agoRelated Solutions
Find the net present value (NPV) of a project that requires an initial investment of $110,000...
Find the net present value (NPV) of a project that requires an
initial investment of $110,000 and provides cash flows of $13,500
per year for 15 years? The investor’s required return is 18.5%.
(a) Calculate the net present value (NPV) of a project which requires an initial investment of...
(a) Calculate the net present value (NPV) of a project which
requires an initial investment of $243,000 and it is expected to
generate a cash inflow of $58,000 each month for 12 months. Assume
that the salvage value of the project is zero. The target rate of
return is 12 % per annum.
(b) An initial investment of $8,720 thousand (i.e. × 1,000) on
plant and machinery is expected to generate cash inflows of $3,411
thousand, $4,070 thousand, $5,824 thousand...
What is the net present value of a project that requires an initial investment of $76,000...
What is the net present value of a project that requires an
initial investment of $76,000 and produces net cash flows of
$22,000 per year for 7 years? Assume the discount rate is 15
percent.
a.
$91,520
b.
$15,520
c.
$78,000
d.
$167,474
Calculate the Net Present Value of a project, which requires an initial investment of $399000 and...
Calculate the Net Present Value of a project, which requires an
initial investment of $399000 and it is expected to generate a cash
inflow of $29000 each month for 12 months. Assume that the salvage
value of the project is zero. The target rate of return is 11% per
annum. Write the formula and calculate NPV. Justify the result.
Q4. (a) Mr. Yasser Al Harthi, has a Dell Laptop. His laptop has
some problems in the motherboard unit, so it...
Calculate the net present value (NPV) for a 1515-year project with an initial investment of $45...
Calculate the net present value
(NPV)
for a
1515-year
project with an initial investment of
$45 comma 00045,000
and a cash inflow of
$7 comma 0007,000
per year. Assume that the firm has an opportunity cost of
1515%.
Comment on the acceptability of the project.
The project's net present value is
$nothing.
(Round to the nearest cent.)
Find the net present value of a project with initial cost of $5,876,000 and produces the...
Find the net present value of a project with initial cost of
$5,876,000 and produces the following cash flows: $3,200,000 at the
end of year 1; $2,973,000 at the end of year 2; and $2,525,000 at
the end of year 3. The required rate of return for the project is
15 percent.
A.
$814,852
B.
$1,634,917
C.
$723,100
D.
$487,286
A project costs $4,769,500 initially and produces the following
cash flows: $1,000,000 at the end of year 1; $1,500,000 at...
The NPV (net present value) of Plan Alpha is $ (130,539) The NPV (net present value)...
The
NPV (net present value) of Plan Alpha is $
(130,539)
The
NPV (net present value) of Plan Beta is $
233,001
The
IRR (internal rate of return) of Plan Alpha is $
19.36
%.
The
IRR (internal rate of return) of Plan Beta is $
21.25
%.
Which plan, if
any, should
the company pursue?
Based on the results above, the company
should pursue
Plan Beta
because
the NPV is
positive
and
the IRR is
greater than
the
company's...
1. What is the net present value (NPV) of the project? 2. Based on this NPV,...
1. What is the net present value (NPV) of the project?
2. Based on this NPV, should Hasbro undertake this project?
3. What is the internal rate of return (IRR) of this project?
You can find IRR by varying the discount rate in your table until
NPV is zero. That new discount rate will be the IRR.
Your grade will be based on the completeness of your cash flow
table and calculations as well as your answers above.
Monopoly expansion...
1. What is the net present value (NPV) of the project? 2. Based on this NPV,...
1. What is the net present value (NPV) of the project?
2. Based on this NPV, should Hasbro undertake this project?
3. What is the internal rate of return (IRR) of this project?
You can find IRR by varying the discount rate in your table until
NPV is zero. That new discount rate will be the IRR.
Your grade will be based on the completeness of your cash flow
table and calculations as well as your answers above.
Monopoly expansion...
Net Present Value—Unequal Lives Project 1 requires an original investment of $78,300. The project will yield...
Net Present Value—Unequal Lives
Project 1 requires an original investment of $78,300. The
project will yield cash flows of $14,000 per year for nine years.
Project 2 has a calculated net present value of $18,100 over a
seven-year life. Project 1 could be sold at the end of seven years
for a price of $51,000.
Use the Present Value of $1 at Compound
Interest and the Present Value of an Annuity of $1
at Compound Interest tables shown below.
Present...
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