Question
In: Finance
Your division is considering a project with the following net cash flows (in millions): Period 0...
Your division is considering a project with the following net cash flows (in millions): Period 0 1 2 3 Project A -$25 $5 $10 $17 What is the project's NPV assuming the WACC is 0.06?
Solutions
Expert Solution
Ans NPV = $ 2.89 million
| Year | Project Cash Flows (i) | DF@ 6% | DF@ 6% (ii) | PV of Project A ( (i) * (ii) ) |
| 0 | -25 | 1 | 1 | (25.00) |
| 1 | 5 | 1/((1+6%)^1) | 0.943 | 4.72 |
| 2 | 10 | 1/((1+6%)^2) | 0.890 | 8.90 |
| 3 | 17 | 1/((1+6%)^3) | 0.840 | 14.27 |
| NPV | 2.89 | |||
jeff jeffy answered 1 year agoRelated Solutions
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Your division is considering two projects with the following
cash flows (in millions):
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2
3
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-$27
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$8
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$11
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calculations. Enter your answer in millions. For example, an answer
of $10,550,000 should be entered as 10.55. Negative value should be
indicated by a minus sign.
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2
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$14
$9
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$20
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Your division is considering two projects with the following cash flows (in millions): 0 1 2...
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cash flows (in millions):
0
1
2
3
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$4
$14
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answer to two decimal places. Do not round your intermediate
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considering two projects with the following cash flows (in
millions):
0
1
2
3
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$5
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Project B
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$8
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What are the projects'
NPVs assuming the WACC is 5%? Enter your answer in millions. For
example, an answer of $10,550,000 should be entered as 10.55.
Negative values, if any, should be indicated by a minus sign. Do
not round intermediate calculations. Round your answer to two
decimal places.
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What are the projects' NPVs assuming the WACC is 5%? Enter your
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