Question
In: Finance
Year t=0 t=1 t=2 t=3 t=4 ??? $7,500 $12,500 $15,000 $17,500 The Payback Period of this...
Year t=0 t=1 t=2 t=3 t=4
??? $7,500 $12,500 $15,000 $17,500
The Payback Period of this project is 2.4 years. The appropriate discount rate is 13%. Find the Net Present Value of the project. (Note that the cash flow for t=0 is not provided to you – that is, you must first solve for it).
This will be a negative value
Solutions
Expert Solution
Ans NPV = $ 11555.33
| Year | Project Cash Flows (i) | DF@ 13% (ii) | DF@ 13% (ii) | PV of Project B ( (i) * (ii) ) |
| 0 | -26000 | 1 | 1 | (26,000.00) |
| 1 | 7500 | 1 / (1 + 13%)^1 | 0.885 | 6,637.17 |
| 2 | 12500 | 1 / (1 + 13%)^2 | 0.783 | 9,789.33 |
| 3 | 15000 | 1 / (1 + 13%)^3 | 0.693 | 10,395.75 |
| 4 | 17500 | 1 / (1 + 13%)^4 | 0.613 | 10,733.08 |
| NPV | 11,555.33 | |||
| Cash flow for t = 0 = 2.4 = | cash flow of year 1 + year 2 + 0.4 of year 3 | |||
| 7500 + 12500 + 0.4* 15000 | ||||
| 26000 | ||||
jeff jeffy answered 1 year agoRelated Solutions
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Ratio
Period
0
1
2
3
4
5
Year
2,019
2020
2021
2022
2023
2024
Cash Flows
-30,000
11,000 x .8929 = 9821.9
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Consider a project with the following cash flows: $3,500 at t=1, $12,500 at t=2, $15,000 at...
Consider a project with the
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A. $6,916.67
B. ($11,852.73)
C. ($1,627.27)
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E. Insufficient
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A= 1 2 4 0 1 -2 -1 0 1 2 0 3 8 1 4...
A=
1
2
4
0
1
-2
-1
0
1
2
0
3
8
1
4
. Let W denote the row space for A.
(a) Find an orthonormal basis for W and for W⊥.
(b) Compute projW⊥(1 1 1 1 1 ).
Consider the following investment opportunities. Period A B C D 0 -12,500 -11,000 12,500 -13,000 1...
Consider the following investment opportunities.
Period
A
B
C
D
0
-12,500
-11,000
12,500
-13,000
1
5,400
-3,000
-7,000
5,500
2
14,400
21,000
-2,000
5,500
3
7,200
13,000
4,000
8,500
a) Compute the present worth of each investment, assuming a MARR
of 15%
b) Compute the future worth of each investment, assuming a MARR
of 15%
c) Which project or projects are acceptable?
exampleInput.txt 1 2 3 0 2 3 4 0 1 3 5 0 1 2 6...
exampleInput.txt
1 2 3
0 2 3 4
0 1 3 5
0 1 2 6
1 5 6 8
2 4 6 7
3 4 5 9 10
5 8 9
4 7 9
6 7 8
6
How can I detect when 'cin' starts reading from a new line. The
amount of numbers in each row is unknown. I need them in type 'int'
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Capital Budgeting For the following two projects, determine the 1. Payback Period 2. Discounted Payback 3....
Capital Budgeting For the following two projects, determine the
1. Payback Period 2. Discounted Payback 3. Net Present Value 4.
Profitability Index (Benefit-Cost Ratio) 5. Internal Rate of Return
6. Modified Internal Rate of Return Project A Project B Year Net
Income Cash Flow Net Income Cash Flow 0 (15,000) (19,000) 1 5,000
6,000 3,000 4,000 2 5,000 6,000 5,000 6,000 3 5000 6,000 7,000
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What is the Payback period of a project with cash flows of
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250,000 in year 4? Assume the cost of capital is 10%.
2.0 years
2.75 years
3.2 years
can't tell from information given
Consider the project in the previous question, what is its
IRR?
5.56%
9.83%
14.1%
17.54%
0. 0. 0. 0.0. 0. 0. 0. 0. 1. 1. 1. 1. 1. 1. 2. 2. 2. 3. 4.
0. 0. 0. 0.0. 0. 0. 0. 0. 1. 1. 1. 1. 1. 1. 2. 2. 2.
3. 4.
A.)MEAN –
B.)MEDIAN -
C.)MODE -
D.)STANDARD DEVIATION –
E.)5 NUMBER SUMMARY –
F.)BOX AND WHISKERS PLOT –
G.) OUTLIERS-
0. 0. 0. 0.0. 0. 0. 0. 0. 1. 1. 1. 1. 1. 1. 2. 2. 2. 3. 4.
0. 0. 0. 0.0. 0. 0. 0. 0. 1. 1. 1. 1. 1. 1. 2. 2. 2.
3. 4.
A.)5 NUMBER SUMMARY –
B.)BOX AND WHISKERS PLOT –
C.) OUTLIERS-
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