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In: Finance
Consider a project with an initial outlay of $1,000 and yearly cash flows as follows: -300,...
Consider a project with an initial outlay of $1,000 and yearly cash flows as follows: -300, -100, 200, 300, 300, 100, 100, 200, 600, 400, and 100. Calculate the classical payback period assuming 10% cost of funds. Round your final answer to two decimal places.
(please use excel step-by-step showing formulas) (NEED ANSWER ASAP)
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jeff jeffy answered 1 year agoRelated Solutions
Consider a project with an initial outlay of $1,000 and yearly cash flows as follows: -300,...
Consider a project with an initial outlay of $1,000 and yearly
cash flows as follows: -300, -100, 200, 300, 300, 100, 100, 200,
600, 400, and 100. Calculate the classical payback period assuming
10% cost of funds. Round your final answer to two decimal places.
(please show step-by-step using formulas) (NEED ANSWER ASAP)
A project has an initial outlay of $3,640. The project will generate cash flows of $4,565...
A project has an initial outlay of $3,640. The project will
generate cash flows of $4,565 in Years 1-5. What is the Equivalent
Annual Annuity (EAA) of this project? Assume an interest rate of
11%.
Note: Enter your answer rounded off to two decimal points. Do
not enter $ or comma in the answer box. If your answer is negative,
enter your answer as a negative number rounded off to two decimal
points.
A project has an initial outlay of $2,378. The project will generate annual cash flows of...
A project has an initial outlay of $2,378. The project will
generate annual cash flows of $660 over the 4-year life of the
project and terminal cash flows of $202 in the last year of the
project. If the required rate of return on the project is 13%, what
is the net present value (NPV) of the project?
Note: Enter your answer rounded off to two decimal points. Do
not enter $ or comma in the answer box.
You are considering a project with an initial cash outlay of $72,000 and expected cash flows...
You are considering a project with an initial cash outlay of
$72,000 and expected cash flows of $22,320 at the end of each
year for six years. The discount rate for this project is 10.5
percent.
a. What are the project's payback and
discounted payback periods?
b. What is the project's NPV?
c. What is the project's PI?
d. What is the project's IRR?
a. The payback period of the project is nothing years.
You are considering a project with an initial cash outlay of $87000 and expected cash flows...
You are considering a project with an initial cash outlay of
$87000 and expected cash flows of $23490 at the end of each year
for six years. The discount rate for this project is 10.1
percent.
a. What are the project's payback and discounted payback
periods?
b. What is the project's NPV?
c. What is the project's PI?
d. What is the project's IRR?
Given the following free cash flows, PROJECT A PROJECT B PROJECT C Initial outlay -70,000 ...
Given the following free cash flows,
PROJECT A PROJECT B PROJECT
C
Initial outlay -70,000 -140,000
-450,000
Cash inflows:
Year 1 12,000 120,000 220,000
Year 2 18,000 30,000 220,000
Year 3 22,000 30,000 220,000
Year 4 28,000 30,000 --------
Year 5 32,000 30,000 ---------
What is the IRR of project A?
What is the IRR of project B?
What is the IRR of project C?
determine the IRR for the three independent projects A, B, and
C
Consider a project lasting one year only. The initial outlay is $1,000 and the expected inflow...
Consider a project lasting one year only. The initial outlay is
$1,000 and the expected inflow is $1,240. The opportunity cost of
capital is r = 0.24. The borrowing rate is
rD = 0.10, and the tax shield per dollar of
interest is Tc = 0.21. ( Do not round
intermediate calculations. Round your answers to 2 decimal places.
Leave no cells blank - be certain to enter "0" wherever
required.)
a. What is the project’s base-case NPV?
b. What...
Costco, Inc. is conducting a new project with the following estimated cash flows. The initial outlay...
Costco, Inc. is conducting a new project with the
following estimated cash flows. The initial outlay is estimated to
be $1,950,000, and the incremental cash flows generated by this
project would be $650,000 per year for 7 years. The estimated
required rate of return of the project is 6%.
a. Calculate the NPV.
b. Calculate the PI.
c. Calculate the IRR.
d. Should this project be accepted?
1.Project A requires an initial outlay at t = 0 of $4,000, and its cash flows...
1.Project A requires an initial outlay at t = 0 of $4,000, and
its cash flows are the same in Years 1 through 10. Its IRR is 13%,
and its WACC is 12%. What is the project's MIRR? Do not round
intermediate calculations. Round your answer to two decimal
places.
%
2.Project L requires an initial outlay at t = 0 of $47,000, its
expected cash inflows are $14,000 per year for 12 years, and its
WACC is 10%. What...
Premium Soccer Ball Company is considering a project with the following relevant cash flows: Initial Outlay...
Premium Soccer Ball Company is considering a project with the
following relevant cash flows: Initial Outlay = $750,000
Incremental Cash Flows from Operations Year 1-4 = $250,000 per year
Terminal Cash Flow at the End of Year 4 = $40,000 Compute the net
present value of this project if the firm's cost of capital is
12%
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