You are considering a project with an initial cash outlay of $100,000 and expected free cash...

You are considering a project with an initial cash outlay of $100,000 and expected free

cash flows of $23,000 at the end of each year for 6 years. The required rate of return for this

project is 10 percent.

a. What is the project’s payback period?

b. What is the project’s discounted payback period?

c. What is the project’s NPV ?

d. What is the project’s PI ?

e. What is the project’s IRR ?

f. What is the project’s MIRR if the re-investment rate is 10 percent?

g. What is the project’s MIRR if the re-investment rate is 12 percent?

Solutions

Expert Solution

jeff jeffy answered 6 months ago

Next > < Previous

Related Solutions

You are considering a project with an initial cash outlay of $ 85,000 and expected free...

You are considering a project with an initial cash outlay of $ 85,000 and expected free cash flows of $ 28,000 at the end of each year for 7 years. The required rate of return for this project is 9 percent. a. What is the project's payback period? b. What is the project's NPV? c. What is the project's PI? d. What is the project's IRR?

You are considering a project with an initial cash outlay of $70,000 and expected free cash...

You are considering a project with an initial cash outlay of $70,000 and expected free cash flows of $28,000 at the end of each year for 7 years. The required rate of return for this project is 6 percent. a. What is the project's payback period? b. What is the project's NPV? c. What is the project's PI? d. What is the project's IRR?

You are considering a project with an initial cash outlay of $85,000 and expected free cash...

You are considering a project with an initial cash outlay of $85,000 and expected free cash flows of $20,000 at the end of each year for 5 years. The required rate of return for this project is 9 percent. a. What is the project's payback period? b. What is the project's NPV? c. What is the project's PI? d. What is the project's IRR? a. The project's payback period is _____years. (Round to two decimal places.) b. The project's NPV...

You are considering a project with an initial cash outlay of $75,000 and expected free cash...

You are considering a project with an initial cash outlay of $75,000 and expected free cash flows of $22,000 at the end of each year for 6 years. The required rate of return for this project is 8 percent. What is the project's NPV? What is the project's PI? What is the project's IRR?

You are considering a project with an initial cash outlay of $70,000 and expected free cash...

You are considering a project with an initial cash outlay of $70,000 and expected free cash flows of $15,500 at the end of each year for 5 years. The required rate of return for this project is 5.5 percent. a) (5 pts) What is the payback period of the project? b) (5 pts) What is the project’s NPV? c) (5 pts) What is the project’s IRR? d) (5 pts) If your firm has a required payback of 5years and passing...

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?

An investment project requires an initial outlay of $100,000, and is expected to generate annual cash...

An investment project requires an initial outlay of $100,000, and is expected to generate annual cash inflows of $28,000 for the next 5 years. The cost of capital is 12 percent. Determine the internal rate of return for the project (to the nearest tenth of one percent). a. 12.0% b. 12.6% c. 3.6% d. 12.4%

A project has an initial outlay of $100,000. It has a single cash inflow at the...

A project has an initial outlay of $100,000. It has a single cash inflow at the end of year 4 of $200,540. What is the internal rate of return for the project (round to the nearest %)? a. 15% b. 17% c. 19% d. 21%

NPV, PI, and IRR calculations) You are considering a project with an initial cash outlay of...

NPV, PI, and IRR calculations) You are considering a project with an initial cash outlay of $70,000 and expected free cash flows of $28,000 at the end of each year for 6 years. The required rate of return for this project is 7 percent. a. What is the project's payback period? b. What is the project's NPV? c. What is the project's PI? d. What is the project's IRR?

Subjects