Barcode Biz has invested in new machinery at a cost of $1,450,000. This investment is expected to produce cash flows of $640,000, $715,000, and $823,000 over the next three years. If the opportunity cost of capital is 13 per cent per annum what is the NPV of this project (rounded to the nearest dollar)?
Select one:
A. $467,273
B. $310,054
C. $299,099
D. $246,702
A company is considering an investment that will cost $852,000 and have a useful life of 7 years. The cash flows from the project are expected to be $464,000 per year in the first two $88,000 per year for the last 5 years. If the appropriate discount rate is 12.1 percent per annum, what is the NPV of this investment (to the nearest dollar)?
Select one:
a. $182965
b. $1886965
c. $200463
d. $247590
A company is in the process of constructing a new plant at a cost of $18 million. It expects the project to generate cash flows of $10 million, $6 million, and $9 million over the next three years. The cost of capital is 17.3 percent p.a. What is the net present value of this project? (in millions to three decimals)
Select one:
a. $0.462
b. $36.462
c. $-2.261
d. $1.217
Barcode Biz has invested in new machinery at a cost of $1,450,000. This investment is expected...
Barcode Biz has invested in new machinery at a cost of $1,450,000. This investment is expected to produce cash flows of $640,000, $715,250, $823,330, and $907,125 over the next four years. What is the payback period for this project (rounded to two decimal places)? Select one: A. 2.12 years B. 1.88 years C. 4.00 years D. 3.00 years.
Bambi Corporation is considering an investment that will cost $80,000 and have a useful life of 4 years. The cash flows from the project are expected to be $25,000 per year in the first two years then $20,000 per year for the last two years. If the appropriate discount rate is 10 percent per annum, what is the NPV of this investment (Rounded to the nearest dollar)? Select one: A. $10,000 B. $9.721 C. -$7,925 D. -$7,204
A company is considering an investment that will cost $927.000 and have a useful te of 6 years. The cash flows from the project are expected to be 54.36.000 per year in the first two years then $164.000 per year for the last 4 years. If the appropriate discount rate is 13.5 percent per annum, what is the NPV of this investment to the nearest dollar? Select one: a. $170362 b. 52024362 OC. $171476 O d. $278380
A company is considering an investment that will cost $868,000 and have a useful life of 6 years. The cash flows from the project are expected to be $548,000 per year in the first two years then $136,000 per year for the last 4 years. If the appropriate discount rate is 18.8 percent per annum, what is the NPV of this investment (to the nearest dollar)?
A project has an investment cost of CF50m and is expected to produce risky cash flows perpetually and which will, on average, be CF15m per annum but fluctuate with a volatility of 30% per annum. The stock market is expected to have a return of 15% per annum and is likely to experience volatility of 20% per annum. The correlation between the project’s cash flows and the market’s returns is 0.5. The central bank’s treasury bond yield is 300 basis...
A capital investment project requires an investment of £100,000 and has an expected life of four years. Annual cash flows, which occur evenly throughout 5 years amount to £45,000 per annum. The net present value of the project using a 12 percent discount rate is Select one: a. £33,732 b. £68,162 c. £62,225 d. £98,980 e. £28,162
1) A machinery upgrade project will cost $14 million, and produce cost savings of $1 million in perpetuity. What is the project NPV if the required rate of return is 11%? Enter answer in millions, to two decimal places. 2) Your company is considering a project that requires an initial investment of $12 million, and is expected to produce cash flows of $4 million each year for 10 years. At the end of year 11, the project will require site...
A new grocery store cost $30 million in initial investment. It is estimated that the store will generate after-tax cash flows of $2 million each year for the next 5 years. At the end of the 5 years, it can be sold for $40 million. What is the NPV of the project if the risk-adjusted WACC is 10%?
The cash flows associated with an investment project are an immediate cost of $2300 and benefits of $1200 in one year, $800 in two years, and $2000 in three years. The cost of capital (WACC) is 10%. What is the project's NPV? Your Answer: Answer Hide hint for Question 6 NPV is the sum of the discounted cash flows. A firm is considering a potential investment project that would result in an immediate loss in free cash flow of $116...
A project requires an initial investment of $100,000 and is expected to produce a cash inflow before tax of $27,500 per year for five years. Company A has substantial accumulated tax losses and is unlikely to pay taxes in the foreseeable future. Company B pays corporate taxes at a rate of 21% and can claim 100% bonus depreciation on the investment. Suppose the opportunity cost of capital is 10%. Ignore inflation. a. Calculate project NPV for each company. (Do not...