1.
A proposed project has an initial cost of $69,500 and is expected to produce cash inflows of $32,200, $50,500, and $43,000 over the next 3 years, respectively. What is the net present value of this project at a discount rate of 15.8 percent? |
$23,657.30
$21,763.60
$24,050.28
$24,933.59
2.
A project has an initial cost of $19,000 and cash inflows of $4,200, $4,600, $11,600, and $5,750 over the next 4 years, respectively. What is the payback period? |
4.22 years
2.88 years
3.22 years
1.88 years
3.
A project has an initial cash outflow of $1,010 and cash inflows of $290 per year for 4 years. What is the discounted payback period at a discount rate of 9.2 percent? |
Never
3.80 years
3.49 years
2.87 years
4.
A project has an initial cost of $56,700 and is expected to produce cash inflows of $19,700, $27,800, and $45,100 over the next 3 years, respectively. What is the project’s internal rate of return? |
26.56 percent
17.17 percent
19.23 percent
24.94 percent
5.
Nelson’s Industrial Supply is considering a project that has projected cash inflows of $5,800 a year for 3 years. The initial cost of the project is $15,000 and the required return is 13.00 percent. Should this project be accepted based on the profitability index criterion? Why or why not? |
no; because the PI is .91
no; because the PI is 1.51
yes; because the PI is 1.51
yes; because the PI is .91
Please answer all the questions. Thank you.
1. A proposed project has an initial cost of $69,500 and is expected to produce cash...
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Nelson’s Industrial Supply is considering a project that has projected cash inflows of $8,400 a year for 3 years. The initial cost of the project is $21,000 and the required return is 10.75 percent. Should this project be accepted based on the profitability index criterion? Why or why not? multiple choice: Multiple Choice no; because the PI is 1.54 yes; because the PI is 1.54 yes; because the PI is .98 no; because the PI is .98
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A project has an initial cost of $8,900 and produces cash inflows of $2,700, $4,900, and $1,500 over the next three years, respectively. What is the discounted payback period if the required rate of return is 7 percent? a. 2.98 years b. 2.28 years c. 2.14 years d. 2.87 years e. never Can you show me how to do this in excel? Thank you
A project has an initial cost of $42,200, expected net cash inflows of $12,000 per year for 9 years, and a cost of capital of 13%. What is the project's PI? Do not round your intermediate calculations. Round your answer to two decimal places. A project has an initial cost of $56,300, expected net cash inflows of $14,000 per year for 9 years, and a cost of capital of 11%. What is the project's payback period? Round your answer to...
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An investment project has annual cash inflows of $5,400, $6,500, $7,300 for the next four years, respectively, and $8,600, and a discount rate of 10 percent. What is the discounted payback period for these cash flows if the initial cost is $9,000? 1.76 years 2.51 years 0.76 years 1.26 years 3.52 years
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