Global Investments is considering a project that will produce cash inflows of $11,000 in year 1, $24,000 in year 2, and $36,000 in year 3. What is the present value of these cash inflows if the company assigns the project a discount rate of 12 percent?
Present value of these cash inflows = $11,000/1.12 + $24,000/1.122 + $36,000/1.123
Present value of these cash inflows = $54,578.17
Global Investments is considering a project that will produce cash inflows of $11,000 in year 1,...
The Black Horse is currently considering a project that will produce cash inflows of $11,000 a year for three years followed by $6,500 in Year 4. The cost of the project is $38,000. What is the profitability index if the discount rate is 9 percent? A. .85 B. .93 C. 1.04 D. 1.09 E. 1.12
Company X is currently considering a project that will produce cash inflows of $9,000 a year for two years followed by $6,500 a year for three more years. The cost of the project is $25,000. What is the profitability index if the discount rate is 8 percent? Possible Answers: 1.22 1.30 1.47 1.53 1.60
Irwin Industries is currently considering a project that will produce cash inflows of $8,000 a year for two years followed by $6,500 a year for three more years. The cost of the project is $26,000. What is the profitability index if the discount rate is 8%?
Homer is considering a project with cash inflows of $950 in year 1, $900 in year 2, $1,000 in year 3 respectively. The project has a required discount rate of 11 percent and an initial cost of $2,100. What is the discounted payback period? A. 0-1 years B. 1-2 years C. 2-3 years D. more than 3 years
Davis Chili Company is considering an investment of $48,000, which produces the following inflows: Year Cash Flow 1 $21,000 2 20,000 3 17,000 a. Determine the net present value of the project based on a zero percent discount rate. Net present value b. Determine the net present value of the project based on a 9 percent discount rate. (Do not round intermediate calculations and round your answer to 2 decimal places.) Net present value c. Determine the net present value...
A project will produce cash inflows of $3,100 a year for 3 years with a final cash inflow of $4,400 in year 4. The project's initial cost is $10,400. What is the net present value if the required rate of return is 16 percent? -$311.02 -$1,007.66 $1,168.02 $1,650.11 $2,188.98
Davis Chili Company is considering an investment of $50,000, which produces the following inflows: Year Cash Flow 1 $ 22,000 2 21,000 3 18,000 Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. A. Determine the net present value of the project based on a zero percent discount rate. B. Determine the net present value of the project based on a 10 percent discount rate. (Do not round intermediate calculations...
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...
Keller Construction is considering two new investments. Project E calls for the purchase of earthmoving equipment. Project H represents an investment in a hydraulic lift. Keller wishes to use a net present value profile in comparing the projects. The investment and cash flow patterns are as follows: Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. Project H ($21,000 Investment) Project E ($22,000 Investment) Year Cash Flow Year Cash Flow...
Keller Construction is considering two new investments. Project E calls for the purchase of earthmoving equipment. Project H represents an investment in a hydraulic lift. Keller wishes to use a net present value profile in comparing the projects. The investment and cash flow patterns are as follows: Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. Project H ($27,000 Investment) Project E ($32,000 Investment) Cash Flow Cash Flow Year Year...