For the following set of cash flows, |
Year | Cash Flow |
0 | –$8,200 |
1 | 4,800 |
2 | 5,800 |
3 | 3,900 |
Required: | |
(a) | What is the NPV at a discount rate of 0 percent? |
(Click to select)$6,489$6,300.00$5,985$6,615$6,111 |
(b) | What is the NPV at a discount rate of 12 percent? |
(Click to select)$3,380.82$3,659.65$3,311.11$3,485.38$3,589.94 |
(c) | What is the NPV at a discount rate of 22 percent? |
(Click to select)$1,714.55$1,832.35$1,690.04$1,867.93$1,778.99 |
(d) | What is the NPV at a discount rate of 27 percent? |
(Click to select)$1,047.09$1,079.48$1,025.5$1,111.86$1,133.45 |
NPV = Present value of cash inflows - present value of cash outflows
a)
NPV = -8200 + 4,800 / ( 1 + 0)1 + 5,800 / ( 1 + 0)2 + 3,900 / ( 1 + 0)3
NPV = $6,300.00
b)
NPV = -8200 + 4,800 / ( 1 + 0.12)1 + 5,800 / ( 1 + 0.12)2 + 3,900 / ( 1 + 0.12)3
NPV = $3,485.38
c)
NPV = -8200 + 4,800 / ( 1 + 0.22)1 + 5,800 / ( 1 + 0.22)2 + 3,900 / ( 1 + 0.22)3
NPV = $1,778.99
d)
NPV = -8200 + 4,800 / ( 1 + 0.27)1 + 5,800 / ( 1 + 0.27)2 + 3,900 / ( 1 + 0.27)3
NPV = $1,079.48
For the following set of cash flows, Year Cash Flow 0 –$8,200 1 4,800...
For the following set of cash flows, Year Cash Flow 0 –$8,500 1 3,500 2 4,500 3 3,300 a. What is the NPV at a discount rate of 0 percent? b. What is the NPV at a discount rate of 8 percent? c. What is the NPV at a discount rate of 22 percent? d. What is the NPV at a discount rate of 27 percent?
For the following set of cash flows, YearCash Flow0–$6,300 14,500 23,300 34,500 Required:(a)What is the NPV at a discount rate of 0 percent?(Click to select)$6,300$5,700$6,180$5,820$6,000.00 (b)What is the NPV at a discount rate of 12 percent?(Click to select)$3,729.19$3,551.61$3,374.03$3,658.16$3,445.06 (c)What is the NPV at a discount rate of 25 percent?(Click to select)$1,767.48$1,630.2$1,716$1,646.88$1,801.8(d)What is the NPV at a discount rate of 30 percent?(Click to select)$1,162.45$1,104.33$1,220.57$1,197.32$1,127.58
For the following set of cash flows, Year Cash Flow 0 –$8,400 1 3,600 2 4,900 3 6,200 a. What is the NPV at a discount rate of 0 percent? b. What is the NPV at a discount rate of 8 percent? c. What is the NPV at a discount rate of 18 percent? d. What is the NPV at a discount rate of 23 percent?
For the following set of cash flows, Year Cash Flow 0 –$9,000 1 6,100 2 6,500 3 5,000 a. What is the NPV at a discount rate of 0 percent? b. What is the NPV at a discount rate of 9 percent? c. What is the NPV at a discount rate of 25 percent? d. What is the NPV at a discount rate of 30 percent?
A project has the following cash flows: Year Cash Flows 0 $-16,200 1 $6,900 2 $8,200 3 $6,700 a) What is the NPV at a discount rate of zero percent? b) What is the NPV at a discount rate of 10 percent? c) What is the NPV at a discount rate of 20 percent? d) What is the NPV at a discount rate of 30 percent?
P9-11 Calculating NPV [LO1] For the following set of cash flows, Year Cash Flow 0 –$7,000 1 6,900 2 5,200 3 5,500 Required: (a) What is the NPV at a discount rate of 0 percent? (b) What is the NPV at a discount rate of 13 percent? (c) What is the NPV at a discount rate of 20 percent? (d) What is the NPV at a discount rate of 25 percent?
For the following set of cash flows, Year Cash Flow 0 –$7,000 1 6,500 2 3,700 3 3,100 a. What is the NPV at a discount rate of 0 percent? b. What is the NPV at a discount rate of 11 percent? c. What is the NPV at a discount rate of 19 percent? d. What is the NPV at a discount rate of 24 percent?
For the following set of cash flows, YearCash Flow0–$8,000 14,800 23,500 35,200 a. What is the NPV at a discount rate of 0 percent? b. What is the NPV at a discount rate of 15 percent? c. What is the NPV at a discount rate of 23 percent?d. What is the NPV at a discount rate of 28 percent?
year cash flow 0... -8,200 1... 5,800 2... 5,300 3... 4,300 what is the profitability index for the cash flows if the relevant discount rate is 12%? what about at 20%?
For the following set of cash flows, Year Cash Flow 0 –$7,500 1 3,500 2 6,200 3. 3,700 d. What is the NPV at a discount rate of 24 percent?