rate positively..
ans a) | i | ii | iii | iv=ii*iii | ||
year | Cash flow | PVIF @ 10% | Present value | |||
0 | -27300 | 1.0000 | (27,300.00) | |||
1 | 11300 | 0.9091 | 10,272.73 | |||
2 | 14300 | 0.8264 | 11,818.18 | |||
3 | 10300 | 0.7513 | 7,738.54 | |||
2,529.45 | ||||||
NPV = | 2,529.45 | |||||
ans b) | We can see that NPV is positive at 10% rate of return. | |||||
therefore project should be ACCEPTED | ||||||
Ans = Yes | ||||||
ans c) | ||||||
i | ii | iii | iv=ii*iii | |||
year | Cash flow | PVIF @ 26% | Present value | |||
0 | -27300 | 1.0000 | (27,300.00) | |||
1 | 11300 | 0.7937 | 8,968.25 | |||
2 | 14300 | 0.6299 | 9,007.31 | |||
3 | 10300 | 0.4999 | 5,149.03 | |||
(4,175.41) | ||||||
NPV = | (4,175.41) | |||||
ans d) | We can see that NPV is negative at 26% rate of return | |||||
therefore project should not be accepted. | ||||||
Ans = No | ||||||
A firm evaluates all of its projects by applying the NPV decision rule. A project under...
A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Year 0 Cash Flow -$28,300 12,300 15,300 11,300 2 3 What is the NPV for the project if the required return is 11 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV 3461.37 At a required return of 11 percent, should the firm accept this project? Yes No What is...
A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Year Cash Flow 0 -$28,300 12,300 15,300 11,300 What is the NPV for the project if the required return is 11 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e... 32.16.) NPV At a required return of 11 percent, should the firm accept this project? ONO Yes What is the NPV for...
A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Year Cash Flow 0 –$ 27,900 1 11,900 2 14,900 3 10,900 What is the NPV for the project if the required return is 10 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV $ At a required return of 10 percent, should the firm accept...
A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Year O Cash Flow -$27,800 11,800 14,800 10,800 What is the NPV for the project if the required return is 11 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV At a required return of 11 percent, should the firm accept this project? No Yes What is the NPV for...
A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Year Cash Flow -$34,000 15,000 17,000 13,000 What is the NPV of the project if the required return is 11 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV At a required return of 11 percent, should the firm accept this project? Yes O No What is the NPV of...
A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Year Cash Flow O $28,700 12,700 15,700 11,700 What is the NPV for the project of the required return is 12 percent? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 3216.) NP At a required return of 12 percent, should the firm accept this project? NO Yes What is the NPV for...
A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: YearCash Flow -$34,000 15,000 7,000 13,000 0 :3 What is the NPV of the project if the required return is 11 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV What is the NPV of the project if the required return is 24 percent? (A negative answer should be indicated...
A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Year Cash Flows 0 -3883 1 1642 2 2177 3 1967 What is the NPV for the project if the required return is 25 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
Chapters 12, 13,9) Saved A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Year Cash Flow 0 28,400 1 12,400 2 15,400 11,400 What is the NPV for the project if the required return is 12 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g. 32.16.) NPV 18.24 ces At a required return of 12 percent, should the firm accept this...
I need help with this question A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Year Cash Flow $28,600 0 1 12,600 15,600 11,600 2 3 What is the NPV for the project if the requi intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) return is 11 percent? (Do not round NPV At a required return of 11 percent, should the firm accept...