Project A costs $5,500 and will generate annual after-tax net cash inflows of $1,700 for five years. What is the NPV using 12% as the discount rate? Round your present value factor to three decimal places and final answer to the nearest dollar.
Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate
=1700[1-(1.12)^-5]/0.12
=1700*3.605
=6128.5
NPV=Present value of inflows-Present value of outflows
=6128.5-5500
=$629(Approx).
Project A costs $5,500 and will generate annual after-tax net cash inflows of $1,700 for five...
Project A costs $5,400 and will generate annual after-tax net cash inflows of $1,800 for five years. What is the NPV using 5% as the discount rate? Round your present value factor to three decimal places and final answer to the nearest dollar.
a. Project A costs $5,500 and will generate annual after-tax net cash inflows of $2,600 for 5 years. What is the payback period for this investment under the assumption that the cash inflows occur evenly throughout the year? (Round your answer to 2 decimal places.) b. Project B costs $5,500 and will generate after-tax cash inflows of $660 in year 1, $1,400 in year 2, $2,400 in year 3, $2,700 in year 4, and $2,400 in year 5. What is...
Project B cost $4,900 and will generate after-tax net cash inflows of $500 in year one, $1,300 in year two, $2,000 in year three, $2,500 in year four, and $2,000 in year five. What is the NPV using 12% as the discount rate? Round your present value factor to three decimal places and the rest to nearest dollar.
12-9. Answer each independent question, (a) through (e), below. a. Project A costs $7,500 and will generate annual after-tax net cash inflows of $3,100 for 5 years. What is the payback period for this investment under the assumption that the cash inflows occur evenly throughout the year? (Round your answer to 2 decimal places.) b. Project B costs $7,500 and will generate after-tax cash inflows of $1,000 in year 1, $1,900 in year 2, $3,300 in year 3, $2,900 in...
Answer each independent question, (a) through (e), below. a. Project A costs $9.500 and will generate annual after-tax net cash inflows of $3,650 for 5 years. What is the payback period for this investment under the assumption that the cash inflows occur evenly throughout the year? (Round your answer to 2 decimal places.) b. Project B costs $9.500 and will generate after-tax cash inflows of $850 in year 1, $2.350 in year 2. $4,200 in year 3. $3,350 in year...
Answer each independent question, (a) through (e) below. a. Project A costs $6,000 and will generate annual after-tax net cash inflows of $2,650 for 5 years. What is the payback period for this investment under the assumption that the cash inflows occur evenly throughout the year? (Round your answer to 2 decimal places.) b. Project B costs $6,000 and will generate after-tax cash inflows of $850 in year 1, $1,450 in year 2, $2,500 in year 3, $2,750 in year...
Answer each independent question, (a) through (e), below. a. Project A costs $8,500 and will generate annual after-tax net cash inflows of $3,550 for 5 years. What is the payback period for this investment under the assumption that the cash inflows occur evenly throughout the year? (Round your answer to 2 decimal places.) b. Project B costs $8,500 and will generate after-tax cash inflows of $750 in year 1, $2,250 in year 2, $4,000 in year 3, $3,250 in year...
Please answer only e1, e2, e3 and e4 a. Project A costs $7,000 and will generate annual after-tax net cash inflows of $2,850 for 5 years. What is the payback period for this investment under the assumption that the cash inflows occur evenly throughout the year? (Round your answer to 2 decimal places.) b. Project B costs $7,000 and will generate after-tax cash inflows of $950 in year 1, $1,850 in year 2, $2,900 in year 3, $2,850 in year...
Answer each independent question, (a) through (e), below. a. Project A costs $8,000 and will generate annual after-tax net cash inflows of $3,250 for 5 years. What is the payback period for this investment under the assumption that the cash inflows occur evenly throughout the year? (Round your answer to 2 decimal places.) b. Project B costs $8,000 and will generate after-tax cash inflows of $1,250 in year 1, $1,950 in year 2, $3,400 in year 3, $2,950 in year...
Answer each independent question, (a) through (e), below. a. Project A costs $9,500 and will generate annual after-tax net cash inflows of $3,650 for 5 years. What is the payback period for this investment under the assumption that the cash inflows occur evenly throughout the year? (Round your answer to 2 decimal places.) b. Project B costs $9,500 and will generate after-tax cash inflows of $850 in year 1, $2,350 in year 2, $4,200 in year 3, $3,350 in year...