1.
=-250000-250000/1.075+50000/7.5%=184108.527131783
2.
=-2400+1600/1.1+1900/1.1^2+600/1.1^3=1075.5822689707
False Question 3 (1 point) A firm is considering an investment project that costs $250,000 today...
Question 3 (1 point) A firm is considering an investment project that costs $250,000 today and $250,000 in one year, but would produce benefits of $50,000 a year, starting in one year, forever. What is the NPV of this investment project if the firm applies an annual discount rate of 6.3% to all future cash flows? Your Answer: Answer Question 4 (1 point) Rockmont Recreation Inc. is considering a project that has the following cash flow and WACC (weighted average...
A firm is considering an investment project that costs $250,000 today and $250,000 in one year, but would produce benefits of $50,000 a year, starting in one year, forever. What is the NPV of this investment project if the firm applies an annual discount rate of 6.9% to all future cash flows? Your Answer: Answer
A firm is considering an investment project that costs $250,000 today and $250,000 in one year, but would produce benefits of $50,000 a year, starting in one year, forever. What is the NPV of this investment project if the firm applies an annual discount rate of 7.1% to all future cash flows?
The cash flows associated with an investment project are an immediate cost of $1600 and benefits of $500 in one year, $1500 in two years, and $1700 in three years. The cost of capital (WACC) is 10%. What is the project's NPV? Your Answer:
The cash flows associated with an investment project are an immediate cost of $2300 and benefits of $1200 in one year, $800 in two years, and $2000 in three years. The cost of capital (WACC) is 10%. What is the project's NPV? Your Answer: Answer Hide hint for Question 6 NPV is the sum of the discounted cash flows. A firm is considering a potential investment project that would result in an immediate loss in free cash flow of $116...
Question 3 (1 point) A firm is considering a potential investment project that would result in an immediate loss in free cash flow of $110 Million, but would generate positive free cash flow of $6 Million next year. The firm expects the free cash flow produced by the project to grow annually at 3% forever. The firm's weighted average cost of capital (WACC) is 6%. What is the NPV of the project? (Enter your answer in millions of dollars rounded...
Question 6 (0.2 points) The cash flows associated with an investment project are an immediate cost of $1700 and benefits of $1700 in one year, $1300 in two years, and $500 in three years. The cost of capital ( WACC) is 10%. What is the project's NPV? Your Answer: Answer ► View hint for Question 6
22) A firm has an effective (after-tax) cost of debt of 3%, and its weight of debt is 40%. Its equity cost of capital is 11%, and its weight of equity is 60%. Calculate the firm’s weighted average cost of capital (WACC). [Enter your answer as a decimal rounded to four decimal places.] 23) A firm is considering an investment project that costs $250,000 today and $250,000 in one year, but would produce benefits of $50,000 a year, starting in...
i need help with these two questions Question 22 (1 point) A firm has an effective (after-tax) cost of debt of 4%, and its weight of debt is 40%. Its equity cost of capital is 12%, and its weight of equity is 60%. Calculate the firm's weighted average cost of capital (WACC). [Enter your answer as a decimal rounded to four decimal places.] Your Answer: Answer D View hint for Question 22 Question 23 (1 point) A firm is considering...
Question 7 (0.2 points) A firm is considering a potential investment project that would result in an immediate loss in free cash flow of $114 Million, but would generate positive free cash flow of $7 Million next year. The firm expects the free cash flow produced by the project to grow annually at 3% forever. The firm's weighted average cost of capital (WACC) is 9%. What is the NPV of the project? (Enter your answer in millions of dollars rounded...