A project that costs $3,100 to install will provide annual cash flows of $810 for each...
|
A project that costs $3,100 to install will provide annual cash flows of $810 for each of the next 6 years. |
| a. |
Calculate the NPV if the opportunity cost of capital is 11%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
| NPV | $ |
| b. | Is this project worth pursuing? |
|
| c. |
What is the project's internal rate of return IRR? (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
| IRR | % |
Homework Answers
a.Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate
=810[1-(1.11)^-6]/0.11
=810*4.23053785
=3426.74
NPV=Present value of inflows-Present value of outflows
=3426.74-3100
=$326.74(Approx).
b.Hence since project has positive NPV;project is worth pursuing(Yes).
c.Let irr be x%
At irr,present value of inflows=present value of outflows.
3100=810/1.0x+810/1.0x^2+...........+810/1.0x^6
Hence x=irr=14.59%(Approx).
Add Answer to:
A project that costs $3,100 to install will provide annual cash
flows of $810 for each...
A project that costs $3,200 to Install will provide annual cash flows of $820 for each...
A project that costs $3,200 to Install will provide annual cash flows of $820 for each of the next 7 years. a. Calculate the NPV if the opportunity cost of capital is 12%? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) NPV $ b. Is this project worth pursuing? Yes NO c. What is the project's Internal rate of return IRR? (Do not round Intermediate calculations. Round your answer to 2 decimal places.)
A project that costs $2,800 to Install will provide annual cash flows of $780 for each...
A project that costs $2,800 to Install will provide annual cash flows of $780 for each of the next 6 years. a Calculate the NPV If the opportunity cost of capital is 10%? (Do not round Intermediate calculations. Round your answer to 2. decimal places.) NPV b. Is this project worth pursuing? Yes No c. What is the project's Internal rate of return IRR? (Do not round Intermediate calculations. Round your answer to 2 decimal places.)
NPV and IRR A project that costs $712,277.54 to install will provide annual cash flows of...
NPV and IRR A project that costs $712,277.54 to install will provide annual cash flows of $144,000.00 for each of the next 9 years. a. Calculate the NPV if the discount rate is 7.40%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) NPV $ b. Is this project worth pursuing? Yes No c. How high can the discount rate be before you would reject the project (i.e. What is the projects IRR)? (Do not round intermediate...
NEO A project that costs $3,700 to install will provide annual cash flows of $1150 for...
NEO A project that costs $3,700 to install will provide annual cash flows of $1150 for each of the next 6 years. a. What is NPV if the discount rate is 11%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) NPV b. How high can the discount rate be before you would reject the project? (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Discount rate 5
A project that provides annual cash flows of $2,650 for nine years costs $10,900 today. At...
A project that provides annual cash flows of $2,650 for nine years costs $10,900 today. At a required return of 8 percent, what is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV At a required return of 24 percent, what is the NPV of the project? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2...
A project that will provde annual cash flows of $2,750 for nine years costs $9.000 today,...
A project that will provde annual cash flows of $2,750 for nine years costs $9.000 today, a. At a required return of 10 percent, what is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. At a required return of 29 percent, what is the NPV of the project? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer...
A project that provides annual cash flows of $2,620 for eight years costs $9,430 today. a....
A project that provides annual cash flows of $2,620 for eight years costs $9,430 today. a. At a required return of 8 percent, what is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. At a required return of 24 percent, what is the NPV of the project? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to...
A project that will provde annual cash flows of $2,550 for nine years costs $10,500 today....
A project that will provde annual cash flows of $2,550 for nine years costs $10,500 today. a. At a required return of 11 percent, what is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. At a required return of 27 percent, what is the NPV of the project? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer...
A project that will provde annual cash flows of $3,000 for nine years costs $10,000 today....
A project that will provde annual cash flows of $3,000 for nine years costs $10,000 today. a. At a required return of 10 percent, what is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. At a required return of 28 percent, what is the NPV of the project? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer...
The following are the cash flows of two projects: Year Project A Project B 0 −$260...
The following are the cash flows of two projects: Year Project A Project B 0 −$260 −$260 1 140 160 2 140 160 3 140 160 4 140 a. If the opportunity cost of capital is 11%, calculate NPV for both projects? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Project NPV A $ B b. Which of these projects is worth pursuing if you...
A project that costs $3,200 to Install will provide annual cash flows of $820 for each of the next 7 years. a. Calculate the NPV if the opportunity cost of capital is 12%? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) NPV $ b. Is this project worth pursuing? Yes NO c. What is the project's Internal rate of return IRR? (Do not round Intermediate calculations. Round your answer to 2 decimal places.)
A project that costs $2,800 to Install will provide annual cash flows of $780 for each of the next 6 years. a Calculate the NPV If the opportunity cost of capital is 10%? (Do not round Intermediate calculations. Round your answer to 2. decimal places.) NPV b. Is this project worth pursuing? Yes No c. What is the project's Internal rate of return IRR? (Do not round Intermediate calculations. Round your answer to 2 decimal places.)
NEO A project that costs $3,700 to install will provide annual cash flows of $1150 for each of the next 6 years. a. What is NPV if the discount rate is 11%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) NPV b. How high can the discount rate be before you would reject the project? (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Discount rate 5
A project that provides annual cash flows of $2,650 for nine years costs $10,900 today. At a required return of 8 percent, what is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV At a required return of 24 percent, what is the NPV of the project? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2...
A project that will provde annual cash flows of $2,750 for nine years costs $9.000 today, a. At a required return of 10 percent, what is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. At a required return of 29 percent, what is the NPV of the project? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer...
A project that provides annual cash flows of $2,620 for eight years costs $9,430 today. a. At a required return of 8 percent, what is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. At a required return of 24 percent, what is the NPV of the project? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to...
A project that will provde annual cash flows of $2,550 for nine years costs $10,500 today. a. At a required return of 11 percent, what is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. At a required return of 27 percent, what is the NPV of the project? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer...
A project that will provde annual cash flows of $3,000 for nine years costs $10,000 today. a. At a required return of 10 percent, what is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. At a required return of 28 percent, what is the NPV of the project? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer...
Most questions answered within 3 hours.
-
In the following reaction, which element is undergoing
oxidation: Na2SO3 + N2O --> N2 + Na2SO4...
asked 26 minutes ago -
Which of the following pairs of ions have the same electron
configuration?
I: Br− and Se2−...
asked 3 hours ago -
The Foremost Composite Materials Company is planning a two-day
sales conference for October 19-20. The conference...
asked 3 hours ago -
3) Illustrate the observed pattern of relatedness of organisms
versus adaptations to specific conditions. This means...
asked 3 hours ago -
In winter a lake has a 0.35 m thick ice layer over 1.10 m of
water....
asked 4 hours ago -
Assuming the following has been encrypted with a Vigenere cipher
below, use the method(s) and assumptions...
asked 5 hours ago -
How would I use switch statements to write a program that will
take an input of...
asked 4 hours ago -
Imagine a reaction in which methane gas combusts at a constant
pressure of 1 atm and...
asked 5 hours ago -
Two parallel wires (each 12 m in length) are separated by a
distance of 0.065 m...
asked 5 hours ago -
Suppose there were three masses at the corner of uniform
equilateral triangle. The masses are m1...
asked 5 hours ago -
Situation: A building that is 618 m above the ground floor. How
many times would a...
asked 5 hours ago -
help me and discuss one successful and one
unsuccessful international company/busines in Indonesia.whyit
succeed and why...
asked 5 hours ago