you are considering a project with an initial cash outlay of $100,000 and expected free cash flow of $50,000 at the end of each year for 3 years. the required rate of return for this project is 10 percent. a. What is the project's conventional payback periods? b. What is the project's discounted payback period? c. what is the project's NPV? d. what is the project's PI? e. what is the project's IRR?
Payback | 2 years |
Discounted Payback | 2.35 |
NPV | 24342.60 |
PI | 1.24 |
IRR | 23.38% |
Payback = Year in which Cumulative CF is last negative -(Last
negative cumulative CF/ CF of next year
Discounted Payback = Year in which Discounted Cumulative CF is last
negative -(Last negative discounted cumulative CF/ CF of next
year)
Year | CF1 | Cumulative CF | DCF | Cumulative DCF |
0 | -100000 | -100000 | -100000 | -100000 |
1 | 50000 | -50000 | 45454.55 | -54545.5 |
2 | 50000 | 0 | 41322.31 | -13223.1 |
3 | 50000 | 50000 | 37565.74 | 24342.6 |
you are considering a project with an initial cash outlay of $100,000 and expected free cash...
You are considering a project with an initial cash outlay of $75,000 and expected free cash flows of $22,000 at the end of each year for 7 years. The required rate of return for this project is 9 percent. a. What is the project's payback period? b. What is the project's NPV? c. What is the project's PI? d. What is the project's IRR?
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dont use excel , use formula 11. You are considering a project with an initial cash outlay of 60.0 8 a project with an initial cash outlay of 60.000 Lira and expected free cash flows of 20.000 Lira at the end of each year for ra at the end of each year for 5 years. The required rate of return for this project is 12% (2p) A. Calculate the project's payback period. B. Calculate the project's NPV. (4p) C. Calculate...
udicates problems in Excel Study Problems All Study Problems are available in MyLab Finance. The X icon indicates problems Mylab format available in MyLab Finance. LO2 10-1. (Payback Period) What is the payback period for the following set of cash flowe YEAR CASH FLOWS --- $11,300 3,400 4,300 3,600 4,500 3,500 x 10-2. (IRR calculation) Determine the IRR on the following projects: a. An initial outlay of $10,000 resulting in a single free cash flow of $17,182 after 8 years...
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