The initial outlay for a project (cost) is $480,670 for a seven-year project. If the future...
The initial outlay for a project (cost) is $480,670 for a seven-year project. If the future net cash flows from Assets are respectively for years 1 through seven: $100,000; $120,000; $59,000; $58,000; $102,000; $280,000; and $45,000. If the required return is 6.3%,
A) What is the NPV of the project?
B) What is the payback period without discounting cash flows?
C) What is the profitability index?
D) What is the IRR?
D)
Homework Answers
Add Answer to:
The initial outlay for a project (cost) is $480,670 for a
seven-year project. If the future...
You are considering a project that will require an initial outlay of $400,000. This project has...
You are considering a project that will require an initial outlay of $400,000. This project has an expected life of four years and will generate after-tax cash flows to the company as a whole of $120,000 at the end of each year over its five-year life. Thus, the free cash flows associated with this project look like this: Year Free Cash Flow 0 -150,000 1 120,000 2 120,000 3 120,000 4 120,000 Given a required rate of return of 20%...
You are considering a project with an initial cash outlay of $75,000 and expected cash flows...
You are considering a project with an initial cash outlay of $75,000 and expected cash flows of $21,750 at the end of each year for six years. The discount rate for this project is 9.7 percent. a. What are the project's payback and discounted payback periods? b. What is the project's NPV? c. What is the project's PI? d. What is the project's IRR?
you are considering a project with an initial cash outlay of $74,000 and expected cash flows...
you are considering a project with an initial cash outlay of $74,000 and expected cash flows of $23,680 at the end of each year for six years. the discount rate for the project is 9.7 percent. a. what are the project's payback discounted payback periods? - if the discount rate for this project is 9.7 percent, the discounted payback period of the project is how many years? b. what is the projects NPV? c. what is the project's PI? d....
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 $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?
You are considering a project with an initial cash outlay of $75,000 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?
Moepro, Inc. is considering a five - year project that has an initial outlay or cost...
Moepro, Inc. is considering a five - year project that has an
initial outlay or cost of $120,000. The respective future
cashinflows from its projects for years 1, 2, 3, 4, and 5 are:
$55,000, $45,000, $35,000, $25,000, and $15,000. Moepro uses the
internal rate of return method to evaluate projects. What is the
projects IRR?
The IRR is over 25.50%
The IRR is about 19.16%
The IRR is less than 22.5%
The IRR is about 17.86%
Moepro Inc. is.coming...
11. You are considering a project with a ring a project with an initial cash outlay...
11. You are considering a project with a ring 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 ura at the end of each year for 5 years. The required rate of return for this project is 12% A. Calculate the project's payback period. (2p) B. Calculate the project's NPV. (4p) C. Calculate the project's PI. (10) D. State the meaning of IRR and...
Project LMK requires an initial outlay of $400,000 and has a profitability index of 1.5. The...
Project LMK requires an initial outlay of $400,000 and has a profitability index of 1.5. The project is expected to generate equal annual cash flows over the next twelve years. The required return for this project is 20%. What is project LMK's net present value? A. $600,000 B. $80,000 C. $120,000 D. $150,000 i found the same solution but the different answers so please can you check it for me
(Payback period, NPV, PI, and IRR calculations) You are considering a project with an initial cash...
(Payback period, NPV, PI, and IRR calculations) You are considering a project with an initial cash outlay of $85.000 and expected free cash flows of $20,000 at the end of each year for 7 years. The required rate of return for this project is 6 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?
(Payback period, NPV, PI, and IRR calculations )You are considering a project with an initial cash...
(Payback period, NPV, PI, and IRR calculations )You are considering a project with an initial cash outlay of 90,000 and expected free cash flows of 30,000 at the end of each year for 6 years. The required rate of return for this project is 8 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 ?
Moepro, Inc. is considering a five - year project that has an
initial outlay or cost of $120,000. The respective future
cashinflows from its projects for years 1, 2, 3, 4, and 5 are:
$55,000, $45,000, $35,000, $25,000, and $15,000. Moepro uses the
internal rate of return method to evaluate projects. What is the
projects IRR?
The IRR is over 25.50%
The IRR is about 19.16%
The IRR is less than 22.5%
The IRR is about 17.86%
Moepro Inc. is.coming...
11. You are considering a project with a ring 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 ura at the end of each year for 5 years. The required rate of return for this project is 12% A. Calculate the project's payback period. (2p) B. Calculate the project's NPV. (4p) C. Calculate the project's PI. (10) D. State the meaning of IRR and...
Most questions answered within 3 hours.
-
Hydrobromic acid
dissolves solid iron according to the followiaung reaction:
Fe(s)+2HBr(aq)→
FeBr2(aq)+ H2(g)
Part A. What...
asked 1 hour ago -
Verify the following vector identity in SPHERICAL
COORDINATES.
div(curl(A)) = 0
asked 2 hours ago -
The work function (Φ) for a metal is 7.50×10-19 J.
What is the longest wavelength (nm)...
asked 3 hours ago -
1. Would the following procedural changes cause the
calculated mass percent Ni2+ ion in Ni(NH3)nCl2 to...
asked 4 hours ago -
1. Why does the voltage of the capacitor vary with frequency?
where does this missing voltage...
asked 6 hours ago -
p p please write each step out clearly
3. A manager of a company is considering...
asked 5 hours ago -
On October 1, Ebony Ernst organized Ernst Consulting; on October
3, the owner contributed $83,540 in...
asked 6 hours ago -
A.)As an electron moves through a region of space, its speed
decreases from 9.60 × 106...
asked 6 hours ago -
In java with the netbeans program do:
Through object programming
Create a class "ContadorP", which is...
asked 6 hours ago -
Pattern Corporation acquired all of Science
Company's outstanding stock on January 1, 2016 for $600,000 cash....
asked 6 hours ago -
Here are all accounts Tyler Co. maintains.
Tax expenses $4,750
Common stocks $48,840
SG&A expenses $2,500...
asked 7 hours ago -
Lis
out the types and equation of wind profile and the respective
variables in the fds...
asked 7 hours ago