Blink of an Eye Company is evaluating a 5-year project that will provide cash flows of...

Question

Question

Blink of an Eye Company is evaluating a 5-year project that will provide cash flows of...

Blink of an Eye Company is evaluating a 5-year project that will provide cash flows of $40,900, $88,590, $63,490, $61,690, and $44,990, respectively. The project has an initial cost of $193,440 and the required return is 8.4 percent. What is the project's NPV?

business finance

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

NPV = PV of Cash Inflows - PV of Cash Outflows

= [$40,900 / (1 + 0.084)] + [$88,590 / (1 + 0.084)²] + [$63,490 / (1 + 0.084)³] + [$61,690 / (1 + 0.084)⁴] + [$44,990 / (1 + 0.084)⁵] - $193,440

= $37,730.63 + $75,392.15 + $49,844.53 + $44,678.40 + $30,058.66 - $193,440

= $44,264.37

Add a comment

Answer 2

Similar Homework Help Questions

Blink of an Eye Company is evaluating a 5-year project that will provide cash flows of...

Blink of an Eye Company is evaluating a 5-year project that will provide cash flows of $34,100, $53,910, $62,130, $59,820, and $42,780, respectively. The project has an initial cost of $147,200 and the required return is 7.9 percent. What is the project's NPV?
Blink of an Eye Company is evaluating a 5-year project that will provide cash flows of...

Blink of an Eye Company is evaluating a 5-year project that will provide cash flows of $34,900, $57,990, $62,290, $60,040, and $43,040, respectively. The project has an initial cost of $152,640 and the required return is 8.1 percent. What is the project's NPV?
Blink of an Eye Company is evaluating a 5-year project that will provide cash flows of...

Blink of an Eye Company is evaluating a 5-year project that will provide cash flows of $37,300, $70,230, $62,770, $60,700, and $43,820, respectively. The project has an initial cost of $168,960 and the required return is 8.7 percent. What is the project's NPV? Multiple Choice $14,983.74 $11,693.94 $19,592.02 $12,863.33 $46,018.20

A project with an initial cost of $31,400 is expected to provide cash flows of $12,000,...

A project with an initial cost of $31,400 is expected to provide cash flows of $12,000, $12,500, $15,600, and $10,100 over the next four years, respectively. If the required return is 8.4 percent, what is the project's profitability index? Ο Ο 1.205 Ο 1.479 Ο 761 Ο 1.314 Ο 1.095
IBM is evaluating a project in Eutopia. The project will create the following cash flows: Year...

IBM is evaluating a project in Eutopia. The project will create the following cash flows: Year $ 0 -1,330,000 1 250,000 2 470,000 3 450,000 4 215,000 5 95,000 All cash flows will occur in Eutopia and are expressed in dollars. In an attempt to improve its economy, the Eutopia’s government has declared that all cash flows created by a foreign company are “blocked” and must be reinvested with the government for one year. The reinvestment rate for these funds...
A company. has a project available with the following cash flows: Year Cash Flow -$32,150 13.050...

A company. has a project available with the following cash flows: Year Cash Flow -$32,150 13.050 14,740 20,780 11,960 AWN- If the required return for the project is 9.5 percent, what is the project's NPV?!

Carland, Inc., has a project available with the following cash flows. If the required return for...

Carland, Inc., has a project available with the following cash flows. If the required return for the project is 8.4 percent, what is the project's NPV? Cash Flow Year -$263,000 0 72,300 2 95,900 120,300 3 4 72,900 12,500 5 O H N M Ln
A project with an initial cost of $30,000 is expected to provide cash flows of $9,900,...

A project with an initial cost of $30,000 is expected to provide cash flows of $9,900, $11,100, $14,200, and $8,700 over the next four years, respectively. If the required return is 8.5 percent, what is the project's profitability index? Multiple Choice .999 1198 1.098 .835 1.348
A project with an initial cost of $58,000 is expected to provide annual cash flows of...

A project with an initial cost of $58,000 is expected to provide annual cash flows of $11,250 over the 7-year life of the project. If the required return is 9.4 percent, what is the project's profitability index? .963 1.084 1.038 .803 .883

A project is expected to provide cash flows of $11,700, $12,300, $15,400, and $9,900 over the...

A project is expected to provide cash flows of $11,700, $12,300, $15,400, and $9,900 over the next four years, respectively. At a required return of 8.2 percent, the project has a profitability index of .713. For this to be true, what is the project's cost at Time 0?

Blink of an Eye Company is evaluating a 5-year project that will provide cash flows of...

Homework Answers

Add Answer to:
Blink of an Eye Company is evaluating a 5-year project that will provide cash flows of...

Post as a guest

Earn Coins