1.
=Present Value of cash flows
=-1510000+128000/(13%-6.1%)
=345072.4638
2.
=13%-128000/1510000
=4.5232%
The Yurdone Corporation wants to set up a private cemetery business. According to the CFO, Barry...
The Yurdone Corporation wants to set up a private cemetery business. According to the CFO, Barry M. Deep, business is "looking up." As a result, the cemetery project will provide a net cash inflow of $118,000 for the firm during the first year, and the cash flows are projected to grow at a rate of 6.1 percent per year forever. The project requires an initial investment of $1,410,000. a. If Yurdone requires a return of 15 percent on such undertakings,...
The Yurdone Corporation wants to set up a private cemetery business. According to the CFO, Barry M. Deep, business is “looking up.” As a result, the cemetery project will provide a net cash inflow of $126,000 for the firm during the first year, and the cash flows are projected to grow at a rate of 5.9 percent per year forever. The project requires an initial investment of $1,490,000. a. If the company requires a return of 15 percent on such...
The Yurdone Corp. wants to set up a private cemetery business. According to the CFO, Barry M. Deep, business is looking up. As a result, the cemetery project will provide a net cash inflow of $115,000 for the firm during the first year, and the cash flows are projected to grow at a rate of 7 percent per year, forever. The project requires an initial investment of $1,300,000. a-1. If Yurdone requires a 12 percent return on such undertakings, should...
The Yurdone Corporation wants to set up a private cemetery business. According to the CFO, Barry M. Deep, business is "looking up". As a result, the cemetery project will provide a net cash inflow of $87,900 for the firm during the first year, and the cash flows are projected to grow at a rate of 5 percent per year forever. The project requires an initial investment of $1,400,000. a-1. What is the NPV for the project if the required return...
The yurdone corporation wants to set up a private cemetery business. According to the CFO, Barry M. Deep, business is "looking up." As a result, the cemetery project will provide a net cash inflow of $127,000 for the firm during the first year, and the cash flows are projected to grow at a rate of 4 percent per year forever. The project requires an initial investment of $1,700,000. a.)If Yurdone requires an 11 percent return on such undertakings, should the...
he Yurdone Corporation wants to set up a private cemetery business. According to the CFO, Barry M. Deep, business is "looking up." As a result, the cemetery project will provide a net cash inflow of $107,000 for the firm during the first year, and the cash flows are projected to grow at a rate of 3 percent per year forever. The project requires an initial investment of $1,600,000. a-1 What is the NPV for the project if the company's...
The Yurdone Corporation wants to set up a private cemetery business. According to the CFO, Barry M. Deep, business is “looking up.” As a result, the cemetery project will provide a net cash inflow of $114,000 for the firm during the first year, and the cash flows are projected to grow at a rate of 5.7 percent per year forever. The project requires an initial investment of $1,370,000.The company is somewhat unsure about the assumption of a growth rate of...
Tesla Corporation wants to build a new electric car model. The CEO, Elon Musk estimates that a net cash inflow of $205,000 for the firm during the first year, and the cash flows are projected to grow at a rate of 5.2 percent per year forever. The project requires an initial investment of $1,800,000. a) Assume that the firm requires a return of 13 percent on such undertakings, should the project be accepted? b) At what constant growth rate would...
Barium Inc. wants to set up a private cemetery business. The project will have sales of $500,000 and operating expenses of $300,000 in its first year. Sales are expected to grow at 4% per year for 10 years, while operating expenses are expected to grow at 3.5% per year for the same time period. This project would require an initial investment in Land of $1,000,000 and an initial investment in Equipment of $200,000. The Land is not depreciable, and the...
A project has the following cash flows: 0 $70,000 48,000 -30,000 a. What is the IRR for this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the NPV of this project if the required return is 5 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What...