*Please rate thumbs up
A project has the following cash flows. Cash flows are paid at year-end. Year CF 2017...
A project has the following cash flows. Cash flows are paid at year-end. Year CF 2017 -$200 2018 +$80 2019 +$80 2020 +$80 2021 +$80 What is the payback period if the opportunity cost of capital (OCC) is 11%? 3,5,4, or 2 years?
The following are the cash flows of two projects: Year Project A $ (200) 80 80 80 Project B $ (200) 100 100 100 AWN If the opportunity cost of capital is 11%, what is the profitability index for each project? (Do not round intermediate calculations. Round your answers to 4 decimal places.) Answer is complete but not entirely correct. Project Profitability Index 1.2410 % 1.2218 B
by hand #1 Questions a) to c) refer to two projects with the following cash flows: Year Project B Project A - $200 80 -$200 100 80 100 80 100 Projects A and B are mutually exclusive. a) Calculate the Payback, Discounted Payback, NPV, IRR, and Profitability Index for Projects A and B using an opportunity cost of capital of 10% (where applicable). Which of these projects is worth pursuing? Explain. b) Calculate the Payback, Discounted Payback, NPV, IRR, and...
The following are the cash flows of two projects: Year Project A Project B 0 −$ 300 −$ 300 1 180 200 2 180 200 3 180 200 4 180 If the opportunity cost of capital is 12%, what is the profitability index for each project?
1. You have the chance to participate in a project that produces the following cash flows: Cash Flows ($) C0 C1 C2 4,600 4,400 –10,800 a. The internal rate of return is 12.69%. If the opportunity cost of capital is 12%, what is the NPV of the project? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) NPV $ __________. 2. Consider the following projects: Cash Flows...
Refer to two projects with the following cash flows: Year Project A Project B 0 -$120 -$120 1 50 60 2 50 60 3 50 60 4 50 If the opportunity cost of capital is 13%, what is the profitability index for each project? (Round to 4 decimal places.) Does the profitability index rank the projects A and B correctly?
The following are the cash flows of two projects: Year Project A Project B 0 −$ 220 −$ 220 1 100 120 2 100 120 3 100 120 4 100 If the opportunity cost of capital is 10%, what is the profitability index for each project? (Do not round intermediate calculations. Round your answers to 4 decimal places.)
Given the following end of year cash flows (CF), what is the net-present value (NPV) of this investment opportunity. Assume that the project’s cost of capital is 10%. Round your final answer to two decimals. Timeline 0 1 2 3 4 CF -900 400 400 400 800
Here are the expected cash flows for three projects: Project Year: 4 0 - 5,100 - 1,100 - 5,100 Cash Flows (dollars) 2 3 + 1,025 + 1,025 + 3,050 0 + 1,100 + 2,050 + 1,025 + 1,025 + 3,050 + 3,050 + 5,050 a. What is the payback period on each of the projects? b. If you use the payback rule with a cutoff period of 2 years, which projects will you accept? c. If you use a...
A firm is planning a new project that is projected to yield cash flows of -$515,000 in Year 1, $586,000 per year in Years 2 through 3, and $678,000 in Years 4 through 6, and $728,000 in Years 7 through 10. This investment will cost the company $2,780,000 today (initial outlay). We assume that the firm's cost of capital is 9.65%. (1) Draw a time line to show the cash flows of the project. (2) Compute payback period, net present...