A project that provides annual cash flows of $18,000 for 6 years costs $61,000 today.
A. If the required return is 11 percent, what is the NPV for this project?
B. Determine the IRR for this project.
Show work please.
a.Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)
=18000/1.11+18000/1.11^2+18000/1.11^3+18000/1.11^4+18000/1.11^5+18000/1.11^6
=76149.68
NPV=Present value of inflows-Present value of outflows
=76149.68-61000
=$15149.68(Approx)
b.Let irr be x%
At irr,present value of inflows=present value of outflows.
61000=18000/1.0x+18000/1.0x^2+18000/1.0x^3+18000/1.0x^4+18000/1.0x^5+18000/1.0x^6
Hence x=irr=19.24%(Approx).
A project that provides annual cash flows of $18,000 for 6 years costs $61,000 today. A....
A project that provides annual cash flows of $2,800 for 6 years costs $9,800 today. Required: (a) If the required return is 9 percent, what is the NPV for this project? (Click to select)$2,760.57$3,036.63$3,312.69$3,643.96$2,484.51 (b) Determine the IRR for this project. (Click to select)17.97%19.77%21.57%23.72%16.18%
A project that provides annual cash flows of $2,500 for 10 years costs $11,800 today. Required: (a) If the required return is 10 percent, what is the NPV for this project? (b) Determine the IRR for this project.
A project that provides annual cash flows of $10,400 for 10 years costs $58,762 today. a. If the required return is 5 percent, what is the NPV for this project? b. Determine the IRR for this project.
A project that provides annual cash flows of $11,200 for 7 years costs $51,114 today. a. If the required return is 7 percent, what is the NPV for this project? b. Determine the IRR for this project.
A project that provides annual cash flows of $13,000 for 8 years costs $69,354 today. a. If the required return is 15 percent, what is the NPV for this project? b. Determine the IRR for this project.
A project that provides annual cash flows of $12,300 for 7 years costs $59,882 today. a. If the required return is 7 percent, what is the NPV for this project? b. Determine the IRR for this project.
A project that provides annual cash flows of $21,000 for 5 years costs $67,000 today. a. If the required return is 15 percent, what is the NPV for this project? b. Determine the IRR for this project.
A project that provides annual cash flows of $13,900 for 12 years costs $90,244 today. a. If the required return is 8 percent, what is the NPV for this project? b. Determine the IRR for this project.
A project that provides annual cash flows of $11,100 for 8 years costs $49,809 today. a. If the required return is 20 percent, what is the NPV for this project? b. Determine the IRR for this project.
A project that provides annual cash flows of $11,700 for 12 years costs $79,720 today. a. If the required return is 15 percent, what is the NPV for this project? b. Determine the IRR for this project.