please use financial calculator 6. What is the NPV of the following series of cash flows...
Solve the following questions using a financial calculator. Submit your answers in Excel. Show calculator inputs (ie. N, PV, etc.) to get partial credit. 1. How much would you pay for the right to receive $12,000 at the end of 15 years if you can earn a 15% return on a real estate investment with similar risk? 2. What constant amount invested at the end of each year at a 10% annual interest rate will be worth $20,000 at the...
Please use excel, need help with functions because I am only used to using a financial calculator, thanks! The following cash-flows have two IRRs. Draw a graph of the NPV of these cash flows as a function of the discount rate. Then use the IRR function to identify the two IRRs. Would you invest in this project if the opportunity cost were 20%? Year Cash Flow 0 -500 1 600 2 300 3 300 4 200 5 -1,000
What is the NPV of a project with the following cash flows and a discount rate of 12% Initial Investment (1,000,000) Cash Flow Year 1 400,000 Year 2 300,000 Year 3 400,000 Year 4 200,000
s. Understanding the NPV profile Aa Aa If an independent project with conventional, or normal, cash flows is being analyzed, the net present value (NPV) and internal rate of return (IRR) methods agree. Projects W and X are mutually exclusive projects. Their cash flows and NPV profiles are shown as follows. NPV (Dollars) Year Project W Project x 800 0 - $1,500 -$1,000 $200 $350 600 Project X 2 $350 $500 $400 $600 400 4 $600 $750 Project W 200...
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
What is the Net Present Value (NPV) for the below series of project cash flows, assuming a discount rate of 7%? Year Cash Flow CY ($450,000) CY+1 $79,000 CY+2 $125,000 CY+3 $140,000 CY+4 $135,000 CY+5 $45,000 a. $102,991 b.(17,631) c. $22,991 d.($16,478) QUESTION 2 All other things being equal, is the project with the NPV of cash flows in Problem 1 above attractive? a. Yes b. No
Compute the sum of the two IRRs 4. The following cash-flow pattern has two IRRs. Use Excel to draw a graph of the NPV of these cash flows as a function of the discount rate. Then use the IRR function to identify the two IRRs. Would you invest in this project if the opportunity cost were 20%? 4 5 6 7 8 9 10 A Year 0 1 2 3 4 5 B Cash flow -500 600 300 300 200...
What is the Net Present Value (NPV) for the below series of project cash flows, assuming a discount rate of 7%? Year Cash Flow CY ($450,000) CY+1 $79,000 CY+2 $125,000 CY+3 $140,000 CY+4 $135,000 CY+5 $45,000 a. $102,991 b. ($17,631) c. $22,991 d.($16,478)
Please use formulas for Series (repeated) Cash Flows and Arithmetic Gradient Series Cash Flows, and draw cash flow diagrams as applicable. Your company has bought a new machine which is covered by a manufacturer's warranty for the first year. The expected future repair costs are shown below. For simplicity, assume that costs are paid at the end of the year in which they are incurred. Year 1 2 3 4 5 Repair cost 0 500 1000 1500 2000 The seller...
What is the NPV of the following cash flows at a discount rate of zero percent? What if the discount rate is 10 percent? If it is 20 percent? If it is 30 percent? (13,900) Year 0 Year 1 6,400 $ Year 2 8,700 Year 3 5,900 Discount rate 0% 10% Discount rate Discount rate 20% 30% Discount rate Complete the following analysis. Do not hard code values in your calculations. You must use the built-in Excel function to answer...