Initial investment = $25,000
Annual cash flow = $7,000
Life of project = 25 years
Cost of capital = 12%
NPV = -$25,000 + $7,000 * PVA of $1 (12%, 25)
NPV = -$25,000 + $7,000 * (1 - (1/1.12)^25) / 0.12
NPV = -$25,000 + $7,000 * 7.843139
NPV = $29,901.97
The NPV of the project is $29,901.97
You should accept this project as its NPV is positive.
na NPV Calcuiate the net present value (NPV) for a 25-year project with an initial investment...
NPV Calculate the net present value (NPV) for a 20-year project with an initial investment of $10,000 and a cash inflow of $2,000 per year. Assume that the firm has an opportunity cost of 16%. Comment on the acceptability of the project. The project's net present value is $ (Round to the nearest cent.)
NPV Calculate the net present value (NPV) for a 30-year project with an initial investment of $25,000 and a cash inflow of $4,000 per year. Assume that the firm has an opportunity cost of 18% Comment on the acceptability of the project. The project's net present value is S□ (Round to the nearest cent ) Enter your answer in the answer box and then click Check Answer part remainin Clear All javascriptdoExercise(3);
Calculate the net present value (NPV) for a 20-year project with an initial investment of $10 comma 000 and a cash inflow of $2 comma 000 per year. Assume that the firm has an opportunity cost of 14%. Comment on the acceptability of the project The project's net present value is ____
Calculate the net present value for a 15-year project with an initial investment of $ 0 and a cash inflow of $2,000 per year. Assume that the firm has an opportunity cost of 13%. Comment on the acceptability of the project. The project's net present value is $____ .
1. Calculate the net present value (NPV) for a 10-year project with an initial investment of $25,000 and a cash inflow of $7,000 per year. Assume that the firm has an opportunity cost of 17%. The project's net present value is $_____.
Net present value Using a cost of capital of 14%, calculate the net present value for the project shown in the following table and indicate whether it is acceptable, E: The net present value (NPV) of the project is $ . (Round to the nearest cent.) Data Table - X Is the project acceptable? (Select the best answer below.) O O No Yes in order to copy the contents of the data table below (Click on the icon here into...
Click here to read the eBook: Net Present Value (NPV) NPV Project L costs $50,000, its expected cash inflows are $11,000 per year for 7 years, and its WACC is 10%. What is the project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations.
1. Problem 11.01 Click here to read the eBook: Net Present Value (NPV) NPV Project L costs $50,000, its expected cash inflows are $12,000 per year for 9 years, and its WACC is 11%. What is the project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations.
1. Net present value (NPV) Evaluating cash flows with the NPV method The net present value (NPV) rule is considered one of the most common and preferred criteria that generally lead to good investment decisions. Consider this case: Suppose Blue Hamster Manufacturing Inc. is evaluating a proposed capital budgeting project (project Beta) that will require an initial investment of $2,750,000. The project is expected to generate the following net cash flows: Year Cash Flow Year 1 $375,000 Year 2 $425,000...
1. Net present value (NPV) Evaluating cash flows with the NPV method The net present value (NPV) rule is considered one of the most common and preferred criteria that generally lead to good investment decisions. Consider this case: Suppose Blue Hamster Manufacturing Inc. is evaluating a proposed capital budgeting project (project Beta) that will require an initial investment of $2,500,000. The project is expected to generate the following net cash flows: Year Cash Flow Year 1 $375,000 Year 2 $425,000...