Present value = Future value / (1 + R)T
Present Value of cash Flows =
[($530 / (1.08)1] + [($660 / (1.08)2] + [($700 / (1.08)3] + [($780 / (1.08)4] + [($280 / (1.08)5]
Present Value of cash Flows = $2,376.154
Initial cash Flow = ($1,900)
Net Present Value = $2,376.154 - $1,900
Net Present Value = $476.154
Net Present Value = $476.15.
The Project should be Accepted because the Net Present Value is positive.
Compute the NPV for Project M if the appropriate cost of capital is 8 percent. (Negative...
Compute the NPV for Project M if the appropriate cost of capital is 8 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.) Project M Time: 0 1 2 3 4 5 Cash flow: −$1,900 $530 $660 $700 $780 $280 NPV? Should the project be accepted or rejected? accepted rejected
Compute the NPV statistic for Project U if the appropriate cost of capital is 10 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.) Project U Time: . Cash flow: 1. $710 2. $2,380 3. $700 4. $660 5 $280 $2,400 NPV Should the project be accepted or rejected? Orejected accepted
Compute the NPV for Project K if the appropriate cost of capital is 5 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.) Project K Time: Cash flow: 0 1 $10,200 $5,100 2 $6,100 3 $6,100 4 $5,100 5 $10,200 NPV Should the project be accepted or rejected? accepted O rejected
Compute the NPV statistic for Project U if the appropriate cost of capital is 11 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.) Project U Time: 0 1 2 3 4 5 Cash flow: –$2,200 $630 $2,180 –$660 $580 –$240 NPV= Should the project be accepted or rejected?
Compute the NPV for Project M if the appropriate cost of capital is 8 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.) Project M Time: 0 1 2 3 4 5 Cash flow: –$2,900 $650 $780 $820 $900 $400
Compute the NPV statistic for Project Y if the appropriate cost of capital is 11 percent. (Ne minus sign. Do not round intermediate calculations and round your final answer to 20 Project Y Time: Cash flow: $8,400 $3,710 $4,540 $1,880 $660 NPV Should the project be accepted or rejected? rejected • accepted
Compute the NPV statistic for Project U if the appropriate cost of capital is 10 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.) Project U Time: Cash flow: -$1,300 $470 $1,780 $580 $420 -$160 NPV Should the project be accepted or rejected? rejected accepted
Compute the NPV statistic for Project Y if the appropriate cost of capital is 11 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your final answer to 2 decimal places.) Project Y Time: 0 1 2 3 4 Cash flow –$8,200 $3,670 $4,500 $1,840 $620 NPV $ Should the project be accepted or rejected? Rejected Accepted
Compute the NPV statistic for Project Y if the appropriate cost of capital is 11 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.) Project Y Time: Cash flow: -68,300 $3,690 64,520 61,960 6640 NPV Should the project be accepted or rejected? rejected Daccepted
Compute the NPV statistic for Project Y if the appropriate cost of capital is 12 percent. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.) Project Y Time: Cash flow: 0 $8,000 1 $3,350 2 $4,180 3 $1,520 4 $300 NPV Should the project be accepted or rejected? O accepted O rejected