Ans $ 378,496
Year | Project Cash Flows (i) | DF@ 8% | DF@ 8% (ii) | PV of Project A ( (i) * (ii) ) |
0 | -1037500 | 1 | 1 | (10,37,500.00) |
1 | 325000 | 1/((1+8%)^1) | 0.926 | 3,00,925.93 |
2 | 475000 | 1/((1+8%)^2) | 0.857 | 4,07,235.94 |
3 | 475000 | 1/((1+8%)^3) | 0.794 | 3,77,070.31 |
4 | 450000 | 1/((1+8%)^4) | 0.735 | 3,30,763.43 |
NPV | 3,78,496 | |||
TED What information does the payback period provide? talog Suppose Extensive Enterprises's CFO is evaluating a...
Please help!Thank you! What information does the payback period provide? Suppose Extensive Enterprises's CFO is evaluating a project with the following cash inflows. She does not know the project's initial cost; however, she does know that the project's regular payback period is 2.5 years. If the project's weighted average cost of capital (WACC) is 7%, what is its NPV? Year Year 1 Year 2 Year 3 Year 4 Cash Flow $300,000 $400,000 $450,000 $500,000 O $476,208 O $362,825 $544,237 O...
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Suppose Acme Manufacturing Corporation's CFO is evaluating a project with the following cash inflows. She does not know the project's initial cost; however, she does know that the project's regular payback period is 2.5 years. Year Year 1 Year 2 Year 3 Year 4 Cash Flow $325,000 $500,000 $450,000 $500,000 If the project's weighted average cost of capital (WACC) is 8%, what is its NPV? $444,769 $363,902 $404,335 Bound $343,685 Which of the following statements indicate a disadvantage of using...
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