Solution: | |||||||
Given: | |||||||
WACC = 10.00% | |||||||
Year | Cash Inflow | Discounting Factor @ 10% | Working | Discounted Cash Flow | Cummalative cash flow | Working | |
(A) | (B) | (C =A*B) | |||||
1 | $525 | 0.909090909 | (1/1.10^1) | $477.27 | $477.27 | $477.27 | |
2 | $485 | 0.826446281 | (1/1.10^2) | $400.83 | $878.10 | (400.83+$477.27) | |
3 | $445 | 0.751314801 | (1/1.10^3) | $334.34 | $1,212.43 | ($878.10+$334.34) | |
4 | $405 | 0.683013455 | (1/1.10^4) | $276.62 | $1,489.05 | ($1212.43+$276.62) | |
Total | $1,489.05 | ||||||
Discounted Pay back period is that period where Cash Inflow = Cash Outflow | |||||||
Cash Outflow = $750 | |||||||
Year | Cash Inflow | ||||||
1 | $477.27 | ||||||
In Year 2 | $272.73 | ($750-$477.27) | |||||
In Year 1 Cash Inflow of $477.27 is recovered , balance Cash Inflow of $272.73 ($750-$477.27) is recovered in year 2 from cash inflow of $400.83 | |||||||
So Discounted pay back period is 1 Year and 0.68 Years ($272.73/$400.83) | |||||||
Discounted pay back period = 1.68 Years | |||||||
masulis i 1 pts Question 18 Masulis Inc. is considering a project that has the following...
Masulis Inc. is considering a project that has the following cash flow and WACC data. What is the project's discounted payback? WACC: Year Cash flows 10.00% 0 1 $925 $525 2 4 3 $445 $485 $405 a. 2.25 years b. 1.86 years c. 2.14 years d. 2.40 years e. 1.95 years
Masulis Inc. is considering a project that has the following cash flow and WACC data. What is the project's discounted payback? WACC: Year Cash flows 10.00% 0 3 4 $925 $525 $485 $445 $405 Oa. 2.14 years b. 1.86 years c. 1.95 years d. 2.25 years e. 2.40 years
Dobson Enterprises is considering a project that is expected to cost $925 today and produce cash flows of $525 (year one), $485 (year two), $445 (year three), and $405 (year four). What is the project's discounted payback if the WACC is 10%? A) 2.40 years B) 2.14 years C) 2.25 years D) 1.95 years E) 1.86 years
Jackson Company is considering a project that has the following cash flows. What are the project's payback, discounted payback, NPV, IRR, and MIRR? The weighted Average Cost of capital of Jackson Company is 10 percent. Explain, in writing, if the project is accepted and why? Year Cash Flows ($) 0 -950 1 525 2 485 3 445 4 405
Please show formulas. Jackson Company is considering a project that has the following cash flows. What are the project's payback, discounted payback, NPV, IRR, and MIRR? The weighted Average Cost of capital of Jackson Company is 10 percent. Explain, in writing, if the project is accepted and why? 0 -950 1 525 2 485 3 445 4 405
Nichols Inc. is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's IRR can be less than the cost of capital or negative, in both cases it will be rejected. Year 0 1 2 3 4 5 Cash flows −$1,250 $325 $325 $325 $325 $325 a. 10.92% b. 9.43% c. 11.47% d. 10.40% e. 9.91% Westwood Painting Co. is considering a project that has the following cash flow and cost...
Malholtra Inc. is considering a project that has the following cash flow and WACC data. What is the project's MIRR? WACC: 10.00% Year 0 1 2 3 4 Cash flows $750 $300 $320 $340 $360
Question 8 4 pts Jabib Global Inc. is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's projected NPV can be negative, in which case it will be rejected. WACC: 14.00% Year 0 1 Cash flows $1,200 2 $400 3 $425 4 $450 $475 $45.84 $62.88 $41.25 $50.93
Question 10 1 pts Tim Atter 46M Fernando Designs is considering a project that has the following cash flow and WACC data. What is the project's discounted payback? WACC: 10% 3 Year Cash Flow 0 $900 1 $400 2 $430 $460 18 years 209 es 275 years 22 Hetov O BI $ lopo 00 pa dete $ $ 8 ( 3 4 5 6 7 8 9 O backspace EM lock والی E R T Y U O Р [...
1. Frye Foods is considering a project that has the following cash flow data. What is the project's IRR? Enter your answer rounded to two decimal places. Do not enter % in the answer box. For example, if your answer is 0.12345 or 12.345% then enter as 12.35 in the answer box. Year: 0 1 2 3 4 5 Cash flows: -$1,150 $325 $325 $325 $325 $325 2.Van Auken Inc. is considering a project that has the following cash flows:...