The Oklahoma Pipeline Company projects the following pattern of inflows from an investment. The inflows are spread over time to reflect delayed benefits. Each year is independent of the others. Year 1 Year 5 Year 10 Cash Inflow Probability Cash Inflow Probability Cash Inflow Probability $ 60 0.40 $ 50 0.30 $ 40 0.40 80 0.20 80 0.40 80 0.20 100 0.40 110 0.30 120 0.40 The expected value for all three years is $80. Compute the standard deviation for each of the three years. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
The Oklahoma Pipeline Company projects the following pattern of inflows from an investment. The inflows are...
Check my work The Oklahoma Pipeline Company projects the following pattern of inflows from an investment. The inflows are spread over time to reflect delayed benefits. Each year is independent of the others. Year 1 Cash Inflow Probability $ 65 0.20 0.60 0.20 Year 5 Cash Inflow Probability $ 50 0.25 0.50 110 0.25 Year 10 cash Inflow Probability $ 40 0.30 0.40 129 9.30 30 80 95 The expected value for all three years is $80. Compute the standard...
IRR, investment life, and cash inflows Oak Enterprises accepts projects earning more than the firm's 11% cost of capital. Oak is currently considering a 10-year project that provides annual cash inflows of $50,000 and requires an initial investment of $304,600. (Note: All amounts are after taxes.) a. Determine the IRR of this project. Is it acceptable? b. Assuming that the cash inflows continue to be $50,000 per year, how many additional years would the flows have to continue to make...
Use the following information:
Annual cash inflows that will arise from two competing
investment projects are given below:
Investment
Year
A
B
1
$4,000
$16,000
2
$8,000
$12,000
3
$12,000
$8,000
4
$16,000
$4,000
Total
$40,000
$40,000
Each investment project will require the same investment outlay.
The discount rate is 16%
Compute the present value of the cash inflows for Investment A.
(Round to nearest dollar)
Compute the present value of the cash inflows for Investment B.
(Round to nearest...
Annual cash inflows that will arise from two competing investment projects are given below: Year Investment A Investment B 1 $ 7,000 $10,000 2 8,000 9,000 3 9,000 8,000 4 10,000 7,000 Total $34,000 $34,000 The discount rate is 5%. Use Excel or a financial calculator to solve the homework. Round answers to the nearest dollar. Required: Compute the present value of the cash inflows for each investment. Each investment opportunity will require the same initial investment.
The expected value for all three years is $70.Compute the standard deviation for each of the three years. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Annual cash inflows that will arise from two competing investment projects are given below: Year Investment A $ 9,000 10,000 11,000 12,000 $ 42,000 Investment B $ 12,000 11,000 10,000 9,000 $ 42,000 The discount rate is 7%. Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using tables. Required: Compute the present value of the cash inflows for each investment. Each investment opportunity will require the same initial investment. (Round discount factor(s) to...
Annual cash inflows that will arise from two competing investment projects are given below: Year Investment A Investment B 1 $ 3,000 $6,000 2 4,000 5,000 3 5,000 4,000 4 6,000 3,000 Total $18,000 $18,000 The discount rate is 10%. Use Excel or a financial calculator to solve the homework. Round answers to the nearest dollar. Required: Compute the present value of the cash inflows for each investment. Each investment opportunity will require the same initial...
Annual cash inflows that will arise from two competing investment projects are given below: Year Investment B 6,000 7,000 8,000 9,000 8,000 7,000 4 Total 30,000 $30,000 The discount rate is 11% Click here to view Exhibit 88-1 and Exhibit 88-2, to determine the appropriate discount factor(s) using tables. Required Compute the present value of the cash inflows for each investment. Each investment opportunity will require the same initial investment. (Round discount factor(s) to 3 decimal places.) Amount of Cash...
Annual cash inflows that will arise from two competing investment projects are given below. Year 1 Investment A $ 3,000 4,00 5, eee 6,000 $ 18,000 Investment B $ 6, eee 5,000 4.ee 3. eee $18, eee The discount rate is 8%. Click here to view Exhibit 13B-1 and Exhibit 13B-2. to determine the appropriate discount factor(s) using tables. Required: Compute the present value of the cash inflows for each investment. Each investment opportunity will require the same initial Investment....
(NPV, PV, and IRR calculations) You are considering two independent projects, project A and project B. The initial cash outlay associated with project Als $55,000 and the initial cash outlay associated with project is $75,000. The required role of return on both projects is 12 percent. The expected arvual free cash inflows from each project are in the popup window. Calculate the NPV, Pt, and IRR for each project and indicate if the project should be accepted. a. What is...