ZuoTi.Pro
Question

3. (8 marks) A proposed project has the following cash flows and a required return of 12%. Year Cash Flow -450 250 -75 400 a)

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

iz 12 ) Page No. Date: - Cash flow - чь 250 -75 400 Discounted cash flow .. -uso 223.21 - 59.78 284.7 3 a). Payback period 25

0 0
Add a comment
Know the answer?
Add Answer to:
3. (8 marks) A proposed project has the following cash flows and a required return of...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • (b) A company is evaluating a project for which the costs and expected cash flows are...

    (b) A company is evaluating a project for which the costs and expected cash flows are as follows: Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 -$2,200,000 $400,000 $535,000 $650,000 $700,000 $880,000 The company uses a discount rate of 10% for all projects. Given the information: i. Determine NPV of the project. (2 marks) Determine payback period of the project. (1.5 marks) Determine discounted payback period of the project. (2 marks) iv. Will the payback period...

  • you are considering a project with an initial cash outlay of $74,000 and expected cash flows...

    you are considering a project with an initial cash outlay of $74,000 and expected cash flows of $23,680 at the end of each year for six years. the discount rate for the project is 9.7 percent. a. what are the project's payback discounted payback periods? - if the discount rate for this project is 9.7 percent, the discounted payback period of the project is how many years? b. what is the projects NPV? c. what is the project's PI? d....

  • Q1) A proposed overseas expansion has the following cash flows:- Year Cash Flows Net income 12000...

    Q1) A proposed overseas expansion has the following cash flows:- Year Cash Flows Net income 12000 Cost of asset Accumulated 200 0 Depreciation | | 2000 | Required Rate of Return 4000 Required Payback 4 years 50 10% 60 70 200 6000 Cost of Capital 8000 12% The required rate of return of 10%. The required payback is 4 years. Assume we require an average accounting return of 25% Required: 1. Calculate the payback period 2. Calculate the discounted payback...

  • Assume the required rate of return is 12 percent Year                Cash Flows 0                &

    Assume the required rate of return is 12 percent Year                Cash Flows 0                      - $144,000 1                      $33,000 2                      $46,000 3                      $58,000 4                      $72,000 -What is the NPV of the above cash flows - What is the IRR -What is the Profitability Index -What is the payback period of the project -What is the discounted payback period

  • Given a project with the following cash flows and a cost of capital of 9%. Calculate...

    Given a project with the following cash flows and a cost of capital of 9%. Calculate the NPV, IRR, MIRR, and PI. For each of the four calculations, give a brief interpretation of what it measures and how it should be used to evaluate a project. Should the project be accepted? Why or why not? Time Period        Cash Flow         0                         -$200,000         1                         $50,000         2                         $70,000         3                         -$80,000         4                         $75,000         5                         $100,000         6                         $120,000...

  • Choo Choo Inc. is a manufacturer of model trains. The company is considering the purchase of...

    Choo Choo Inc. is a manufacturer of model trains. The company is considering the purchase of an industrial 3D printer, which will allow the firm to produce custom-made model trains for its high-end customers. The printer will cost $2,500,000, and it is expected to produce net cash flows of $600,000 per year for the next six years.  Liquidation of the equipment will net the firm $350,000 in cash at the end of six years. The firm requires a 15% rate of...

  • (Discounted payback period) Gio's Restaurants is considering a project with the following expected cash flows: Year...

    (Discounted payback period) Gio's Restaurants is considering a project with the following expected cash flows: Year Project Cash Flow (millions) $(210) AWNO If the project's appropriate discount rate is 11 percent, what is the project's discounted payback period? The project's discounted payback period is years. (Round to two decimal places.) (Mutually exclusive projects and NPV) You have been assigned the task of evaluating two mutually exclusive projects with the following projected cash flows: Project A Project B Year Cash Flow...

  • Consider the following table that shows expected annual cash flows from a proposed investment. Year   Cash...

    Consider the following table that shows expected annual cash flows from a proposed investment. Year   Cash Flow 0   –$70 1 $20 2 $30 3 $30 4           $30 If the annual required return is 15%, what is the payback period of the project (rounded to the first decimal)? If the firm’s cutoff discounted payback period is 3 years, should it accept the project?

  •  You are considering a project with an initial cash outlay of ​$75,000 and expected cash flows...

     You are considering a project with an initial cash outlay of ​$75,000 and expected cash flows of ​$21,750 at the end of each year for six years. The discount rate for this project is 9.7 percent. a.  What are the​ project's payback and discounted payback​ periods? b.  What is the​ project's NPV? c.  What is the​ project's PI? d.  What is the​ project's IRR?

  • Use the following information to answer questions 16 through 20. You are analyzing a proposed project...

    Use the following information to answer questions 16 through 20. You are analyzing a proposed project and have compiled the following information Year Cash flow 0 $145,000 1 $33,400 $ 70,500 $ 82,100 Required payback period 3 years Required return 9.50 percent 16. What is the net present value of the proposed project? a. S6,239.12 b. 58.221.29 c. S6,831.84 d. 58,376.91 17. Should the project be accepted based on the internal rate of return (IRRY? Why or why not? a....

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT