Homework Answers
| Year | Cash flow | Present value calculation | Present value | Cumulative Present value |
| 1 | -1000 | -1,000.00 | ||
| 2 | 450 | =450/(1+10%)^1 | 409.09 | -590.91 |
| 3 | 450 | =450/(1+10%)^2 | 371.90 | -219.01 |
| 4 | 450 | =450/(1+10%)^3 | 338.09 | 119.08 |
| Payback period = 2+(219.01/338.09) | ||||
| Payback period = 2.64 Years |
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Use the discount payback method to calculate the Payback period WACC: 10%...
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Please show your steps! Question 1 a) What is the NPV, IRR, and payback period of a project with the following cash flows if WACC is 20%? Time: 0 -$350,000 1 $100,000 2 $100,000 3 $100,000 $100,000 A $50,000 $50,000 NPV= IRR= Payback period b) Should you accept or reject the project according to NPV and IRR?!
Please show your steps! Question 1 a) What is the NPV, IRR, and payback period of a project with the following cash...
Please show your steps! Question 1 a) What is the NPV, IRR, and payback period of a project with the following cash flows if WACC is 20%? Time: 0 -$350,000 1 $100,000 2 $100,000 3 $100,000 5 $50,000 $50,000 NPV= IRRE Payback period= b) Should you accept or reject the project according to NPV and IRR?
Calculate payback periods. Please show calculations so I can duplicate it in excel. 7 Your division is considering two projects. Its wACC is 10%, and the projects, after-tax cash flows (in millio...
Calculate payback periods. Please show calculations so I can
duplicate it in excel.
7 Your division is considering two projects. Its wACC is 10%, and the projects, after-tax cash flows (in millions 8 of dollars) would be as follows: Expected Cash Flows Project A Project B 10 Time (S30) S5 s10 S15 S20 (S30) S20 S10 S8 S6 12 13 14 15 16 17 18 a. Calculate the projects' NPVs, IRRs, MIRRs, regular paybacks, and discounted payback Use Excel's NPV...
Calculate the Payback Period, IRR, NPV, and PI if cash flows are as follows: -$2M; $600K;...
Calculate the Payback Period, IRR, NPV, and PI if cash flows are as follows: -$2M; $600K; $850K; $900K: and $700K. (WACC is 10%)
5. The NPV and payback period Aa Aa What information does the payback period provide? Suppose...
5. The NPV and payback period Aa Aa What information does the payback period provide? Suppose you are evaluating a project with the expected future cash inflows shown in the following table. Your boss has asked you to calculate the project's net present value (NPV). You don't know the project's initial cost, but you do know the project's regular, or conventional, payback period is 2.50 years. If the project's weighted average cost of capital (WACC) is 790, the project's NPV...
please help!! 10. The payback period The payback method helps firms establish and identify a maximum...
please help!!
10. The payback period The payback method helps firms establish and identify a maximum acceptable payback period that helps in capital budgeting decisions. There are two versions of the payback method: the conventional payback method and the discounted payback method. Consider the following case: Cute Camel Woodcraft Company is a small firm, and several of its managers are worried about how soon the firm will be able to recover its initial investment from Project Sigma's expected future cash...
Calculate the payback period, ARR, IRR and NPV (at 12%) for two proposed four-year projects, B1...
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7.The NPV and payback period What Information does the payback period provide? Suppose you are evaluating a projec...
7.The NPV and payback period What Information does the payback period provide? Suppose you are evaluating a project with the expected future cash inflows shown in the following table. Your boss has asked you to calculate the project's net present value (NPV). You don't know the project's initial cost, but you do know the project's regular, or conventional, payback period 2.50 years. Year Cash Flow $275,000 Year 1 Year 2 $400,000 Year 3 $475,000 Year 4 $475,000 f the project's...
5. The NPV and payback period What Information does the payback period provide? Suppose you are...
5. The NPV and payback period What Information does the payback period provide? Suppose you are evaluating a project with the expected future cash inflows shown in the following table. Your boss has asked you to calculate the project's not present value (NPV). You don't know the project's initial cost, but you do know the project's regular, or conventional, payback period is 2.50 years Year Cash Flow Year 1 $375,000 Year 1425.000 Year 3 Year 4 $450,000 $500,000 If the...
The NPV and payback period What information does the payback period provide? Suppose you are evaluating...
The NPV and payback period What information does the payback period provide? Suppose you are evaluating a project with the expected future cash inflows shown in the following table. Your boss has asked you to calculate the project’s net present value (NPV). You don’t know the project’s initial cost, but you do know the project’s regular, or conventional, payback period is 2.50 years. Year Cash Flow Year 1 $325,000 Year 2 $450,000 Year 3 $450,000 Year 4 $475,000 If the...
Please show your steps! Question 1 a) What is the NPV, IRR, and payback period of a project with the following cash flows if WACC is 20%? Time: 0 -$350,000 1 $100,000 2 $100,000 3 $100,000 $100,000 A $50,000 $50,000 NPV= IRR= Payback period b) Should you accept or reject the project according to NPV and IRR?!
Please show your steps! Question 1 a) What is the NPV, IRR, and payback period of a project with the following cash flows if WACC is 20%? Time: 0 -$350,000 1 $100,000 2 $100,000 3 $100,000 5 $50,000 $50,000 NPV= IRRE Payback period= b) Should you accept or reject the project according to NPV and IRR?
Calculate payback periods. Please show calculations so I can
duplicate it in excel.
7 Your division is considering two projects. Its wACC is 10%, and the projects, after-tax cash flows (in millions 8 of dollars) would be as follows: Expected Cash Flows Project A Project B 10 Time (S30) S5 s10 S15 S20 (S30) S20 S10 S8 S6 12 13 14 15 16 17 18 a. Calculate the projects' NPVs, IRRs, MIRRs, regular paybacks, and discounted payback Use Excel's NPV...
Calculate the Payback Period, IRR, NPV, and PI if cash flows are as follows: -$2M; $600K; $850K; $900K: and $700K. (WACC is 10%)
5. The NPV and payback period Aa Aa What information does the payback period provide? Suppose you are evaluating a project with the expected future cash inflows shown in the following table. Your boss has asked you to calculate the project's net present value (NPV). You don't know the project's initial cost, but you do know the project's regular, or conventional, payback period is 2.50 years. If the project's weighted average cost of capital (WACC) is 790, the project's NPV...
please help!!
10. The payback period The payback method helps firms establish and identify a maximum acceptable payback period that helps in capital budgeting decisions. There are two versions of the payback method: the conventional payback method and the discounted payback method. Consider the following case: Cute Camel Woodcraft Company is a small firm, and several of its managers are worried about how soon the firm will be able to recover its initial investment from Project Sigma's expected future cash...
7.The NPV and payback period What Information does the payback period provide? Suppose you are evaluating a project with the expected future cash inflows shown in the following table. Your boss has asked you to calculate the project's net present value (NPV). You don't know the project's initial cost, but you do know the project's regular, or conventional, payback period 2.50 years. Year Cash Flow $275,000 Year 1 Year 2 $400,000 Year 3 $475,000 Year 4 $475,000 f the project's...
5. The NPV and payback period What Information does the payback period provide? Suppose you are evaluating a project with the expected future cash inflows shown in the following table. Your boss has asked you to calculate the project's not present value (NPV). You don't know the project's initial cost, but you do know the project's regular, or conventional, payback period is 2.50 years Year Cash Flow Year 1 $375,000 Year 1425.000 Year 3 Year 4 $450,000 $500,000 If the...
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