40)
Project C Cash Flows (dollars) CO -15,000 10,500 10,500 -25,000 16,500 16,500 Given the above information,...
Consider the following cash flows: Cash Flows ($) CO С1 -7,750 5,500 20,000 a. Calculate the net present value of the above project for discount rates of 0, 50, and 100%. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) NPV 0% NPV @50% NPV @100% b. What is the IRR of the project? (Do not round intermediate calculations. Enter your answer as a percent rounded to the nearest whole number.) IRR
A project that will provde annual cash flows of $2,550 for nine years costs $10,500 today. a. At a required return of 11 percent, what is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. At a required return of 27 percent, what is the NPV of the project? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer...
1. Given the following set of cash flows for a project, calculate the NPV, PI, IRR, MIRR, Payback, Discounted Payback and Accounting Rate of Return. Assume a cost of capital of 10%. Assuming that this is an independent project, should the project be accepted? Why or why not? (20 pts.) Year Cash Flow Net Profit Depreciation 0 -$125,000 1 $22,000 $15,000 $10,000 2 $58,000 $43,000 $25,000 3 -$30,000 $24,000 $21,000 4 $35,000 $28,000 $18,000 5 $28,000 $20,000 $15,000 6 $60,000 ...
Assume a new project requires an initial investment of $6 million dollars, with ensuing cash flows of $1, $3 and $5 million in years 1, 2 and 3. Assuming the company's WACC is 10%, which of the following statements is true? The firm should accept the project, as the IRR is lower than the WACC. The firm should reject the project, as the IRR is higher than the WACC. The firm should accept the project, as the NPV is positive....
If the net cash flows for a project change signs more than once a. The project should never be accepted b. The project may have more than one IRR; the highest IRR should be used to determine whether to accept the project c. The project may have more than one IRR; the NPV method should be used to determine whether to accept the project d. All projects should be ranked according to their payback period to determine which project should...
Your firm is considering two projects with the following cash flows: Cash flows from project B (£000) (500) 200 250 170 25 30 Year Cash flows from project A (£000) 0(500) 167 180 160 100 100 4 1. Calculate the ARR and payback rule 2. If the appropriate discount rate is 12%, rank the two projects 3. Which project is preferred if you rank by IRR? 4. Calculate the discount rate (r) for which the NPVs of both projects are...
Consider the following cash flows Cash Flows (5) -7350 5.100 19 200 a. Car e the net present of the above proxect for discount rates of 0.50 and 100% Do not round intermediate calculations. Round your answers to the rest whole ola NPV NPV 50% 100 b. What is the IRR of the project? Do not found intermediate a c onser your ans IRR
A project requires, as its only cost, an initial investment of
$17,000. It then generates positive future cash flows. The
appropriate discount rate is 22%. This project has an NPV of -$935
(negative NPV). What can you say about this project’s IRR?
A project requires, as its only cost, an initial investment of $17,000. It then generates positive future cash flows. The appropriate discount rate is 22%. This project has an NPV of -$935 (negative NPV). What can you say...
Consider two mutually exclusive projects A and B: Cash Flows (dollars) Project C0 C1 C2 NPV at 11% A −36,500 26,200 26,200 +$8,368 B −56,500 39,500 39,500 +11,145 a. Calculate IRRs for A and B. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) b. Which project does the IRR rule suggest is best? Project A Project B c. Which project is really best?
Consider the following project Cash flows Cash flows Cash flows Projects CO C1 C2 A -30 20 20 What is the IRR of the project? A) 11.53% B) 21.53% C) 23.15% OD) 33.15%