Under worst case scenario;payback will be at end of six years.
Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)
=872,000/1.12^6
=$441,782.34
NPV=Present value of inflows-Present value of outflows
=$441,782.34-872,000
=($430,217.66)(Approx)(Negative).
An investment under consideration has a payback of six years and a cost of $872,000. Assume...
An investment under consideration has a payback of seven years and a cost of $685,000. Assume the cash flows are conventional. If the required return is 11 percent, what is the worst-case NPV? (A negative answer should be indicated by a minus sign. Round your answer to 2 decimal places, e.g., 32.16.)
#2 An investment under consideration has a payback of six years and a cost of $573,000. If the required return is 12 percent, what is the worst-case NPV? The best-case NPV? Explain. Assume the cash flows are conventional. De 1 of 1
23. Payback and NPV An investment under consideration has a payback of seven years and a cost of $537,000. If the required return is 12 percent, what is the worst-case NPV? The best-case NPV? Explain. Assume the cash flows are conventional.
A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Year Cash Flow -$34,000 15,000 17,000 13,000 What is the NPV of the project if the required return is 11 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV At a required return of 11 percent, should the firm accept this project? Yes O No What is the NPV of...
A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Year Cash Flows 0 -3883 1 1642 2 2177 3 1967 What is the NPV for the project if the required return is 25 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Year O Cash Flow -$27,800 11,800 14,800 10,800 What is the NPV for the project if the required return is 11 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV At a required return of 11 percent, should the firm accept this project? No Yes What is the NPV for...
A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Year 0 Cash Flow -$28,300 12,300 15,300 11,300 2 3 What is the NPV for the project if the required return is 11 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV 3461.37 At a required return of 11 percent, should the firm accept this project? Yes No What is...
A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Year Cash Flow 0 –$ 27,900 1 11,900 2 14,900 3 10,900 What is the NPV for the project if the required return is 10 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV $ At a required return of 10 percent, should the firm accept...
A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: YearCash Flow -$34,000 15,000 7,000 13,000 0 :3 What is the NPV of the project if the required return is 11 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV What is the NPV of the project if the required return is 24 percent? (A negative answer should be indicated...
A) A project that provides annual cash flows of $14369 for eight years costs $77894 today. What is the NPV for the project if the required return is 7 percent? (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places. (e.g., 32.16)) B) A project that provides annual cash flows of $17545 for eight years costs $75634 today. What is the NPV for the project if the required return is 19 percent? (Negative amount...