Net present value Using a cost of capital of 10%, calculate the net present value for the project shown in the following table and indicate whether it is acceptable. Initial investment $-1,150 Year Cash inflows 1 $80 2 $135 3 $190 4 $255 5 $315 6 $380 7 $275 8 $100 9 $45 10 $25
Net present value Using a cost of capital of 14%, calculate the net present value for the project shown in the following table and indicate whether it is acceptable, E: The net present value (NPV) of the project is $ . (Round to the nearest cent.) Data Table - X Is the project acceptable? (Select the best answer below.) O O No Yes in order to copy the contents of the data table below (Click on the icon here into...
Net Present Value and Other Investment Rules Describe how net present value is used in the financial decision-making process. Explain the disadvantages of using the payback method. Compare and contrast the internal rate of return (IRR) method from the net present value method (NPV).
Assuming monetary benefits of an information system at $85,000 per year, one-time costs of $75,000, recurring costs of $35,000 per year, a discount rate of 12 percent,and a five-year time horizon, calculate the net present value of these costs and benefits of an information system. Also, calculate the overall return oninvestment
Calculate the net present value for a 15-year project with an initial investment of $ 0 and a cash inflow of $2,000 per year. Assume that the firm has an opportunity cost of 13%. Comment on the acceptability of the project. The project's net present value is $____ .
15. (Net Present Value) Calculate the project's net present value. The cost of capital is 10%. An initial cash outflow of $6,235 and a free cash flow of $7,125 in 5 years. b. An initial cash outflow of $6,235 and a free cash flow of $7,125 in 3 years An initial cash outflow of $6,235 and a free cash flow of $7,125 in 10 years An initial cash outflow of $6,235 and a free cash flow of $1,125 at the...
1. Calculate the net present value (NPV) for a 10-year project with an initial investment of $25,000 and a cash inflow of $7,000 per year. Assume that the firm has an opportunity cost of 17%. The project's net present value is $_____.
how the net present value used to analysis investment projects ?
under the net present value criterion, a project is approved if A.) its net present value is positive and funds are unlimited b.) its net present value is negative c.) the funds are unlimited d.) its net present value is positive
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present value method, present value index, and analysis
Net Present Value Method, Present Value Index, and Analysis United Bankshores, Inc. withes to evaluate the capital investment proposals by using the net present value method. Relevant data related to the proposals are summarized as follows Branch Office Expansion Computer System Upgrade Install Internet Bill Pay Amount to be invested 5681,158 5542,054 $256.337 Annual net cash flows Year 2 347,000 323,000 295.000 243,000 219,000 194,000 149.000 103,000 75.000 Present Value of...