Use the following cash flows to answer:
Year 0 = ($1,550); Year 1 = $850; Year 2 = $900. The firms WACC = 8%.
What is the IRR?
a) Between 7% & 8%
b) Between 8% & 9%
c) Between 9% & 10%
d) Between 10% & 11%
Use the following cash flows to answer: Year 0 = ($1,550); Year 1 = $850; Year...
6. Use the following after-tax cash flows for project A and B to answer the following question: (Numbers in parentheses are negative cash flows). These two projects are independent. Year Cash Flow of A Cash Flow of B 0 ($2,400) ($4,500) 1 $999 $800 2 $950 $950 3 ( $150) $950 4 $910 $800 5 $990 $900 6 ( $500) $1980 What is the approximate IRR of project A if the required rate of...
What is the IRR for the following set of cash flows Year Cash Flow 0:- 5000 1:900 2:2700 3:3900 4:1800 A 23 26.78 D 22
1. Allen Inc., is considering a project with the following cash flows. Year Cash Flows 0 -$32,374 1 $6,334 2 $13,790 3 $12,995 4 $20,673 5 $29,260 The company uses a discount rate of 7 percent on all of its projects. Calculate the profitability index of the project? 2. Elway Corp. is considering a project with the following cash flows. Year Cash Flows 0 -$45,331 1 $15,903 2 $24,490 3 $34,625 4 -$11,486 5 $40,937 The company uses a discount...
Question 7 5 pts Use the following after-tax cash flows for project A and B to answer the following question: (Numbers in parentheses are negative cash flows). These two projects are independent Year Cash Flow of A Cash Flow of B 0 ($2,400) ($4,500) 1 $999 $800 2 $950 $950 3 ($150) $950 $910 $800 5 $990 $900 6 ($500) $1980 What is the approximate payback of project B if the required rate of return is 10%? 4.56 years 6...
Geraldine Consultants, Inc. is considering a project that has the following cash flows: Year Cash Flow 0 -$1,000 1 400 2 300 3 500 4 400 The company's WACC is 10%. What are the project's payback, internal rate of return, and net present value? Select one: a. Payback = 2.6, IRR = 21.22%, NPV = $300. b. Payback = 2.4, IRR = 21.22%, NPV = $260. c. Payback = 2.6, IRR = 24.12%, NPV = $300. d. Payback = 2.4,...
What is the IRR of the following set of cash flows? Year Cash Flow 0 –$8,208 1 3,200 2 3,500 3 5,800 a. 21.72% b. 22.15% c. 20.63% d. 21.29% e. 22.81%
A project has the following cash flows: Year Cash Flow 0 $64,200 1 –30,200 2 –48,200 Required: (a) What is the IRR for this project? (Click to select)13.97%12.77%13.3%13.03%13.57% (b) What is the NPV of this project, if the required return is 11 percent? (Click to select)$-2,169.96$-2,042.31$2,127.41$-2,127.41$-2,233.78 (c) NPV at 0 percent? (Click to select)$-14,910.00$-14,200.00$-14,484.00$14,200.00$-13,632.00 (d) NPV at 22 percent? (Click to select)$7,203.38$-7,062.13$6,779.65$7,062.13$7,415.24
16) You are offered an investment that will pay the following cash flows at the end of each of the next five years at a cost of $800. What is the Net Present Value (NPV) if the required rate of return is 12% per year? Period Cash Flow 0 $0 1 $100 2 $200 3 $300 4 $400 5 $500 Remember that Excel’s NPV function doesn't really calculate the net present value. Instead, it simply calculates the present value of...
1. Time Cash Flows 0 ($200,000) 1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 0 9 0 10 $5,000,000 The internal rate of return of this cash flow stream is between 37% and 38%. True False 2. Time Cash Flows 0 ($100,000) 1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 0 9 0 10 0 11 0 12 $400,000 The internal rate of return of this...
Alpha Enterprises, Inc. is considering a project that has the following cash flows: Year: Cash Flow; 0: -$1,000 1: 500 2: 300 3: 900 4: 400 The company’s WACC is 10%. What is the project’s ordinary payback? Enter your answer rounded to two decimal places.