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Please show your steps! Question 1 a) What is the NPV, IRR, and payback period of...
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?
7. The NPV and payback period What information does the payback period provide? Suppose you are...
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 is 2.50 years. Year Year 1 Year 2 Year 3 Year 4 Cash Flow $350,000 $450,000 $475,000 $450,000 If...
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 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 $350,000 Year 2 $475,000 Year 3 $400,000 Year 4 $475,000 If...
This assignment supports the following objectives: Calculate IRR, NPV and Payback Period Analyze the cash flows...
This assignment supports the following objectives: Calculate IRR, NPV and Payback Period Analyze the cash flows generated by mutually exclusive projects Formulate a recommendation using IRR, NPV and Payback Period as the criteria Background Suppose that your firm is considering the following two mutually exclusive projects. Both projects have the same initial cost of $312,500 and the resulting annual cash flows for the first five years are as shown in the table below: Year Alpha Beta 0 $ (312,500) $...
7. The NPV and payback period Aa Aa What information does the payback period provide? Suppose...
7. 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 ~WACC~ is 7%, the project's NPV (rounded to the nearest dollar)...
Comparison of Payback, NPV, and IRR Question 4: Exxon is considering drilling for oil in the...
Comparison of Payback, NPV, and IRR Question 4: Exxon is considering drilling for oil in the gulf coast near Texas. The proposed drilling site has the following information: (a) A rig will need to be setup which costs $1,200,000,000 in Year 0. (b) It will actually cost $100,000,000 for Exxon to shut down the rig and comply with EPA regulations at the end of its useful life in Year 20). (c) The rig will produce operating cash flows of $150,000,000...
(Payback period, NPV, PI, and IRR calculations) You are considering a project with an initial cash...
(Payback period, NPV, PI, and IRR calculations) You are considering a project with an initial cash outlay of $85.000 and expected free cash flows of $20,000 at the end of each year for 7 years. The required rate of return for this project is 6 percent. a. What is the project's payback period? b. What is the project's NPV? c. What is the project's PI? d. What is the project's IRR?
(Payback period, NPV, PI, and IRR calculations )You are considering a project with an initial cash...
(Payback period, NPV, PI, and IRR calculations )You are considering a project with an initial cash outlay of 90,000 and expected free cash flows of 30,000 at the end of each year for 6 years. The required rate of return for this project is 8 percent. a. What is the project's payback period? b. What is the project's NPV ? c. What is the project's PI ? d. What is the project's IRR ?
5. ULJI,123 dl the end of the next 3 years (Payback period, IRR, & NPV) You...
5. ULJI,123 dl the end of the next 3 years (Payback period, IRR, & NPV) You are considering a project with an initial cash outlay of $5,213, and expect to receive free cash flows $2,125 at the end of each year for the next 7 years. If required rate of return is 10%, what is the firm's a. Payback period? b. NPV? c. IRR? d. Should this project be accepted? (use answers to parts b and c)
(Payback period, NPV, PI, and IRR calculations) You are considering a project with an initial cash...
(Payback period, NPV, PI, and IRR calculations) You are considering a project with an initial cash outlay of $85 comma 000 and expected free cash flows of $30 comma 000 at the end of each year for 6 years. The required rate of return for this project is 6 percent. a. What is the project's payback period? b. What is the project's NPV? c. What is the project's PI? d. What is the project's 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?
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 is 2.50 years. Year Year 1 Year 2 Year 3 Year 4 Cash Flow $350,000 $450,000 $475,000 $450,000 If...
7. 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 ~WACC~ is 7%, the project's NPV (rounded to the nearest dollar)...
Comparison of Payback, NPV, and IRR Question 4: Exxon is considering drilling for oil in the gulf coast near Texas. The proposed drilling site has the following information: (a) A rig will need to be setup which costs $1,200,000,000 in Year 0. (b) It will actually cost $100,000,000 for Exxon to shut down the rig and comply with EPA regulations at the end of its useful life in Year 20). (c) The rig will produce operating cash flows of $150,000,000...
5. ULJI,123 dl the end of the next 3 years (Payback period, IRR, & NPV) You are considering a project with an initial cash outlay of $5,213, and expect to receive free cash flows $2,125 at the end of each year for the next 7 years. If required rate of return is 10%, what is the firm's a. Payback period? b. NPV? c. IRR? d. Should this project be accepted? (use answers to parts b and c)
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