ZuoTi.Pro
Question

Section C [SKI, SK2: 10 mar C1: You are considering an investment in a project with a life of seven years, an initial outlay

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Cash iflaus C Discomt Ra P107 Presut 0.909 155,439 2 17100 0-826 141, 24c 122,42 16, 793 106 96, 444 στο 1I,oud 0683 O.620 02Pkack prieod Total Cash iaflers Qeo 12.6300 taki S263 avd For aing the initial inustmuot wp fake 6 mortry geara 263000 icounhfrojest project eshauld6 has The aeceptio sines pasitane NPV and wf be alal to iaitial out lay the within the fe tocouer i&

0 0
Add a comment
Know the answer?
Add Answer to:
Section C [SKI, SK2: 10 mar C1: You are considering an investment in a project with...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Mid-Term Exam Fall: 2019-2020 Section C: Long Question ISK1: 10 marks-Ix10 marks C1: You are considering an investme...

    Mid-Term Exam Fall: 2019-2020 Section C: Long Question ISK1: 10 marks-Ix10 marks C1: You are considering an investment in a project with a life of 5 years, an initial outlay of $105,000, and annual after-tax cash flows of $55,000. The project also requires an increase in inventories of $15,000. This $15,000 investment in inventory is required at the beginning of the project and will be released when the project is completed. The appropriate discount rate for this project is 10...

  • 10 RS - IXIU marks Ll: You are considering an investment in a pro of $105,000,...

    10 RS - IXIU marks Ll: You are considering an investment in a pro of $105,000, and annual after-tax cash flows of $55,000. The pro ming an investment in a project with a life of 5 years, an initial outlay increase in inventories of $15,000. This $15,0 ax cash flows of $55,000. The project also requires an ventories of $15,000. This $15,000 investment in inventory is required at the beginning of the project and will be * UI the project...

  • you are considering a project with an initial cash outlay of $74,000 and expected cash flows...

    you are considering a project with an initial cash outlay of $74,000 and expected cash flows of $23,680 at the end of each year for six years. the discount rate for the project is 9.7 percent. a. what are the project's payback discounted payback periods? - if the discount rate for this project is 9.7 percent, the discounted payback period of the project is how many years? b. what is the projects NPV? c. what is the project's PI? d....

  • Q4. (25 marks) Alina Smith is considering an investment which will cost her $120,000. The investment...

    Q4. (25 marks) Alina Smith is considering an investment which will cost her $120,000. The investment produces no cash flows for the first year. In the second year the cash inflow is $35,000. This inflow will increase to $55,000 and then $75,000 for the following two years before ceasing permanently. Alina requires a 10 % rate of return and has a required discounted payback period of three years. Calculate discounted payback period and comment whether the project should be accepted...

  • Question 10 7.5 pts You are considering a project with conventional cash flows. The IRR is...

    Question 10 7.5 pts You are considering a project with conventional cash flows. The IRR is 15.7 percent, NPV is -$198, and the payback period is 3.92 years. Which one of the following statements is correct given this information? This project should be accepted based on the internal rate of return. The discount rate used in computing the net present value was less than 15.7 percent. The required rate of return must be greater than 15.7 percent. The discounted payback...

  • QUESTION 1 Star Industries is considering three alternative projects for the company's investment. The cash flows for three independent projects are as follows: Year 1 Project A ($50,000) $10,...

    QUESTION 1 Star Industries is considering three alternative projects for the company's investment. The cash flows for three independent projects are as follows: Year 1 Project A ($50,000) $10,000 $15,000 $20,000 $25,000 $30,000 Project B ($100,000) $25,000 $25,000 $25,000 $25,000 $25,000 Project C ($450,000) $200,000 $200,000 $200,000 a) If the discount rate for all three projects is 9.5 percent, calculate the profitability index (PI) of these three projects. Which project will be accepted if the projects are mutually exclusive? b)...

  • CH. 9 WORKSHEET NPV and Other Investment Criteria For Problems 1-4, use a 5% discount rate...

    CH. 9 WORKSHEET NPV and Other Investment Criteria For Problems 1-4, use a 5% discount rate and the following cash flows for projects A and B.: A: (-$2000, $500, $600, $700, $800) B: (-$2000, $950, $850, $400, $300) 1. Calculate the payback period for projects A and B. 2. Calculate the internal rate of return for projects A and B. 3. If A and B are mutually exclusive and the required rate of return is 5%, which should be accepted?...

  • A firm is considering investing in a project that requires an initial investment of $200,000 and...

    A firm is considering investing in a project that requires an initial investment of $200,000 and is expected to produce cash inflows of $60,000, $80,000, and $100,000 in first, second, and third years. There will be no residual value. The firm applies a discount rate of 10%. Discount factors for Year 1, 2 and 3 are 0.909, 0.826, and 0.751 respectively. Required: i) Calculate the NPV of the project. ii) Explain the meaning of NPV and its advantages as an...

  • Header 04. (25 marks) Alina Smith is considering an investment which will cost her $120,000. The...

    Header 04. (25 marks) Alina Smith is considering an investment which will cost her $120,000. The investment produces no cash flows for the first year. In the second year the cash inflow is $35,000. This inflow will increase to $55,000 and then $75,000 for the following two years before ceasing permanently Alina requires a 10 % rate of retum and has a required discounted payback period of three years Calculate discounted payback period and comment whether the project should be...

  • (Discounted payback period) Gio's Restaurants is considering a project with the following expected cash flows: Year...

    (Discounted payback period) Gio's Restaurants is considering a project with the following expected cash flows: Year Project Cash Flow (millions) $(240) 72 80 95 If the project's appropriate discount rate is 11 percent, what is the project's discounted payback period? The project's discounted payback period is years. (Round to two decimal places.) (Discounted payback period) The Callaway Cattle Company is considering the construction of a new feed handling system for its feed lot in Abilene, Kansas. The new system will...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT