WACC= 8%; Cash flows $1100/ year for 3 years. Investment of $2700 day 1 is required....
WACC= 8%; Cash flows $1100/ year for 3 years. Investment of $2700 day 1 is required. What is NPV, IRR? How many years according to the Payback and Discounted Payback methods until one get’s PAID BACK?
Homework Answers
Request Answer!
We need at least 10 more requests to produce the answer.
0 / 10 have requested this problem solution
The more requests, the faster the answer.
Add Answer to:
WACC= 8%; Cash flows $1100/ year for 3 years.
Investment of $2700 day 1 is required....
9) 4 points WACC= 8%; Cash flows $1100/ year for 3 years. Investment of $2700 day...
9) 4 points WACC= 8%; Cash flows $1100/ year for 3 years. Investment of $2700 day 1 is required. What is NPV, IRR? How many years according to the Payback and Discounted Payback methods until one get's PAID BACK?
3. (8 marks) A proposed project has the following cash flows and a required return of...
3. (8 marks) A proposed project has the following cash flows and a required return of 12%. Year Cash Flow -450 250 -75 400 a) What is the payback period? (1.5 marks) 250-450 = -200 -75-200= -275 400-275-125 275/400=0.6875 So, 2.69 years to pay back. b) What is the discounted payback period? (2.5 marks) What is the NPV? (1 mark) d) What is the PI? (1 mark) e) Is it possible for this project to have multiple IRRs? If so,...
Assume the required rate of return is 12 percent Year Cash Flows 0 &
Assume the required rate of return is 12 percent Year Cash Flows 0 - $144,000 1 $33,000 2 $46,000 3 $58,000 4 $72,000 -What is the NPV of the above cash flows - What is the IRR -What is the Profitability Index -What is the payback period of the project -What is the discounted payback period
Consider the following 5-years investment table of Agus's cash flow with required return rate j=11% (RRR)....
Consider the following 5-years investment table of Agus's cash flow with required return rate j=11% (RRR). Discounted is a discount factor based on RRR. Contribution is amount of money that Agus paid to start the business (investment). Whereas, return is amount of money that Agus received from the investment. Furthermore, PV Contrib is present value of Contribution based on RRR, then Net Cash Flow is Return minus Contribution. Moreover, Discounted Cash Flow is present value of Net Cash Flow based...
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....
Geraldine Consultants, Inc. is considering a project that has the following cash flows: Year Cash Flow...
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,...
Suppose You are given the following cash flows: find the payback period, the IRR, and the...
Suppose You are given the following cash flows:
find the payback period,
the IRR,
and the required rate of return in 8%
1. Suppose you are given the following cash flows: Initial Investment -120 Year 1 Cash Flow +70 Year 2 Cash Flow +60 Year 3 Cash Flow +40 a. (7 points) What is the payback period on the investment? +20 70 60 40 1 3 tr 3.02 Ø & 3 years b. (7 points) What is the IRR for...
Q1) A proposed overseas expansion has the following cash flows:- Year Cash Flows Net income 12000...
Q1) A proposed overseas expansion has the following cash flows:- Year Cash Flows Net income 12000 Cost of asset Accumulated 200 0 Depreciation | | 2000 | Required Rate of Return 4000 Required Payback 4 years 50 10% 60 70 200 6000 Cost of Capital 8000 12% The required rate of return of 10%. The required payback is 4 years. Assume we require an average accounting return of 25% Required: 1. Calculate the payback period 2. Calculate the discounted payback...
An investment project costs $18,500 and has annual cash flows of $4,400 for six years. Required : (a) What is the discou...
An investment project costs $18,500 and has annual cash flows of $4,400 for six years. Required : (a) What is the discounted payback period if the discount rate is zero percent? (b) What is the discounted payback period if the discount rate is 4 percent? (c) What is the discounted payback period if the discount rate is 19 percent?
An investment project costs $10,000 and has annual cash flows of $2,960 for six years. What...
An investment project costs $10,000 and has annual cash flows of $2,960 for six years. What is the discounted payback period if the discount rate is zero percent? (Enter 0 if the project never pays back. Round your answer to 2 decimal places, e.g., 32.16.) Discounted payback period years What is the discounted payback period if the discount rate is 5 percent? (Enter 0 if the project never pays back. Round your answer to 2 decimal places, e.g., 32.16.) Discounted...
9) 4 points WACC= 8%; Cash flows $1100/ year for 3 years. Investment of $2700 day 1 is required. What is NPV, IRR? How many years according to the Payback and Discounted Payback methods until one get's PAID BACK?
3. (8 marks) A proposed project has the following cash flows and a required return of 12%. Year Cash Flow -450 250 -75 400 a) What is the payback period? (1.5 marks) 250-450 = -200 -75-200= -275 400-275-125 275/400=0.6875 So, 2.69 years to pay back. b) What is the discounted payback period? (2.5 marks) What is the NPV? (1 mark) d) What is the PI? (1 mark) e) Is it possible for this project to have multiple IRRs? If so,...
Consider the following 5-years investment table of Agus's cash flow with required return rate j=11% (RRR). Discounted is a discount factor based on RRR. Contribution is amount of money that Agus paid to start the business (investment). Whereas, return is amount of money that Agus received from the investment. Furthermore, PV Contrib is present value of Contribution based on RRR, then Net Cash Flow is Return minus Contribution. Moreover, Discounted Cash Flow is present value of Net Cash Flow based...
Suppose You are given the following cash flows:
find the payback period,
the IRR,
and the required rate of return in 8%
1. Suppose you are given the following cash flows: Initial Investment -120 Year 1 Cash Flow +70 Year 2 Cash Flow +60 Year 3 Cash Flow +40 a. (7 points) What is the payback period on the investment? +20 70 60 40 1 3 tr 3.02 Ø & 3 years b. (7 points) What is the IRR for...
Q1) A proposed overseas expansion has the following cash flows:- Year Cash Flows Net income 12000 Cost of asset Accumulated 200 0 Depreciation | | 2000 | Required Rate of Return 4000 Required Payback 4 years 50 10% 60 70 200 6000 Cost of Capital 8000 12% The required rate of return of 10%. The required payback is 4 years. Assume we require an average accounting return of 25% Required: 1. Calculate the payback period 2. Calculate the discounted payback...
An investment project costs $10,000 and has annual cash flows of $2,960 for six years. What is the discounted payback period if the discount rate is zero percent? (Enter 0 if the project never pays back. Round your answer to 2 decimal places, e.g., 32.16.) Discounted payback period years What is the discounted payback period if the discount rate is 5 percent? (Enter 0 if the project never pays back. Round your answer to 2 decimal places, e.g., 32.16.) Discounted...
Most questions answered within 3 hours.
-
Plantinga argues for the view that there is no solution to the
problem of moral evil....
asked 35 seconds ago -
For this Discussion, you examine a case study of
hearing-impaired children who developed their own language...
asked 5 minutes ago -
A solution is prepared by dissolving 11.60 g of a mixture of
sodium carbonate and sodium...
asked 2 minutes ago -
At the beginning of the year, Palermo Brothers, Inc., purchased
a new plastic water bottle making...
asked 3 minutes ago -
You could argue that even though Rockefeller clearly had
enormous market power (90% of the market)...
asked 4 minutes ago -
1. Mini Case Study: Suppose that, in the future, most jobs will
be bid upon by...
asked 4 minutes ago -
The moment of inertia of a disk rotating about its axis of
symmetry is Icm=1/2MR^2
The...
asked 12 minutes ago -
When using a relational database what makes data
formatting so important and critical to the functions...
asked 22 minutes ago -
The following temperatures show the (fictional) daily low
measured at O'Hare airport every January 1st from...
asked 42 minutes ago -
Your friend is interested in the characteristics of fast tree
planters. He searched through the records...
asked 50 minutes ago -
. 0.67 g of Ag is deposited electrolytically from
AgNO3 after a certain period of time...
asked 51 minutes ago -
assuming that the boric acid, h3po3 present at the end of the
borax tritation has a...
asked 50 minutes ago