An investment that costs $5,000 will produce annual cash flows of $2,000 for a period of 4 years. Given a desired rate of return of 10%, what is the present value index? Use Appendix Table 2. (Do not round your intermediate calculations. Round your answer to three decimal points.)
Present value index = Present value of cash inflow/Present value of cash outflow
= (2000*3.16987)/5000
Present value index = 1.268 Times
An investment that costs $5,000 will produce annual cash flows of $2,000 for a period of...
1. An investment that costs $36,500 will produce annual cash flows of $12,210 for a period of 4 years. Given a desired rate of return of 10%, the investment will generate a (Do not round your PV factors and intermediate calculations. Round your answer to the nearest whole dollar): negative net present value of $2,204. positive net present value of $2,204. negative net present value of $38,704. positive net present value of $38,704. 2. The amount of the depreciation tax...
An investment that costs $5,000 will produce annual cash flows of $2,000 for a period of 4 years. Given a desired rate of return of 8%, what is the present value Index? Use Appendix Table 2. (Do not round your Intermediate calculations. Round your answer to three decimal points.) ded Multiple Choice 0.755. 1.600 2.500. O 1225 < Prey 6 of 10 !!! Next > Apps Canvas Home Florida So... FSW Libraries Manager CFA Home Heasooksvampe home/ TABLE 2 PRESENT...
An investment that costs $28,000 will produce annual cash flows of $5,600 for a period of 6 years. Further, the investment has an expected salvage value of $3,300. Given a desired rate of return of 10%, the investment will generate a :
An investment project has annual cash inflows of $5,000, $3,300, $4,500, and $3,700, for the next four years, respectively. The discount rate is 14 percent. a. What is the discounted payback period for these cash flows if the initial cost is $5,100? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the discounted payback period for these cash flows if the initial cost is $7,200? (Do not round intermediate calculations and...
An investment project costs $10,000 and has annual cash flows of $2,890 for six years. a. What is the discounted payback period if the discount rate is zero percent? (Enter O if the project never pays back. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the discounted payback period if the discount rate is 4 percent? (Enter O if the project never pays back. Do not round intermediate calculations and...
Payback Period and Accounting Rate of Return: Equal Annual Operating Cash Flows without Disinvestment Juliana is considering an investment proposal with the following cash flows: Initial investment-depreciable assets $35,000 Net cash inflows from operations (per year for 10 years) 5,000 Disinvestment 0 For parts b. and c., round answers to three decimal places, if applicable. a. Determine the payback period. ____ years b. Determine the accounting rate of return on initial investment. c. Determine the accounting rate of return on...
1. Aerospace Dynamics will invest $158,000 in a project that will produce the following cash flows. The cost of capital is 11 percent. (Note that the fourth year’s cash flow is negative.) Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. Year Cash Flow 1 $ 49,000 2 59,000 3 50,000 4 (54,000 ) 5 110,000 a. What is the net present value of the project? (Negative amount should...
Payback period and Accounting Rate of Return: Equal Annual Operating Cash Flows with Disinvestment Roopali is considering an investment proposal with the following cash flows: Initial investment-depreciable assets $125,000 Initial investment-working capital 19,000 Net cash inflows from operations (per year for 12 years) 18,000 Disinvestment-depreciable assets 14,000 Disinvestment-working capital 2,000 For parts b. and C., round answers to three decimal places, if applicable. a. Determine the payback period. 8 years b. Determine the accounting rate of return on initial investment...
A project that will provde annual cash flows of $2,750 for nine years costs $9,000 today. a. At a required return of 10 percent, what is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. At a required return of 29 percent, what is the NPV of the project? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer...
An investment project has annual cash inflows of $4,000, $4,900, $6,100, and $5,300, for the next four years, respectively. The discount rate is 13 percent. What is the discounted payback period for these cash flows if the initial cost is $6,700? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Discounted payback period years What is the discounted payback period for these cash flows if the initial cost is $8,800? (Do not round intermediate...