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Option C
A proposed project has an initial cost of $38,000 and cash inflows of $12,300, $24,200, and...
1. A proposed project has an initial cost of $69,500 and is expected to produce cash inflows of $32,200, $50,500, and $43,000 over the next 3 years, respectively. What is the net present value of this project at a discount rate of 15.8 percent? $23,657.30 $21,763.60 $24,050.28 $24,933.59 2. A project has an initial cost of $19,000 and cash inflows of $4,200, $4,600, $11,600, and $5,750 over the next 4 years, respectively. What is the payback period? 4.22 years 2.88...
Use the following information to answer questions 16 through 20. You are analyzing a proposed project and have compiled the following information Year Cash flow 0 $145,000 1 $33,400 $ 70,500 $ 82,100 Required payback period 3 years Required return 9.50 percent 16. What is the net present value of the proposed project? a. S6,239.12 b. 58.221.29 c. S6,831.84 d. 58,376.91 17. Should the project be accepted based on the internal rate of return (IRRY? Why or why not? a....
An investment has the following cash flows. Should the project be accepted if it has been assigned a required return of 14 percent? why or why not? Financial calculator is appropriate here. Year Cash flows -$30,000 $8400 $13,900 $18,600 0 1 2 3 A. No, the IRR exceeds the required return by about 1.08 percent OB. No the IRR is less that the required return by about 0.97 percent C. Yes, the IRR exceeds the required return by about 1.08...
Nelson’s Industrial Supply is considering a project that has projected cash inflows of $8,400 a year for 3 years. The initial cost of the project is $21,000 and the required return is 10.75 percent. Should this project be accepted based on the profitability index criterion? Why or why not? multiple choice: Multiple Choice no; because the PI is 1.54 yes; because the PI is 1.54 yes; because the PI is .98 no; because the PI is .98
Lucie is reviewing a project with an initial cost of $38,700 and cash inflows of $9,800, $16,400, and $21,700 for Years 1 to 3, respectively. Should the project be accepted if it has been assigned a required return of 9.75 percent? Why or why not?
3. You are considering two mutually exclusive projects with the following cash flows. Which project(s) should you accept if the discount rate is 8.5 percent? What if the discount rate is 13 percent? Year Project A Project B -$80,000 -$80,000 31,000 31,000 0 31,000 110,000 A. accept project A as it always has the higher NPV B. accept project B as it always has the higher NPV C. accept A at 8.5 percent and B at 13 percent D. accept...
Your company has a project available with the following cash flows: Year Cash Flow -$81,400 21,350 24,700 30,500 25,850 19,500 If the required return is 14 percent, should the project be accepted based on the IRR? Multiple Choice Yes, because the IRR is 15.82 percent. O Yes, because the IRR is 16.46 percent. O No, because the IRR is 15.19 percent. O Yes, because the IRR is 15.19 percent. C) No, because the IRR is 16.46 percent.
•A project has an initial cost of $18,000 and is expected to produce cash inflows of $7,000, $9,000, and $7,500 over the next three years, respectively. What is the discounted payback period if the required rate of return is 12 percent?
A project has the following cash inflows $40,000; $60,500; $70,000; and $48,800 for years 1 through 4, respectively. The initial cash outflow is $184,000. Which of the following four statements is correct concerning the project internal rate of return (IRR)? Select one: a. The IRR is less than 10% b. The IRR is greater than or equal to 10%, but less than 14%. Incorrect c. The IRR is greater than or equal to 14%, but less than 18%. d. The...
Rochester Mobile is considering a project with an initial cost of $108,400. The project's cash inflows for years 1 through 3 are $35,200, $52,600, and $46,900, respectively. What is the IRR of this project? Select one: a. 7.48 percent b. 8.22 percent 8.42 percent 15.56 percent e. 11.15 percent