37) A project with an investment of $12,000 has net cash flows of $6,000, $5,000, 4,000,...
37) A project with an investment of $12,000 has net cash flows of $6,000, $5,000, 4,000, and $3,000 for each of the next four years. Compute the average rate of return for the project?
|
A. 2. 11 |
||
| B. |
1.86 |
|
| C. |
0.45 |
|
| D. |
0.99 |
|
| E. |
0.75 |
Homework Answers
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37) A project with an investment of $12,000 has net cash flows
of $6,000, $5,000, 4,000,...
Calculate the payback period for a project that has the following cash flows? The required return...
Calculate the payback period for a project that has the following cash flows? The required return is 12.0%. Year Cash Flow 0 $ (12,000) 1 $ 1,000 2 $ 2,000 3 $ 3,000 4 $ 4,000 5 $ 5,000 6 $ 6,000 2.25 years 3.25 years 3.85 years 4.40 years None of these are correct.
Calculate the payback period for a project that has the following cash flows? The required return...
Calculate the payback period for a project that has the following cash flows? The required return is 12.0%. Year Cash Flow 0 $ (12,000) 1 $ 1,000 2 $ 2,000 3 $ 3,000 4 $ 4,000 5 $ 5,000 6 $ 6,000 Group of answer choices 2.25 years 3.85 years 3.25 years 4.40 years None of these are correct.
Calculate the payback period for a project that has the following cash flows? The required return...
Calculate the payback period for a project that has the following cash flows? The required return is 12.0%. Year Cash Flow 0 $ (12,000) 1 $ 6,000 2 $ 5,000 3 $ 4,000 4 $ 3,000 5 $ 2,000 6 $ 1,000 Group of answer choices 2.25 years None of these are correct. 3.25 years 4.40 years 3.85 years
3. Calculating Discounted Payback An investment project has annual cash inflows of $5,000, $5,500, $6,000, and...
3. Calculating Discounted Payback An investment project has annual cash inflows of $5,000, $5,500, $6,000, and $7,000, and a discount rate of 12 percent. What is the discounted payback period for these cash flows if the initial cost is $8,000? What if the initial cost is $12,000? What if it is $16,000?
An investment cost $12,000 with expected cash flows of $4,000 for 7 years. The discount rate...
An investment cost $12,000 with expected cash flows of $4,000 for 7 years. The discount rate is 15.2382%. The IRR is ___ for the project, thus we should ____ the project. Select one: A. 12.59%, accept B. 12.59%, reject C. 27.12%, accept
A project requires an initial investment of $4,000. The project is expected to generate positive cash...
A project requires an initial investment of $4,000. The project is expected to generate positive cash flows of $2,500 a year for next three years and additional $300 in the last year (i.e., third year) of the project’s life. The required rate of return is 12%. What is the project’s net present value (NPV)? Based on the calculated NPV, should the project be accepted or rejected?
You are given three investment alternatives to analyze. The cash flows from these three investments as...
You are given three investment alternatives to analyze. The cash flows from these three investments as followed: End of the year A B C 1 $3,000 $3,000 4,000 2 4,000 3,000 4,000 3 5,000 3,000 (4,000) 4 (6,000) 3,000 (4,000) 5 6,000 5,000 14,000 What is the present value of Investment A at an annual discount rate of 11 percent?
Problem 2 . Consider the cash flow . Project Cash Flows series given for an investment...
Problem 2 . Consider the cash flow . Project Cash Flows series given for an investment project. Determine the project balances over the life of the project at an interest rate of 12%. End of Year Cash Flow $3,000 -$1,500 $4,000 $3,000 $5,000 0 4
An investment promises to pay you cash flows of $12,000 at the end of each year...
An investment promises to pay you cash flows of $12,000 at the end of each year for the next 11 years. If you were to pay $75,000 today for this investment, what would your annual rate of return be? (Calculate your answer as a percentage. Type 86 for 86%).
A project has an initial investment of -$112,000 and cash flows of $20,800 for the first...
A project has an initial investment of -$112,000 and cash flows of $20,800 for the first three years, $12,300 for the next two years, and $5,000 for another three years. The required rate of return is 13 percent. What is the NPV? 13,449 52,490 39,392 -80,495 -42,261
3. Calculating Discounted Payback An investment project has annual cash inflows of $5,000, $5,500, $6,000, and $7,000, and a discount rate of 12 percent. What is the discounted payback period for these cash flows if the initial cost is $8,000? What if the initial cost is $12,000? What if it is $16,000?
Problem 2 . Consider the cash flow . Project Cash Flows series given for an investment project. Determine the project balances over the life of the project at an interest rate of 12%. End of Year Cash Flow $3,000 -$1,500 $4,000 $3,000 $5,000 0 4
An investment promises to pay you cash flows of $12,000 at the end of each year for the next 11 years. If you were to pay $75,000 today for this investment, what would your annual rate of return be? (Calculate your answer as a percentage. Type 86 for 86%).
A project has an initial investment of -$112,000 and cash flows of $20,800 for the first three years, $12,300 for the next two years, and $5,000 for another three years. The required rate of return is 13 percent. What is the NPV? 13,449 52,490 39,392 -80,495 -42,261
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