How does net working capital affect the NPV of a 4-year project if working capital is...
How does net working capital affect the NPV of a 4-year project if working capital is expected to increase by $12,000 and the project has a 8.3% discount rate? Answer to 2 decimal places, for example 100.12.
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How does net working capital affect the NPV of a 4-year project
if working capital is...
A project requires an increase in net working capital of $425,000 at time 0 that will...
A project requires an increase in net working capital of $425,000 at time 0 that will be recovered at the end of its 20 year life. If opportunity cost of capital is 12%, what is the effect on the NPV of the project? Enter your answer rounded to two decimal places. Effect on NPV= Number
A project has an initial requirement of $192212 for new equipment and $8681 for net working...
A project has an initial requirement of $192212 for new equipment and $8681 for net working capital. The installation costs are expected to be $19053. The fixed assets will be depreciated to a zero book value over the 4-year life of the project and have an estimated salvage value of $126130. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $96063 and the cost of capital is 6%...
What is the net working capital requirements of the project?How can we include it for NPV...
What is the net working capital requirements of the project?How can we include it for NPV calculation?
Down Under Boomerang, Inc., is considering a new 6-year project that requires an initial investment in...
Down Under Boomerang, Inc., is considering a new 6-year project that requires an initial investment in a fixed asset of $6.426 million. The fixed asset will be depreciated straight- line to zero over its 6-year life. After Year O, the project is expected to generate $5,712,000 in annual sales per year, with operating costs of $2,284,800 per year. The tax rate is 33 percent and the appropriate discount rate is 17 percent. The project requires an increase in net working...
Telecom Italia is considering the investment in a capital project. The initial cost in year 0...
Telecom Italia is considering the investment in a capital project. The initial cost in year 0 is $130,000 to be depreciated straight over 5 years to an expected salvage value of $15,000. The firm’s tax rate is 35% and it has a 10% cost of capital (the firm's discount rate, or "hurdle" rate). For this project an additional investment in working capital of $12,000 is required and it will be recovered in full at the end of the project’s life....
NPV A project has an initial cost of $61,975, expected net cash inflows of $15,000 per...
NPV A project has an initial cost of $61,975, expected net cash inflows of $15,000 per year for 10 years, and a cost of capital of 13%. What is the project's NPV (Hint: Begin by constructing a timeline.) Do not round Intermediate calculations. Round your answer to the nearest cent. A project has an initial cost of $60,000, expected net cash inflows of $14,000 per year for 7 years, and a cost of capital of 8%. What is the project's...
A project has an NPV of $44,000. Calculate the cost of capital of this project if...
A project has an NPV of $44,000. Calculate the cost of capital of this project if it generates the following cash flows for six years after an initial investment of $190,000: (Round answer to 2 decimal places, e.g. 25.25%.) Year 1: $44,000 Year 2: $44,000 Year 3: $25,000 Year 4: $72,000 Year 5: $56,000 Year 6: $67,000 cost of capital= ?%
8. A project has an initial cost of $71,950, expected net cash inflows of $9,000 per...
8. A project has an initial cost of $71,950, expected net cash inflows of $9,000 per year for 6 years, and a cost of capital of 10%. What is the project's PI? Do not round your intermediate calculations. Round your answer to two decimal places. 9. A project has an initial cost of $54,925, expected net cash inflows of $12,000 per year for 8 years, and a cost of capital of 11%. What is the project's payback period? Round your...
14) In a before-tax analysis of a project, which of the following would not affect NPV?...
14) In a before-tax analysis of a project, which of the following would not affect NPV? an increase a change in the estimated scrap value of an asset used solely in the project a change in the expected life of the project a change in the discount rate for the project money already spent on designs for the project in the working capital requirements for the project. a. b. c. d. e. 15) Which of the following ratios gives the...
Changes in the net working capital: O can affect the cash flows of a project every...
Changes in the net working capital: O can affect the cash flows of a project every year of the project's life. are generally excluded from project analysis due to their irrelevance to the total project. affect the initial and the final cash flows of a project but not the cash flows of the middle years. O only affect the initial cash flows of a project. are included in project analysis only if they represent cash outflows. The addition to retained...
A project requires an increase in net working capital of $425,000 at time 0 that will be recovered at the end of its 20 year life. If opportunity cost of capital is 12%, what is the effect on the NPV of the project? Enter your answer rounded to two decimal places. Effect on NPV= Number
Down Under Boomerang, Inc., is considering a new 6-year project that requires an initial investment in a fixed asset of $6.426 million. The fixed asset will be depreciated straight- line to zero over its 6-year life. After Year O, the project is expected to generate $5,712,000 in annual sales per year, with operating costs of $2,284,800 per year. The tax rate is 33 percent and the appropriate discount rate is 17 percent. The project requires an increase in net working...
NPV A project has an initial cost of $61,975, expected net cash inflows of $15,000 per year for 10 years, and a cost of capital of 13%. What is the project's NPV (Hint: Begin by constructing a timeline.) Do not round Intermediate calculations. Round your answer to the nearest cent. A project has an initial cost of $60,000, expected net cash inflows of $14,000 per year for 7 years, and a cost of capital of 8%. What is the project's...
14) In a before-tax analysis of a project, which of the following would not affect NPV? an increase a change in the estimated scrap value of an asset used solely in the project a change in the expected life of the project a change in the discount rate for the project money already spent on designs for the project in the working capital requirements for the project. a. b. c. d. e. 15) Which of the following ratios gives the...
Changes in the net working capital: O can affect the cash flows of a project every year of the project's life. are generally excluded from project analysis due to their irrelevance to the total project. affect the initial and the final cash flows of a project but not the cash flows of the middle years. O only affect the initial cash flows of a project. are included in project analysis only if they represent cash outflows. The addition to retained...
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