Calculate the NPV given the following cash flows, if the appropriate required rate of return is...

Question

Question

Calculate the NPV given the following cash flows, if the appropriate required rate of return is 12 percent. Should the project be accepted?

YEAR   CASH FLOWS
0   -40000
1   20000
2   20000
3   15000
4   15000
5   10000
6   10000

Answer 1

Answer #1

So, the value of NPV is $24751.08

As the NPV is positive, the project should be accepted

Answer 2

Similar Homework Help Questions

Calculate the NPV given the following cash flows, if the appropriate required rate of return is...

Calculate the NPV given the following cash flows, if the appropriate required rate of return is 9 percent. Should the project be accepted? What is the project's NPV? YEAR CASH FLOWS 0 -40,000 1 20,000 2 20,000 3 15,000 4 15,000 5 30,000 6 30,000
(NPV calculation) Calculate the NPV given the following cash flows, __, if the appropriate required rate...

(NPV calculation) Calculate the NPV given the following cash flows, __, if the appropriate required rate of return is 8 percent. Should the project be accepted? What is the project's NPV? $ (Round to the nearest cent.) YEAR CASH FLOWS 0 −$90,000 1 30,000 2 30,000 3 25,000 4 25,000 5 10,000 6 10,000 (Click on the icon located on the top-right corner of the data table above in order to copy its contents into a spreadsheet.) PrintDone
(NPV calculation) Calculate the NPV given the following free cash flows, YEAR CASH FLOWS 0 -50...

(NPV calculation) Calculate the NPV given the following free cash flows, YEAR CASH FLOWS 0 -50,000 1 30,000 2 30,000 3 30,000 4 -30,000 5 30,000 6 30,000 if the appropriate required rate of return is 12 percent. Should the project be accepted? What is the project's NPV?

Given the following cash flows for two mutually exclusive projects, and a required rate of return...

Given the following cash flows for two mutually exclusive projects, and a required rate of return of 12%, which of the following statements is true? Year 0 1 Project A -580,000 290,000 290,000 150,000 150,000 2 3 Project B -580,000 130,000 130,000 230.000 230,000 230.000 115,000 4 5 6 O Both projects should be accepted because both have a positive NPV (and EAA). O Project B should be accepted because it has the highest EAA. O Project B should be...
Given the following cash flows for a capital project, calculate the NPV and IRR. The required...

Given the following cash flows for a capital project, calculate the NPV and IRR. The required rate of return is 8 percent Cash Flows Year 0$-50825 Year 1 $18550 Year 2 $11350 Year 3 $20900 Year 4 $9200 Year 5 $4250
1. Given the following set of cash flows for a project, calculate the NPV, PI, IRR,...

1. Given the following set of cash flows for a project, calculate the NPV, PI, IRR, MIRR, Payback, Discounted Payback and Accounting Rate of Return. Assume a cost of capital of 10%. Assuming that this is an independent project, should the project be accepted? Why or why not? (20 pts.) Year Cash Flow Net Profit Depreciation 0 -$125,000 1 $22,000 $15,000 $10,000 2 $58,000 $43,000 $25,000 3 -$30,000 $24,000 $21,000 4 $35,000 $28,000 $18,000 5 $28,000 $20,000 $15,000 6 $60,000 ...

Given the following cash flows for a capital project, calculate the Payback period, NPV, PI, IRR,...

Given the following cash flows for a capital project, calculate the Payback period, NPV, PI, IRR, and MIRR. The required rate of return is 8 percent. Year CF 0 $(50,000.00) 1 $15,000.00 2 $15,000.00 3 $15,000.00 4 $15,000.00 5 $5,000.00
Given the following cash flows for two mutually exclusive projects, and a required rate of return...

Given the following cash flows for two mutually exclusive projects, and a required rate of return of 12%, what is the EAA for Project A? Year Project A Project B 0 -580,000 -580,000 1 290,000 130,000 2 290,000 130,000 3 150,000 230,000 4 150,000 230,000 5 230,000 6 115,000 Given the following cash flows for two mutually exclusive projects, and a required rate of return of 12%, what is the EAA for Project A?
1) (12 pts) The following is a cash flow diagram: Cash Flows: 20000 10000 Cash Flow...

1) (12 pts) The following is a cash flow diagram: Cash Flows: 20000 10000 Cash Flow $35,000 $5,000 $7,500 $1000 $10,000 $5,000 Year 0 1 2 4 >-10000 -20000 30000 40000 Years 4 Annual Interest rate = 10%, compounded annually a) Calculate the Present wortlh b) Calculate the equivalent annuity for these cash flows c) Calculate the future worth of these cash flows at 5 years

What is the projects NPV? Should they accept the project? calculation) Calculate the NPV given the...

What is the projects NPV? Should they accept the project? calculation) Calculate the NPV given the following cash flows, EB. if the appropnate required rate of return is 14 percent. Should the project be accepted? What is the project's NPV 扣(Round to the nearest cent) i Data Table CASH FLOWS $50,000 35,000 35,000 35,000 -35,000 35,000 35,000

Calculate the NPV given the following cash​ flows, if the appropriate required rate of return is...