A project is expected to produce FCFF OF $500 every year for 5 years starting in...
A project is expected to produce FCFF OF $500 every year for 5 years starting in 4 years. If the perpetual initial cost is $1,000, and 14.6% is the proper discount rate, what is the NPV?
a. 288.40 b. 124.26 c. 692.07 d. 413.21
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A project is expected to produce FCFF OF $500 every year for 5
years starting in...
24. If a project has: year 0 -500 year 1- $200 year 2 for this project is: a) 2 years b) 2.5 years c)3 years d) 3.5 yea...
24. If a project has: year 0 -500 year 1- $200 year 2 for this project is: a) 2 years b) 2.5 years c)3 years d) 3.5 years $200 and year 3- $200, then the payback period 25. A project has an initial cost of -10,000. Cash flows of 3,000 will be generated for the next 7 years. If required return is 10%; what is the NPV of this project a) $4,605 b) $8,605 c) $10,605 d) $14,605
24. If...
There is a 5-year project that is expected to generate $32 million of cash revenue per year for the first 3 years and then S10 million per year for the next 2 years. The upfront cost to start the pro...
There is a 5-year project that is expected to generate $32 million of cash revenue per year for the first 3 years and then S10 million per year for the next 2 years. The upfront cost to start the project is $90 million, and then it will cost $5 million per year to maintain this project. At the end of the project, the used fixed and working capital, which will be fully depreciated to 0 on the book, can be...
Project ABC has a cost of $80M two years from now, and will generate a cash...
Project ABC has a cost of $80M two years from now, and will generate a cash flow stream that pays $20M every year starting from year 3 until year 5 (including year 5) What is the NPV of this project? (Assume a 10% discount rate.) OA -$25.01M B,-$20.00M C. $20.00M D. s25.01M
Project X costs $1,000, its expected cash inflows are $500 per year for 3 years, and...
Project X costs $1,000, its expected cash inflows are $500 per year for 3 years, and its WACC is 10%. What is the project’s NPV? Show calculation. Would you accept the project?
1. A proposed project has an initial cost of $69,500 and is expected to produce cash...
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...
A project has expected cash inflows, starting with Year 1, of $900, $1,200, $1,500, and finally...
A project has expected cash inflows, starting with Year 1, of $900, $1,200, $1,500, and finally in Year 4, $2,000. The profitability index is 1.11 and the discount rate is 12 percent. What is the initial cost of the project? $4,098.24 $3,692.71 $3,211.06 $4,250.00 $3,899.16
A project has expected cash inflows, starting with year 1, of $2,200, $2,900, $3,500 and finally...
A project has expected cash inflows, starting with year 1, of $2,200, $2,900, $3,500 and finally in year four, $4,000. The profitability index is 1.14 and the discount rate is 12 percent. What is the initial cost of the project?
You are considering undertaking a project that has beta of 1.2, an initial cost of $100...
You are considering undertaking a project that has beta of 1.2, an initial cost of $100 million and annual after-tax inflows of $10 million for 20 years starting at the beginning of next year. The risk-free rate is 2% and the market is expected to yield 5% over the next year. a) Assuming that the CAPM holds, what is the appropriate discount rate for this project? b) What is the NPV of the project? c) What is the IRR of...
A project is expected to produce equal annual cash flows of $20000 a year for six...
A project is expected to produce equal annual cash flows of $20000 a year for six years after the initial investment. If the required rate of return is 7%, at what maximum investment level will the project add value to the firm? A. 81,031 B.112,150 C. 95,331 D.128,400
A project is expected to produce a cash flow of $7800 next year. This is expected...
A project is expected to produce a cash flow of $7800 next year. This is expected to grow at a rate of 17% for the following four years before slowing down to an estimated eternal growth rate of 5% a year. If you require a 12% return on this project, what is the maximum amount you should be willing to invest in it? Round your answer to the nearest dollar. A. $150429 B. $177382 C. $162478 D. $219245
24. If a project has: year 0 -500 year 1- $200 year 2 for this project is: a) 2 years b) 2.5 years c)3 years d) 3.5 years $200 and year 3- $200, then the payback period 25. A project has an initial cost of -10,000. Cash flows of 3,000 will be generated for the next 7 years. If required return is 10%; what is the NPV of this project a) $4,605 b) $8,605 c) $10,605 d) $14,605
24. If...
There is a 5-year project that is expected to generate $32 million of cash revenue per year for the first 3 years and then S10 million per year for the next 2 years. The upfront cost to start the project is $90 million, and then it will cost $5 million per year to maintain this project. At the end of the project, the used fixed and working capital, which will be fully depreciated to 0 on the book, can be...
Project ABC has a cost of $80M two years from now, and will generate a cash flow stream that pays $20M every year starting from year 3 until year 5 (including year 5) What is the NPV of this project? (Assume a 10% discount rate.) OA -$25.01M B,-$20.00M C. $20.00M D. s25.01M
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