Dowlings Sportswear is considering building a new factory to produce aluminum baseball bats. This project would require an initial cash outlay of $6,000,000 and would generate annual net flows of $1,200,000 per year for 9 years. Calculate the project's NPV using a discount rate of 3
5 percent.
If the discount rate is 5 percent, then the project's NPV is $
If discount rate is 3%, NPV is
Particulars | Amount (in$) |
Initial cashflow | 6000000 |
Operating cashflow | |
Revenue | 1200000 |
*present value factor@ 3% for 9 years | 7.79 |
present value | 9348000 |
NPV (outflow-inflow) | 3348000 |
If discount rate is 5%, NPV is
Particulars | Amount (in$) |
Initial cashflow | 6000000 |
Operating cashflow | |
Revenue | 1200000 |
*present value factor@ 5% for 9 years | 7.11 |
present value | 8532000 |
NPV (outflow-inflow) | 2532000 |
Dowlings Sportswear is considering building a new factory to produce aluminum baseball bats. This project would...
Dowling Sportswear is considering building a new factory to produce aluminum baseball bats. This project would require an initial cash outlay of $5 comma 000 comma 0005,000,000 and would generate annual net cash inflows of $1 comma 000 comma 0001,000,000 per year for 88 years. Calculate the project's NPV using a discount rate of 99 percent.
(Related to Checkpoint 11.1) (Net present value calculation) Dowling Sportswear is considering building a new factory to produce aluminum baseball bats. This project would require an initial cash outlay of $5,500,000 and would generate annual net cash inflows of $900,000 per year for 6 years. Calculate the project's NPV using a discount rate of 5 percent. If the discount rate is 5 percent, then the project's NPV is $_______ (Round to the nearest dollar)
(Related to Checkpoint 11.1) (Net present value calculation) Dowling Sportswear is considering building a new factory to produce aluminum baseball bats. This project would require an initial cash outlay of $4,000,000 and would generate annual net cash inflows of $900,000 per year for 7 years. Calculate the project's NPV using a discount rate of 5 percent. If the discount rate is 5 percent, then the project's NPV is _______ $ . (Round to the nearest dollar.)
(Net present value calculation) Dowling Sportswear is considering building a new factory to produce aluminum baseball bats. This project would require an initial cash outlay of $4,000,000 and would generate annual net cash inflows of $900,000 per year for 9 years. Calculate the project's NPV using a discount rate of 8 percent. If the discount rate is 8 percent, then the project's NPV is $ _______ (Round to the nearest dollar.)
(Related to Checkpoint 11.1) (Net present value calculation) Dowling Sportswear is considering building a new factory to produce aluminum baseball bats. This project would require an initial cash outlay of $5,000,000 and would generato annual net cash inflows of $1,000,000 per year for 8 years Calculate the project's NPV using a discount rate of 9 percent. If the discount rate is 9 percent, then the project's NPV is _______ (Round to the nearest dollar)(Net present value calculation) Carson Trucking is considering...
(NPV with varying required rates of return) Gubanich Sportswear is considering building a new factory to produce aluminum baseball bats. This project would require an initial cash outlay of $6,000,000 and would generate annual free cash inflows of $1,200,000 per year for 8 years. Calculate the project's NPV given: a. A required rate of return of 8 percent b. A required rate of return of 12 percent c. A required rate of return of 13 percent d. A required rate...
(NPV with varying required rates of return) Gubanich Sportswear is considering building a new factory to produce aluminum baseball bats. This project would require an initial cash outlay of $4,000,000 and would generate annual free cash inflows of $1,200,000 per year for 7 years. Calculate the project's NPV given: a. A required rate of return of 9 percent b. A required rate of return of 11 percent c. A required rate of return of 13 percent d. A required rate...
(NPV with varying required rates of return) Gubanich Sportswear is considering building a new factory to produce aluminum baseball bats. This project would require an initial cash outlay of $5,000,000 and would generate annual free cash inflows of $1,100,000 per year for 8 years. Calculate the project's NPV given: a. A required rate of return of 7 percent b. A required rate of return of 11 percent c. A required rate of return of 13 percent d. A required rate...
Dowling Sportswear is considering building a new factory to produce aluminum baseball bats. This project would require an initial cash outlay of $5,500,000 and would generate annual net cash inflows of $1,100,000 per year for 9 years. Calculate the project's NPV using a discount rate of 5 percent.If the discount rate is 5 percent, then the project's NPV is $nothing
Net present value calculation) Dowling Sportswear is considering building a new factory to produce aluminum baseball bats. This project would require an initial cash outlay of $5,500,000 and would generate annual net cash inflows of $1,200,000 per year for 7 years. Calculate the project's NPV using a discount rate of 5%