What is the NPV of a project which reauires an initial investment od $100,000, generates cash...
Homework Answers
Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)
=25000/1.12+50,000/1.12^2+75000/1.12^3+100,000/1.12^4
=$179116.45
Present value of outflows=100,000+50,000/1.12^5
=128371.34
NPV=Present value of inflows-Present value of outflows
=179116.45-128371.34
=$50745(Approx).
Add Answer to:
What is the NPV of a project which reauires an initial investment
od $100,000, generates cash...
What is the NPV of a project that requires a $100,000 investment at inception and generates...
What is the NPV of a project that requires a $100,000 investment at inception and generates $50,000 a year for years 1 through 3? Assume a required rate of return of 10%. A. $24,343 B. $50,000 C. $22,130 D. $37,565
What is the NPV of a project that has an initial investment of $100,000, and expected...
What is the NPV of a project that has an initial investment of $100,000, and expected cash flows of $45,000 each year for years 1 through 3? Use an 8% hurdle (aka discount) rate. Is this a project you should accept or reject? Calculate the Profitability Index for the project as well.
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?
A project requires, as its only cost, an initial investment of $17,000. It then generates positive future cash flows. Th...
A project requires, as its only cost, an initial investment of
$17,000. It then generates positive future cash flows. The
appropriate discount rate is 22%. This project has an NPV of -$935
(negative NPV). What can you say about this project’s IRR?
A project requires, as its only cost, an initial investment of $17,000. It then generates positive future cash flows. The appropriate discount rate is 22%. This project has an NPV of -$935 (negative NPV). What can you say...
What is the NPV for a 3 year project with an initial investment of $100,000, an...
What is the NPV for a 3 year project with an initial investment of $100,000, an opportunity cost of capital of 6% and the following cash flows? Yr. 1 - $35,000 Yr. 2 - $40,000 Yr. 3 - $45,000
Project Ell requires an initial investment of $50,000 and the produces annual cash flows of $30,000,...
Project Ell requires an initial investment of $50,000 and the produces annual cash flows of $30,000, $25,000, and $15,000. Project Ess requires an initial investment of $60,000 and then produces annual cash flows of $25,000 per year for the next ten years. The company ranks projects by their payback periods.
Your company is considering a project with the following cash flows: an immediate investment of $100,000...
Your company is considering a project with the following cash flows: an immediate investment of $100,000 and cash inflows of $25,000 for 5 years (starting in year 1). If your discount rate for this project is 6%, what is the project's NPV? $205,309 $25,000 $5,309 $105,309
What is the internal rate of return for a project that requires an initial investment of...
What is the internal rate of return for a project that requires an initial investment of $85,317 and then generates cash flows of $20,507 per year for 7 years? Round to the nearest whole %.
A project has an initial investment at time zero of 30. It generates cash ows in...
A project has an initial investment at time zero of 30. It generates cash ows in perpetuity of 3 a year. 1- What is the payback period of this project? 2- What is the NPV if the discount rate is equal to theAccounting Rate of Return?
A potential project requires an initial investment of $75,000 at the beginning of the 1st year,...
A potential project requires an initial investment of $75,000 at the beginning of the 1st year, and will give a net cash inflow of $25,000 per year (realized at the end of the 1st, 2nd and 3rd year respectively) for three years. The required rate of return is 15%. What is the Net Present Value? NPV = Ao + Sum from t=0 to t=n of Ft /(1+R)t
A project requires, as its only cost, an initial investment of
$17,000. It then generates positive future cash flows. The
appropriate discount rate is 22%. This project has an NPV of -$935
(negative NPV). What can you say about this project’s IRR?
A project requires, as its only cost, an initial investment of $17,000. It then generates positive future cash flows. The appropriate discount rate is 22%. This project has an NPV of -$935 (negative NPV). What can you say...
Most questions answered within 3 hours.
-
Let X be a continuous random variable whose PDF is Let X be a
continuous random...
asked 9 minutes ago -
Martinez Company’s relevant range of production is 7,500 units
to 12,500 units. When it produces and...
asked 7 minutes ago -
A football with a mass of 1.2 kg is kicked from ground level to
a height...
asked 13 minutes ago -
Remember: Changes in supply determinants shift supply, and
changes in demand determinants shift demand. We say...
asked 11 minutes ago -
Why is the answer b), for this question? I came up with C) for
my incorrect...
asked 17 minutes ago -
Suppose that you know that in the population of full-time
employees in the United States, the...
asked 39 minutes ago -
This experiment was designed originally to sample various meat and carcass quality
aspects of Ontario pigs...
asked 40 minutes ago -
Dopamine Hydrochloride: draw the structure And Show the
functional groups in different colors and label the...
asked 32 minutes ago -
A rope supports a 10 kg dumbbell hanging from it. What is the
tension in the...
asked 31 minutes ago -
) Raw materials are studied for contamination. Suppose that
the number of particles of contamination per...
asked 54 minutes ago -
After running a regression analysis we calculated an F test and
the significance level was 0.15....
asked 50 minutes ago -
----Can someone please help me solve this one using JAVA
----I thank you in advance
Create...
asked 54 minutes ago