A firm evaluates all of its projects by using the NPV decision rule.
Year Cash Flow
0 –$27,000
1 22,000
2 14,000
3 7,000
a. At a required return of 28 percent, what is the NPV for this project?
b. At a required return of 39 percent, what is the NPV for this project?
a.Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)
=22,000/1.28+14,000/1.28^2+7,000/1.28^3
=29070.28
NPV=Present value of inflows-Present value of outflows
=29070.28-27,000
=$2070.28(Approx).
b.Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)
=22,000/1.39+14,000/1.39^2+7,000/1.39^3
=25679.82
NPV=Present value of inflows-Present value of outflows
=25679.82-27,000
=$(1320.18)(Approx).(Negative).
A firm evaluates all of its projects by using the NPV decision rule. Year Cash Flow 0 –$27,000 1 22,000 2 14,000 3 7,000...
A firm evaluates all of its projects by using the NPV decision rule. Year Cash Flow 0 –$27,000 1 19,000 2 17,000 3 8,000 a. At a required return of 12 percent, what is the NPV for this project? b. At a required return of 39 percent, what is the NPV for this project?
A firm evaluates all of its projects using the NPV decision rule year cash flow 0 -27,000 1 18,000 2 16,000 3 11,000 at a required return of 13 percent, what is the NPV for this project? at a required return of 37 percent, what is the NPV for this project?
A firm evaluates all of its projects by using the NPV decision rule. Year Cash Flow 0 –$25,000 1 19,000 2 13,000 3 8,000 a. At a required return of 30 percent, what is the NPV for this project? b. At a required return of 39 percent, what is the NPV for this project?
A firm evaluates all of its projects by using the NPV decision rule. Year Cash Flow 0 –$30,000 1 21,000 2 15,000 3 10,000 a. At a required return of 23 percent, what is the NPV for this project? b. At a required return of 39 percent, what is the NPV for this project?
A firm evaluates all of its projects by using the NPV decision rule. Year 0 WNO Cash Flow -$29,000 22,000 16,000 10,000 a. At a required return of 18 percent, what is the NPV for this project? $ 7,221" 7,582 $ 6,932 $ 7,366 $ 7,077 b. At a required return of 39 percent, what is the NPV for this project? CA $-1,226.38 $-1,121.26 $-1,191.34 $-1,144.62 $-1,167.98
A firm evaluates all of its projects by using the NPV decision rule. Year WNO Cash Flow -$30,000 19,000 14,000 10,000 Required: (a)At a required return of 23 percent, what is the NPV for this project? rn of 41 percent, what is the NPV for this project? (Click to select) (Click to select) 71.75 74.74 73.25 76.24 78.48 A firm evaluates all of its projects by using the NPV decision rule. Yea Cash Flow --$30,000 19,000 14,000 10,000 1 Required:...
A firm evaluates all of its projects by using the NPV decision rule. Year Cash Flow 0 –$27,000 1 21,000 2 16,000 3 6,000 Required: (a) At a required return of 12 percent, what is the NPV for this project? (Click to select) 8,775.78 9,214.57 8,424.75 8,951.3 8,600.27 (b) At a required return of 40 percent, what is the NPV for this project? (Click to select) -1,617.14 -1,683.15 -1,650.15 -1,732.65 -1,584.14
A firm evaluates all of its projects by using the NPV decision rule. Year Cash Flow 0 –$26,000 1 24,000 2 13,000 3 9,000 a. At a required return of 22 percent, what is the NPV for this project? b. At a required return of 35 percent, what is the NPV for this project?
A firm evaluates all of its projects by using the NPV decision rule. Year Cash Flow 0 –$29,000 1 21,000 2 15,000 3 4,000 a. At a required return of 17 percent, what is the NPV for this project? b. At a required return of 33 percent, what is the NPV for this project?
A firm evaluates all of its projects by using the NPV decision rule. Year Cash Flow -$29,000 20,000 16,000 6,000 1 2 a. At a required return of 19 percent, what is the NPV for this project? b. At a required return of 36 percent, what is the NPV for this project?