A company has a project available with the following cash flows: year cash flow 0 -$32,630 1 $12,990 2 $14,74...

Question

Question

A company has a project available with the following cash flows:

If the required return for the project is 9.3 percent, what is the projects NPV?

Answer 1

Answer #1

Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)

=12,990/1.093+14,740/1.093^2+20,640/1.093^3+11,840/1.093^4

=48326.11

NPV=Present value of inflows-Present value of outflows

=48326.11-32,630

=$15696.11(Approx).

Add a comment

Answer 2

Answer #2

Your company has a project available with the following cash flows:

If the required return is 12 percent, should the project be accepted based on the IRR?

answered by: özde

Answer 3

Similar Homework Help Questions

A company. has a project available with the following cash flows: Year Cash Flow -$32,150 13.050...

A company. has a project available with the following cash flows: Year Cash Flow -$32,150 13.050 14,740 20,780 11,960 AWN- If the required return for the project is 9.5 percent, what is the project's NPV?!
Living Colour Co. has a project available with the following cash flows: Year Cash Flow 0...

Living Colour Co. has a project available with the following cash flows: Year Cash Flow 0 −$35,070 1 7,970 2 9,570 3 13,560 4 15,610 5 10,340 If the required return for the project is 7.9 percent, what is the project's NPV?
Living Colour Co. has a project available with the following cash flows: Year Cash Flow 0...

Living Colour Co. has a project available with the following cash flows: Year Cash Flow 0 −$31,870 1 8,570 2 10,370 3 14,960 4 16,410 5 11,540 If the required return for the project is 9.9 percent, what is the project's NPV?

Living Colour Co. has a project available with the following cash flows: 0 - $32,830 1...

Living Colour Co. has a project available with the following cash flows: 0 - $32,830 1 8,390 2 10,130 3 14,540 4 16,170 5 11,180 If required return for the project is 9.3 percent, what is the project's NPV?
Bruin, Inc., has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash...

Bruin, Inc., has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$36,600 –$36,600 1 18,930 6,490 2 14,430 12,990 3 11,930 19,490 4 8,930 23,490 a. What is the IRR for Project A? b. What is the IRR for Project B? c. If the required return is 14 percent, what is the NPV for Project A? d. If...
A project has the following cash flows: year. Cash flow 0. $71,000 1. -50,000. 2. -29,200...

A project has the following cash flows: year. Cash flow 0. $71,000 1. -50,000. 2. -29,200 a. What is the IRR for the project? (Do not round intermediate calculations and enter answer as a percent round to 2 decimal places) b. What is the NPV of this project if the required return is 6 percent? c. What is the NPV of the project if the required return is 0 percent? d. What is the NPV of the project if the...

Your company has a project available with the following cash flows: Year. Cash Flow 0. $80,200...

Your company has a project available with the following cash flows: Year. Cash Flow 0. $80,200 1 21,950 2. 25,900 3. 31,700 4. 26,450 5. 20,700 If the required return is 16 percent, should the project be accepted based on the IRR? A. No, because the IRR is 17.75 Percent B. Yes, because the IRR is 18.90 Percent C. No, because the IRR is 18.90 Percent D. Yes, because the IRR is 17.45 Percent E. Yes, because the IRR is...
Carland, Inc., has a project available with the following cash flows. If the required return for...

Carland, Inc., has a project available with the following cash flows. If the required return for the project is 9.6 percent, what is the project's NPV? Year Cash Flow 0 −$275,000 1 86,700 2 109,100 3 126,300 4 77,700 5 −13,700
Carland, Inc., has a project available with the following cash flows. If the required return for...

Carland, Inc., has a project available with the following cash flows. If the required return for the project is 8.2 percent, what is the project's NPV? Year Cash Flow 0 −$261,000 1 69,900 2 93,700 3 119,300 4 72,100 5 −12,300

A project has the following cash flows: Year Cash Flow 0 $64,200 1 –30,200...

A project has the following cash flows: Year Cash Flow 0 $64,200 1 –30,200 2 –48,200 Required: (a) What is the IRR for this project? (Click to select)13.97%12.77%13.3%13.03%13.57% (b) What is the NPV of this project, if the required return is 11 percent? (Click to select)$-2,169.96$-2,042.31$2,127.41$-2,127.41$-2,233.78 (c) NPV at 0 percent? (Click to select)$-14,910.00$-14,200.00$-14,484.00$14,200.00$-13,632.00 (d) NPV at 22 percent? (Click to select)$7,203.38$-7,062.13$6,779.65$7,062.13$7,415.24