NPV = PV of cash Inflows - PV of Cash Outflows
Year | CF | PVF @0% | Disc CF |
0 | $ -2,70,000.00 | 1.0000 | $ -2,70,000.00 |
1 | $ 49,000.00 | 1.0000 | $ 49,000.00 |
2 | $ 80,000.00 | 1.0000 | $ 80,000.00 |
3 | $ 1,10,000.00 | 1.0000 | $ 1,10,000.00 |
4 | $ 1,36,000.00 | 1.0000 | $ 1,36,000.00 |
NPV | $ 1,05,000.00 |
NPV @ 0% Disc Rate is $ 105,000
NPV profile of a project. Given the following cash flow of Project L-2, draw the NPV profile. Hint: Be sure to use a di...
NPV profile of a project. Given the following cash flow of Project L-2, draw the NPV profile. Hint: Be sure to use a discount rate of zero for one intercept (y-axis) and solve for the IRR for the other intercept (x-axis). (Click on the following icon in order to copy its contents into a spreadsheet.) Year 0 = - $290,000 Year 1 = $44,000 Year 2 = $75,000 Year 3 = $116,000 Year 4 = $140.000 What is the NPV...
is). NPV profile of a project. Given the following cash flow of Project L-2 draw the NPV profile. Hint. Be sure to use a discount rate of zero for one interceptaxis) and solve for the IRR for the other intercept (Click on the following on in order to copy its contents into a spreadsheet) Year 0 -$300.000 Year 1 $43,000 Year 2 - $75.000 Year $110,000 Year 4 $135.000 What is the NPV of Project L-2 where zero is the...
NPV profile of a project Given the following cash flow of Project L-2, draw the NPV profile. Hint Be sure to use a discount rate of zero for one intercept (y-axis) and solve for the IRR for the other intercept (x-axis). Year 0-$260,000 Year 1 $45,000 Year 2 $80,000 Year 3 $119,000 Year 4 $132,000 What is the NPV of Project L-2 where zero is the discount rate? $116,000 Round to the nearest dollar.) What is the IRR of Project...
NPV profile of a project. Given the following cash flow of Project L-2, draw the NPV profile. Hint: Be sure to use a discount rate of zero for one intercept (y-axis) and solve for the IRR for the other intercept (x-axis). Year 0 = -$240,000 Year 1 = $ 40,000 Year 2 = $ 79,000 Year 3 = $ 118,000 Year 4 = $ 131,000 What is the NPV of Project L-2 where zero is the discount rate?
(NPV calculation) Calculate the NPV given the following cash flows, __, if the appropriate required rate of return is 8 percent. Should the project be accepted? What is the project's NPV? $ (Round to the nearest cent.) YEAR CASH FLOWS 0 −$90,000 1 30,000 2 30,000 3 25,000 4 25,000 5 10,000 6 10,000 (Click on the icon located on the top-right corner of the data table above in order to copy its contents into a spreadsheet.) PrintDone
All techniques with NPV profile Mutually exclusive projects Projects A and B, of equal risk, are alteratives for expanding Rosa Company's capacity. The firm's cost of capital is 11%. The cash flows for each project are shown in the following table: a. Calculate each project's payback period. b. Calculate the nel present value (NPV) for each project. c. Calculate the internal rate of retum (IRR) for each project. d. Indicate which project you would recommend. a. The payback period of...
Profitability index. Given the discount rate and the future cash flow of each project listed in the following table, , use the Pl to determine which projects the company should accept. What is the Pl of project A? Data Table (Round to two decimal places.) (Click on the following icon in order to copy its contents into a spreadsheet.) Cash Flow Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Discount rate Project A - $2,200,000 $700,000...
Comparing all methods. Risky Business is looking at a project with the following estimated cash flow: 5. Risky Business wants to know the payback period, NPV, IRR, MIRR, and Pl of this project. The appropriate discount rate for the project is 9%. If the cutoff period is 6 years for major projects, determine whether the management at Risky Business will accept or reject the project under the five different decision models. What is the payback period for the new project...
Internal rate of return For the project shown in the following table. B. calculate the internal rate of return (IRR). Then indicate, for the project, the maximum cost of capital that the first could have and still find the IRR acceptable. The project's IRR is %. (Round to two decimal places.) i Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Initial Investment (CF)...
Using these data, graph, on the same set of axes, the NPV profiles for each Cooper Electronics uses NPV profiles to visually evaluate competing projects. Key data for the two projects under consideration are given in the following table: project using discount rates of 0%, 8%, and the IRR. The IRR of project Terra is 18.64 %. (Round to two decimal places.) The IRR of project Firma is [%. (Round to two decimal places.) Х i Data Table (Click on...