Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate
=11000[1-(1.1)^-7]/0.1
=11000*4.86841882
=$53552.61
NPV=Present value of inflows-Present value of outflows
=53552.61-50,000
=$3552.61(Approx).
Click here to read the eBook: Net Present Value (NPV) NPV Project L costs $50,000, its...
1. Problem 11.01 Click here to read the eBook: Net Present Value (NPV) NPV Project L costs $50,000, its expected cash inflows are $12,000 per year for 9 years, and its WACC is 11%. What is the project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations.
Click here to read the eBook: Net Present Value (NPV) Click here to read the eBook: Internal Rate of Return (IRR) NPV A project has annual cash flows of $5,000 for the next 10 years and then $8,500 each year for the following 10 years. The IRR of this 20-year project is 10.31%. If the firm's WACC is 9%, what is the project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations.
Attempts: Keep the Highest: /1 1. Problem 11.01 Click here to read the eBook: Net Present Value (NPV) NPV Project L costs $35,000, its expected cash inflows are $15,000 per year for 10 years, and its WACC is 14%. What is the project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations. Grade It Now Save & Continue Continue without saving
Back to Assignment Keep the Highest: 0/1 Attempts: 0 0 1. Problem 11.01 Click here to read the eBook: Net Present Value (NPV) NPV Project L costs $50,000, its expected cash inflows are $12,000 per year for 9 years, and its WACC is 13%. What is the project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations.
7. Problem 11.07 Click here to read the eBook: Net Present Value (NPV) Click here to read the eBook: Internal Rate of Return (IRR) Click here to read the eBook: Modified Internal Rate of Return (MIRR) Click here to read the eBook: Payback Period CAPITAL BUDGETING CRITERIA A firm with a 13% WACC is evaluating two projects for this year's capital budget. After-tax cash flows, including depreciation, are as follows: 1 2 3 4 5 Project M Project N -$3,000...
Click here to read the eBook: Payback Period PAYBACK PERIOD Project L costs $40,000, its expected cash inflows are $9,000 per year for 7 years, and its WACC is 10%. What is the project's payback? Round your answer to two decimal places. years
Click here to read the eBook: Internal Rate of Return (IRR) IRR Project L costs $39,183.66, its expected cash inflows are $9,000 per year for 9 years, and its WACC is 11%. What is the project's IRR? Round your answer to two decimal places.
11-2: Net Present Value (NPV) NPV Project K costs $40,000, its expected cash inflows are $10,000 per year for 10 years, and its WACC is 11%, what is the project's NPV? Round your answer to the nearest cent.
Project L requires an initial outlay at t = 0 of $50,000, its expected cash inflows are $11,000 per year for 9 years, and its WACC is 10%. What is the project's NPV? Do not round intermediate calculations. Round your answer to the nearest cent. $ ?
NPV Project L costs $35,000, its expected cash inflows are $13,000 per year for 10 years, and its WACC is 12%. What is the project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations.