Year | Cash Inflow | Discount Factor | Present Value |
a | b | c=1.07^-a | d=b*c |
0 | $ -56,589 | 1.0000 | $ -56,589.00 |
1 | $ 11,473 | 0.9346 | $ 10,722.43 |
2 | $ 13,222 | 0.8734 | $ 11,548.61 |
3 | $ 15,861 | 0.8163 | $ 12,947.30 |
4 | $ 10,720 | 0.7629 | $ 8,178.24 |
NPV | $ -13,192.43 |
Your firm is considering a project that costs $56,589. This opportunity will provide cash flows of...
Your firm is considering a project that costs $64,988. This opportunity will provide cash flows of $14,511, $26,263, $15,280, and $28,209 over the next four years. Your firm has a required rate of return of 17%. What is the project's npv?
Your firm is considering a project that costs $85,105. This opportunity will provide cash flows of $22,311, $10,601, $24,904, and $22,165 over the next four years. Your firm has a required rate of return of 14%. What is the project's profitability index?
Your firm is considering a project that costs $93,996. This opportunity will provide cash flows of $33,164, $18,441, $11,841, and $30,152 over the next four years. Your firm has a required rate of return of 11%. What is the project's profitability index?
A project that costs $3,200 to Install will provide annual cash flows of $820 for each of the next 7 years. a. Calculate the NPV if the opportunity cost of capital is 12%? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) NPV $ b. Is this project worth pursuing? Yes NO c. What is the project's Internal rate of return IRR? (Do not round Intermediate calculations. Round your answer to 2 decimal places.)
A project that costs $3,100 to install will provide annual cash flows of $810 for each of the next 6 years. a. Calculate the NPV if the opportunity cost of capital is 11%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) NPV $ b. Is this project worth pursuing? Yes No c. What is the project's internal rate of return IRR? (Do not round intermediate calculations. Round your answer to 2 decimal places.) IRR %
A project that costs $2,800 to Install will provide annual cash flows of $780 for each of the next 6 years. a Calculate the NPV If the opportunity cost of capital is 10%? (Do not round Intermediate calculations. Round your answer to 2. decimal places.) NPV b. Is this project worth pursuing? Yes No c. What is the project's Internal rate of return IRR? (Do not round Intermediate calculations. Round your answer to 2 decimal places.)
You are considering a project that costs $300 and has expected cash flows of $110, $121, and $133.10 over the next three years. If the appropriate discount rate for the project's cash flows is 10%, what is the net present value of this project?
Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 7 percent, and that the maximum allowable payback and discounted payback statistics for the project are 2.0 and 3.0 years, respectively. Time: 0 1 2 3 4 5 6 Cash flow: –$7,400 $1,170 $2,370 $1,570 $1,570 $1,370 $1,170 Use the NPV decision rule to evaluate this project. (round your final answer to...
Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 7 percent, and that the maximum allowable payback and discounted payback statistics for the project are 2.0 and 3.0 years, respectively. Time: 0 1 2 3 4 5 6 Cash flow: –$7,400 $1,170 $2,370 $1,570 $1,570 $1,370 $1,170 NPV=____? (round your final answer to 2 decimal places.)
A project is expected to provide cash flows of $11,700, $12,300, $15,400, and $9,900 over the next four years, respectively. At a required return of 8.2 percent, the project has a profitability index of .713. For this to be true, what is the project's cost at Time 0?