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A project has a forecasted cash flow of $114 in year 1 and $125 in year...
A project has a forecasted cash flow of $119 in year 1 and $130 in year...
A project has a forecasted cash flow of $119 in year 1 and $130 in year 2. The interest rate is 6%, the estimated risk premium on the market is 12.25%, and the project has a beta of 0.59. If you use a constant risk-adjusted discount rate, answer the following: a. What is the PV of the project? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value b. What is the certainty-equivalent cash flow in...
A project has a forecasted cashflow of $116 in year 1 and $127 in year 2....
A project has a forecasted cashflow of $116 in year 1 and $127 in year 2. The interest rate is 7%, the estimated risk premium on the market is 11.5%, and the project has a beta of .56. If you use a constant risk-adjusted discount rate, what is: a. The PV of the project? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value$ b. The certainty-equivalent cash flow in year 1 and year 27 (Do...
A project has the following forecasted cash flows: Cash Flows ($ thousands) C1 С2 Се Сз...
A project has the following forecasted cash flows: Cash Flows ($ thousands) C1 С2 Се Сз -145 +95 +85 +105 The estimated project beta is 1.59. The market return rm is 17%, and the risk-free rate rf is 4%. a. Estimate the opportunity cost of capital and the project's PV (using the same rate to discount each cash flow). (Do not round intermediate calculations. Enter your cost of capital answer as a percent and enter your PV answer in thousands....
a. Estimate the opportunity cost of capital and the project’s PV (using the same rate to...
a. Estimate the opportunity cost of capital and
the project’s PV (using the same rate to discount each cash flow).
(Do not round intermediate calculations. Enter your cost of
capital answer as a percent and enter your PV answer in thousands.
Round your answers to 2 decimal places.)
b. What are the certainty-equivalent cash flows
in each year? (Do not round intermediate calculations.
Enter your answers in thousands rounded to 2 decimal
places.)
c. What is the ratio of the...
A project has the following forecasted cash flows: Cash flows C0 C1 C2 C3 (100) 40...
A project has the following forecasted cash flows: Cash flows C0 C1 C2 C3 (100) 40 60 50 The estimated project beta is 1.5. The market return r m is 16%, and the risk-free rate r f is 7%. a. Estimate the opportunity cost of capital and the project’s PV (using the same rate to discount each cash flow). b. What are the certainty-equivalent cash flows in each year? c. What is the ratio of the certainty-equivalent cash flow to...
A project has the following forecasted cash flows: Cash flows C0 C1 C2 C3 (100) 40 ...
A project has the following forecasted cash flows: Cash flows C0 C1 C2 C3 (100) 40 60 50 The estimated project beta is 1.5. The market return r m is 16%, and the risk-free rate r f is 7%. a. Estimate the opportunity cost of capital and the project’s PV (using the same rate to discount each cash flow). b. What are the certainty-equivalent cash flows in each year? c. What is the ratio of the certainty-equivalent cash flow to...
Huggins Co. has identified an investment project with the following cash flows. YEAR Cash Flow 1...
Huggins Co. has identified an investment project with the following cash flows. YEAR Cash Flow 1 $740 2 $970 3 $1230 4 $1325 If the discount rate is 9 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value $ What is the present value at 18 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)...
Wilkinson Co. has identified an investment project with the following cash flows: Year Cash Flow...
Wilkinson Co. has identified an investment project with the following cash flows: Year Cash Flow 1 $ 730 2 950 3 1,210 4 1,300 If the discount rate is 8 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value $ If the discount rate is 18 percent, what is the present value of these cash flows? (Do not round...
A project has the following cash flows: Year Cash Flow $112,000 – 67,000 - 57,000 1...
A project has the following cash flows: Year Cash Flow $112,000 – 67,000 - 57,000 1 N- a. What is the IRR for this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the NPV of this project if the required return is 10 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the NPV of...
Fuente, Inc., has identified an investment project with the following cash flows. Year AWN Cash Flow...
Fuente, Inc., has identified an investment project with the following cash flows. Year AWN Cash Flow $ 1,075 1,210 1,340 1,420 a. If the discount rate is 8 percent, what is the future value of the cash flows in Year 4? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. If the discount rate is 11 percent, what is the future value of the cash flows in Year 4? (Do not round intermediate...
A project has a forecasted cash flow of $119 in year 1 and $130 in year 2. The interest rate is 6%, the estimated risk premium on the market is 12.25%, and the project has a beta of 0.59. If you use a constant risk-adjusted discount rate, answer the following: a. What is the PV of the project? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value b. What is the certainty-equivalent cash flow in...
A project has a forecasted cashflow of $116 in year 1 and $127 in year 2. The interest rate is 7%, the estimated risk premium on the market is 11.5%, and the project has a beta of .56. If you use a constant risk-adjusted discount rate, what is: a. The PV of the project? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value$ b. The certainty-equivalent cash flow in year 1 and year 27 (Do...
A project has the following forecasted cash flows: Cash Flows ($ thousands) C1 С2 Се Сз -145 +95 +85 +105 The estimated project beta is 1.59. The market return rm is 17%, and the risk-free rate rf is 4%. a. Estimate the opportunity cost of capital and the project's PV (using the same rate to discount each cash flow). (Do not round intermediate calculations. Enter your cost of capital answer as a percent and enter your PV answer in thousands....
a. Estimate the opportunity cost of capital and
the project’s PV (using the same rate to discount each cash flow).
(Do not round intermediate calculations. Enter your cost of
capital answer as a percent and enter your PV answer in thousands.
Round your answers to 2 decimal places.)
b. What are the certainty-equivalent cash flows
in each year? (Do not round intermediate calculations.
Enter your answers in thousands rounded to 2 decimal
places.)
c. What is the ratio of the...
A project has the following cash flows: Year Cash Flow $112,000 – 67,000 - 57,000 1 N- a. What is the IRR for this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the NPV of this project if the required return is 10 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the NPV of...
Fuente, Inc., has identified an investment project with the following cash flows. Year AWN Cash Flow $ 1,075 1,210 1,340 1,420 a. If the discount rate is 8 percent, what is the future value of the cash flows in Year 4? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. If the discount rate is 11 percent, what is the future value of the cash flows in Year 4? (Do not round intermediate...
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