4 points Save Ans comes closest to the net present value of a project that requires...
Which of the following values comes closest to the net present value of a project that requires an initial investment of $250 and produces cash flows of $60 per year for 10 consecutive years beginning at the end of year 5 (the cash flows go from the end of year 5 through the end of year 14)? The required rate of return is 13%? a. $1.81 b. ($17.23) c. ($64.70) d. ($34.55) e. ($50.32)
Which of the following values comes closest to the net present value of a project that requires an initial investment of $250 and produces cash flows of $60 per year for 10 consecutive years beginning at the end of year 5 (the cash flows go from the end of year 5 through the end of year 14)? The required rate of return is 13%? O a. ($17.23) b. $1.81 c. ($64.70) O d. ($50.32) e. ($34.55)
Which of the following values comes closest to the net present value of a project that requires an initial investment of $250 and produces cash flows of $60 per year for 10 consecutive years beginning at the end of year 5 (the cash flows go from the end of year 5 through the end of year 14)? The required rate of return is 12%? a. $1.81 O b.($17.23) c. ($34.55) O d. ($50.32) e. ($64.70)
Which of the following comes closest to the net present value (NPV) of a project whose initial investment is $5 and which produces two cash flows: the first at the end of year 2 of $3 and the second at the end of year 4 of $7? The required rate of return is 12%? O a. $1.64 b. $1.84 oc. $0 od. $2.05 e. $2.26
Which of the following comes closest to the profitability index (PI) of a project that requires an initial investment of $100 and produces a single cash flow of $160 at the end of year 10if the required rate of return is 11%? a. 0.52 b. 0.47 ︵ c, 0.62 O d. 0.43 e. 0.56
Which of the following comes closest to the profitability index (Pl) of a project that requires an initial investment of $100 and produces a single cash flow of $160 at the end of year 10 if the required rate of return is 11%? a. 0.56 ob. 0.43 O c. 0.62 O d. 0.47 e. 0.52
Which of the following comes closest to the internal rate of return (IRR) of a project that requires an initial investment of $100 and produces a single cash flow of $160 at the end of year 11? The required rate of return for the project is 13%. a. 5.36% b. 4.81 % C. 3.99% d. 4.37% e. 6.05% Oc.
Project Ell requires an initial investment of $50,000 and the produces annual cash flows of $30,000, $25,000, and $15,000. Project Ess requires an initial investment of $60,000 and then produces annual cash flows of $25,000 per year for the next ten years. The company ranks projects by their payback periods.
Calculate the Net Present Value of a project which requires an initial investment of $255000 and it is expected to generate a cash inflow of $30000 each month for 12 months. Assume that the salvage value of the project is zero. The target rate of return is 14% per annum. Write the formula and calculate NPV. Justify the result.
Initial investment............... $80,000 Annual after-tax cash inflow............. ? Salvage value........................ $0 Net present value................ $13,600 Life of the project................ 7 years Discount rate........................ 12% Based on the data given above, the annual cash inflow from the project after the initial investment is closest to... (assume the after-tax cash flows are the same each year) Select one: a. $36,428 b. $22,766 c. $23,747 d. $20,509 e. $32,894