1. Payback period: it is the amount of time required to recover the original cost of the project.
Project A = (150/150 )+ (300/150) = 1.5 years.
Project B = (50/50) + (50/150) = 1.33 years.
Project C = (400/400) = 1 year.
2.
NPV = present value of cash inflow- the present value of cash
outflow.
Dicount rate = 10%
NPV of project A = 84.30
NPV of project B = 69.42
NPV of project C = 4.96
3. IRR: It is the discount rate at which the present value of projects cash outflows (cost) is equal to the present value of projects cash inflow.
IRR of Project A = 28.07%
IRR of Project B = 50%
IRR of Project C = 11.24%
What is the payback period for each project? What is the IRR for each project? What...
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(Payback period, NPV, PI, and IRR calculations) You are considering a project with an initial cash outlay of $85 comma 000 and expected free cash flows of $30 comma 000 at the end of each year for 6 years. The required rate of return for this project is 6 percent. a. What is the project's payback period? b. What is the project's NPV? c. What is the project's PI? d. What is the project's IRR?
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a. What is the payback period for Project A?
b.What is the payback period for Project B?
c. What is the discounted payback period for Project A?
d. What is the discounted payback period for Project B?
e. What is the NPV for Project A?
f. What is the NPV for Project B?
g. What is the IRR for Project A?
h. What is the IRR for Project B?
i. What is the profitability index for Project A?
j. What...
Please show your steps! Question 1 a) What is the NPV, IRR, and payback period of a project with the following cash flows if WACC is 20%? Time: 0 -$350,000 1 $100,000 2 $100,000 3 $100,000 5 $50,000 $50,000 NPV= IRRE Payback period= b) Should you accept or reject the project according to NPV and IRR?
Please show your steps! Question 1 a) What is the NPV, IRR, and payback period of a project with the following cash flows if WACC is 20%? Time: 0 -$350,000 1 $100,000 2 $100,000 3 $100,000 $100,000 A $50,000 $50,000 NPV= IRR= Payback period b) Should you accept or reject the project according to NPV and IRR?!
Suppose You are given the following cash flows:
find the payback period,
the IRR,
and the required rate of return in 8%
1. Suppose you are given the following cash flows: Initial Investment -120 Year 1 Cash Flow +70 Year 2 Cash Flow +60 Year 3 Cash Flow +40 a. (7 points) What is the payback period on the investment? +20 70 60 40 1 3 tr 3.02 Ø & 3 years b. (7 points) What is the IRR for...
Given the following cash flows for a capital project, calculate the Payback period, NPV, PI, IRR, and MIRR. The required rate of return is 8 percent. Year CF 0 $(50,000.00) 1 $15,000.00 2 $15,000.00 3 $15,000.00 4 $15,000.00 5 $5,000.00
This assignment supports the following objectives: Calculate IRR, NPV and Payback Period Analyze the cash flows generated by mutually exclusive projects Formulate a recommendation using IRR, NPV and Payback Period as the criteria Background Suppose that your firm is considering the following two mutually exclusive projects. Both projects have the same initial cost of $312,500 and the resulting annual cash flows for the first five years are as shown in the table below: Year Alpha Beta 0 $ (312,500) $...