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MAN787
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Jun 26, 2024
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NPV (constant cash flows; 5 years) Answer: e EASY 3- Tapley Dental Associates is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's projected NPV can be negative, in which case it will be rejected. WACC = 10% Year: 0 1 2 3 4 5 Cash flows: -$1,000 $300 $300 $300 $300 $300 . $116.73 . $123.15 . $12847 . $131.96 . $13724 o Qa0 o
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A firm evaluates all of its projects by applying the IRR rule.
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Please help me solve this in excel.
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Pm.3
Find out the profitability index (PI) of the following project assuming the required rate of return is 8%. Will you accept the project? Why?
year 0 1 2 3 4 5 Cash Flow ($) -250,000 50,000 40,000 120,000 80,000 45,000
Group of answer choices
Accept the project because the PI is equal to 1.06, which is larger than 0.
Accept the project because the PI is equal to 0.98, which is larger than 0.
Reject the project because the PI is equal to 1.06, which is larger than 1.
Reject the project because the PI is equal to 0.98, which is lower than 1.
Accept the project because the PI is equal to 1.06, which is larger than 1.
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1 see picture
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The total investment required for a project is estimated at OMR100, 000. The cash flows expected from project
for the first four years are given below
Year Project A
Year 1 25,000
Year 2 38,500
Year 3 42,000
Year 4 48,000
What will be pay back period?
2.86
O b. B.23
c.
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All the options are wrong
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Can somone help me solve this problem using excel?
What is the IRR of the project?
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NO GPT ANSWER ; Office Min is considering several risk-free projects:
Project
Initial cash flow
Cash flow in 1 year
A
-8,900
10,680
B
-4,000
4,200
C
-6,600
7,590
The risk-free interest rate is 9%.
Part 1
What is the NPV of project A?
Part 2
What is the NPV of project B?
Part 3
What is the NPV of project C?
Part 4
Which projects should the company accept?
Check all that apply:
Project A
Project C
Project B
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Help me fast so that I will give good rating....
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Find the NPV for the following project if the firm's WACC is 8%.
Year Cash Flow
0
-18,700
8,000
4,000
10,000
5,000
3
Make sure to include the negative in your answer if you calculate a negative.
it DOES matter for NPV answers.
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Har
Don't upload any image
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Porter Company is analyzing two potential Investments.
Project X
$ 75,900
Initial investment
Net cash flow:
Year 1
Year 2
Year 3
Year 4
Multiple Choice
O
If the company is using the payback period method, and it requires a payback of three years or
ess, which project(s) should be selected?
Project Y.
26,000
26,000
26,000
0
Project X.
Project Y
$ 64,000
Both X and Y are acceptable projects.
4,400
28,000
28,000
20,000
Neither X nor Y is an acceptable project.
Project Y because it has a lower Initial Investment.
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Can you please do the following problems using the calculator not Excel
11-1 NPV Project L requires an initial outlay at t = 0 of $65,000, its expected cash inflows are
$12,000 per year for 9 years, and its WACC is 9%. What is the project's NPV?
11-2 IRR Refer to problem 11-1. What is the project's IRR?
11-3 MIRR Refer to problem 11-1. What is the project's MIRR?
11-4 PAYBACK PERIOD Refer to problem 11-1. What is the project's payback?
11-5 DISCOUNTED PAYBACK Refer to problem 11-1. What is the project's discounted payback?
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Q.9.
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Attempts 1
0.7
Keep the Highest 1/2
7. The NPV and payback period
What information does the payback period provide?
Suppose ABC Telecom Inc.'s CFO is evaluating a project with the following cash inflows. She does not know the project's initial cost; however, she does
know that the project's regular payback period is 2.5 years.
Year
Cash Flow
Year 1
$375,000
Year 2
$400,000
Year 3
$500,000
Year 4
$425,000
If the project's weighted average cost of capital (WACC) is 8%, what is its NPV?
O $430,631
$374,462
O $355,739
O $337,016
Which of the following statements indicate a disadvantage of using the discounted payback period for capital budgeting decisions? Check all that apply.
O The discounted payback period does not take the time value of money into account.
The discounted payback period does not take the project's entire life into account.
The discounted payback period is calculated using net income instead of cash flows.
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Connor Corporation is considering two projects (see below). For your analysis, ass
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Cash Flow Year 1
PV
NPV
Profitability Index
IRR
Project A
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510,000
463,636.364
($1,363.64)
$1.00
ANSWER
10%
Project B
-700,000 You can change the i
850,000
772,727.273
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Cash Flow
Year
0
1
2
3
147,000
69,000
70,000
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Internal rate of return
%
If the required return is 16 percent, should the firm accept the project?
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Use the same table to answer the questions
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NPV
1
0
-1
0.1
0.2
NPV Profile
0.3
0.4
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2
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2
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