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Suppose you are evaluating a project with the expected future cash inflows shown in the following table. Your boss has asked you to calculate the project’s net present value (NPV). You don’t know the project’s initial cost, but you do know the project’s regular, or conventional, payback period is 2.50 years. Year Cash Flow Year 1 $375,000 Year 2 $450,000 Year 3 $425,000 Year 4 $450,000   If the project’s weighted average cost of capital (WACC) is 10%, the project’s NPV (rounded to the nearest dollar) is: $317,074   $332,173   $241,580   $301,975     Which of the following statements indicate a disadvantage of using the regular payback period (not the discounted payback period) for capital budgeting decisions? Check all that apply. The payback period does not take the time value of money into account.   The payback period is calculated using net income instead of cash flows.   The payback period does not take the project’s…

Suppose you are evaluating a project with the expected future cash inflows shown in the following table. Your boss has asked you to calculate the project's net present value (NPV). You don't know the project's initial cost, but you do know the project's regular, or conventional, payback period is 2.50 years. Year Cash Flow Year 1 $375,000 Year 2 $450,000 Year 3 $400,000 Year 4 $425,000 If the project's weighted average cost of capital (WACC) is 10 %, the project's NPV (rounded to the nearest dollar) is: $306,479 O $278,617 O $334,340 $236,824 Which of the following statements indicate a disadvantage of using the regular payback period (not the discounted payback period) for capital budgeting decisions? Check all that apply. The payback period does not take the time value of money into account. The payback period does not take the project's entire life into account. The payback period is calculated using net income instead of cash flows.

Suppose you are evaluating a project with the expected future cash inflows shown in the following table. Your boss has asked you to calculate the project’s net present value (NPV). You don’t know the project’s initial cost, but you do know the project’s regular, or conventional, payback period is 2.50 years. Year Cash Flow Year 1 $300,000 Year 2 $500,000 Year 3 $425,000 Year 4 $450,000 1. If the project’s weighted average cost of capital (WACC) is 9%, the project’s NPV (rounded to the nearest dollar) is: $380,120   $330,539   $264,431   $314,012   2. Which of the following statements indicate a disadvantage of using the regular payback period (not the discounted payback period) for capital budgeting decisions? Check all that apply.   The payback period is calculated using net income instead of cash flows.   The payback period does not take the time value of money into account.   The payback period does not take the project’s entire life…

What information does the payback period provide? Suppose you are evaluating a project with the expected future cash inflows shown in the following table. Your boss has asked you to calculate the project’s net present value (NPV). You don’t know the project’s initial cost, but you do know the project’s regular, or conventional, payback period is 2.50 years. Year Cash Flow Year 1 $350,000 Year 2 $500,000 Year 3 $450,000 Year 4 $425,000   If the project’s weighted average cost of capital (WACC) is 8%, the project’s NPV (rounded to the nearest dollar) is: $312,620   $295,253   $277,885   $347,356     Which of the following statements indicate a disadvantage of using the regular payback period (not the discounted payback period) for capital budgeting decisions? Check all that apply. The payback period is calculated using net income instead of cash flows.   The payback period does not take the project’s entire life into account.…

7. The NPV and payback period What information does the payback period provide? Suppose you are evaluating a project with the expected future cash inflows shown in the following table. Your boss has asked you to calculate the project’s net present value (NPV). You don’t know the project’s initial cost, but you do know the project’s regular, or conventional, payback period is 2.50 years. Year Cash Flow Year 1 $375,000 Year 2 $475,000 Year 3 $500,000 Year 4 $400,000   If the project’s weighted average cost of capital (WACC) is 8%, the project’s NPV (rounded to the nearest dollar) is: $345,386   $328,117   $414,463   $362,655

7. The NPV and payback period What information does the payback period provide? Suppose you are evaluating a project with the expected future cash inflows shown in the following table. Your boss has asked you to calculate the project’s net present value (NPV). You don’t know the project’s initial cost, but you do know the project’s regular, or conventional, payback period is 2.50 years. Year Cash Flow Year 1 $300,000 Year 2 $450,000 Year 3 $500,000 Year 4 $500,000   If the project’s weighted average cost of capital (WACC) is 8%, the project’s NPV (rounded to the nearest dollar) is: $470,812   $449,412   $513,613   $428,011     Which of the following statements indicate a disadvantage of using the regular payback period (not the discounted payback period) for capital budgeting decisions? Check all that apply. The payback period does not take the time value of money into account.   The payback period is calculated using net…

What information does the payback period provide? Suppose you are evaluating a project with the expected future cash inflows shown in the following table. Your boss has asked you to calculate the project's net present value (NPV). You don't know the project's initial cost, but you do know the project's regular, or conventional, payback period is 2.50 years. If the project's weighted average cost of capital (WACC) is 9%, the project's NPV (rounded to the nearest dollar) is: $355,048 $287,420 $405,769 $338,141 Which of the following statements indicate a disadvantage of using the regular payback period (not the discounted payback period) for capital budgeting decisions? Check all that apply. The payback period does not take the time value of money into account. The payback period is calculated using net income instead of cash flows. The payback period does not take the project's entire life into account.

Please answer the following questions using the information below: NPV. Using a 10% required rate of return, calculate the NPV for this project. Should  it be accepted or rejected?  PI. Calculate the Profitability Index (PI) for this project. Should it be accepted or  rejected?   Consider the following cash flows:  Year 0 1 2 3 4 5 6  Cash Flow -$8,000 $3,000 $3,600 $2,700 $2,500 $2,100 $1,600  Payback. The company requires all projects to payback within 3 years. Calculate the payback period. Should it be accepted or rejected?  Discounted Payback. Calculate the discounted payback using a discount rate of 10%.  Should it be accepted or rejected? IRR. Calculate the IRR for this project. The company’s required rate of return is  10%. Should it be accepted or rejected?  NPV. Using a 10% required rate of return, calculate the NPV for this project. Should  it be accepted or rejected?  PI. Calculate the Profitability Index (PI) for this project. Should it be accepted or  rejected?…

7. The NPV and payback period What information does the payback period provide? Suppose you are evaluating a project with the expected future cash inflows shown in the following table. Your boss has asked you to calculate the project's net present value (NPV). You don't know the project's initial cost, but you do know the project's regular, or conventional, payback period is 2.50 years. Year Year 1 Year 2 Year 3 Year 4 If the project's weighted average cost of capital (WACC) is 10%, the project's NPV (rounded to the nearest dollar) is: O O Cash Flow $325,000 $475,000 $425,000 $475,000 0 0 $351,183 $367,146 Which of the following statements indicate a disadvantage of using the regular payback period (not the discounted payback period) for capital budgeting decisions? Check all that apply. $319,257 $303,294 The payback period is calculated using net income instead of cash flows. The payback period does not take the project's entire life into account. The payback period does not take the…

Find the discounted payback period? General accounting

11. The NPV and payback period Suppose you are evaluating a project with the cash inflows shown in the following table. Your boss has asked you to calculate the project's net present value (NPV). You don't know the project's initial cost, but you do know the project's regular, or conventional, payback period is 2.5 years. The project's annual cash flows are: Year Year 1 Year 2 Year 3 Year 4 Cash Flow $350,000 550,000 300,000 475,000 If the project's desired rate of return is 9.00 %, the project's NPV is . (Hint: Round your calculations to the nearest dollar.) Grade It Now Save & Continue Continue without saving

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Use the following information to answer questions 11-15:A firm evaluates a project with the following cash flows. The firm has a 2 year payback period criteria and a required return of 11 percent. Year Cash flow (OMR) 0 -24,000 1 17,000 2 12,000 3 9,000 4 -8,000 5 11,000   11. What is the net present value for the project?12. What is the payback period for the project?13. What is the discounted payback period for the project?14. What is the profitability index for the project?15. Given your analysis, should the firm accept or reject the project?

June.com is considering two projects given below: if the two projects have the same payback period, what would be project 2’s internal rate of return (IRR)? (Hint: you need to find project 1’s payback and find project 2 cashflow at year 0 using project 1’s payback period). Year Project 1 Project 2       Cash Flow Cash Flow cumulative cash flow 0 -$100 ?     1 30 40 -$70   2 50 80 -$20   3 40 60 $20   4 50 60 $70

​(Payback​period, NPV,​ PI, and IRR calculations​) You are considering a project with an initial cash outlay of ​$80,000 and expected free cash flows of ​$26,000 at the end of each year for 6 years. The required rate of return for this project is 7 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​?

A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Year Cash Flow $28,900 12,900 15,900 11,900 2. What is the NPV for the project if the required return is 11 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV

A firm evaluates a project with the following cash flows. The firm has a 2 year payback period criteria and a required return of 11 percent. Year Cash flow (OMR) -24,000 17,000 12,000 9,000 1 2 3 4 -8,000 11,000 11. What is the net present value for the project? 12. What is the payback period for the project? 13. What is the discounted payback period for the project? 14. What is the profitability index for the project? 15. Given your analysis, should the firm accept or reject the 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 3.5 and 4.5 years, respectively. Time: Cash flow: 0 1 2 3 4 -$5,100 $1,240 $2,440 $1,640 $1,640 Discounted payback Use the discounted payback decision rule to evaluate this project. (Round your answer to 2 decimal places.) Should it be accepted or rejected? 5 $1,440 years 6 $1,240

The projected cash flows from a project costing $180,000 today are as follows: years 1-3 years 4-9 $0 $40,000 per year year 10 $70,000 per year If the required rate of return is 9 percent, a. Find the MIRR. b. Given your answer "a", should you accept/reject the project?