Homework #6B (NPV)

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University of Maryland, University College *

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330 7980

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Finance

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Jan 9, 2024

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docx

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4

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Question 1 (1 point) Saved Find the net present value (NPV) for the following series of future cash flows, assuming the company's cost of capital is 9.69 percent. The initial outlay is $336,464. Year 1: 180,204 Year 2: 136,832 Year 3: 136,711 Year 4: 120,645 Year 5: 160,889 Round the answer to two decimal places. Your Answer: 229788.20 Answer D BB E|G? Insert AutoSum Recently Financial Logical Text Date& Lookup& Math& More Name Function ~ Used ~ ~ ~ ~ Time~ Reference~ Tig~ Functions~ | Manager BJ Function Library Def AL - fe || =NPV(9.69%,180204,136832,136711,120645,160889)-336464 4 A 8 c D 3 F G H i 1 [s220,788.20] =
Question 2 (1 point) Saved Tall Trees, Inc. is using the net present value (NPV) when evaluating projects. You have to find the NPV for the company’s project, assuming the company's cost of capital is 12.33 percent. The initial outlay for the project is $492,385. The project will produce the following after-tax cash inflows of Year 1: 163,009 Year 2: 171,963 Year 3: 5,300 Year 4: 134,793 Round the answer to two decimal places. Your Answer: g g & < Insert AutoSum Recently Financial Logical Text Date& Lookup& Math& More Function - Used v - - v Timev Reference~ Trigv Functions~ Man( Function Library Al h fe =NPV(12.33%,163009,171963,5300,134793)-492385 )l (5122,584.79 A4 A B | ¢ | o | E | F | 6 Ho| 1 i 2
Question 3 (1 point) Saved Green Landscaping, Inc. is using net present value (NPV) when evaluating projects. Green Landscaping’s cost of capital is 10.95 percent. What is the NPV of a project if the initial costs are $1,578,893 and the project life is estimated as 7 years? The project will produce the same after-tax cash inflows of $660,824 per year at the end of the year. Round the answer to two decimal places. Your Answer: & @ Insert AutoSum Recently Financial Logical Text Date& Lookup& Math& Function ~ Used v v v v Time~ Referencev Tigv Fu Function Library Al v Fe || =PV(10.95%,7,660824,0,0)+1578893 B c D E F G
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Question 4 (1 point) Saved A project has an initial outlay of $2,462. It has a single payoff at the end of year 3 of $8,283. What is the net present value (NPV) of the project if the company’s cost of capital is 14.41 percent? Round the answer to two decimal places. Your Answer: 3068.90 Answer DY § @ Insert AutoSum Recently Financial Logical Text Date& Lookup& Math& Function v Usedv v ~ ~ Time~ Reference~ Tiig~ Fundtion Library Al - fe =PV(14.41%,3,0,8283,0)+2462