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You have just assessed a project, involving an immediate cash outflow followed by a series of cash inflows over the next seven years, by deducing the NPV and the IRR. You have now discovered that you have underestimated the discount rate. Correcting for the underestimation will have the following effects, relative your original deductions:                      NPV                  IRR A               reduce            no change B            no change         no change C             increase             reduce D             increase            increase

A project has the following cash flows set out below. What is the profitability index of this project if the relevant discount rate is 2 percent? Enter your final answer to two decimal places. Year Cash flow 0 -1,745 1 537 2 2,066 3 3,912

You are a project manager for your company and you are faced with five potential projects that you can invest in. Free cash flow projections and additional relevant data are given for each project in the table below. Assume that there are no cash flows after year 3. Assume that you can only take each project once and that you can only choose one project. Which project would you invest in? Select the best answer. Project Project A Project B Project C Project D Project E O I. Project A II. Project B III. Project C IV. Project D O V. Project E FCF Forecasts by Year (in $1,000) 0 2 1 500 (400) (400) (300) (250) (300) 75 60 75 135 115 175 3 650 210 190 200 Interest Rate (EAR) 8.0% 10.0% 10.0% 12.0% 12.0% IRR 25.00% 17.57% 15.92% 17.81% 19.96%

urgent please

A project has the following cashflows. The project's cumulative cashflow turns positive between year 4 and 5, to be precise it is 4.22. Your further analysis indicates that you are too conservative about the cash flows for Year 1 and 2. You expect both cash flows to be at least $1000 higher, if not more :) How will this affect your calculation of the precise time when the cumulative cashflow turns positive? t 0 ON 35 67 2 4 $ Cash flow (250,000) 41,000 48,000 63,000 79,000 88,000 64,000 41,000 Changes. The project's cumulative cashflow turns positive a bit earlier. Changes. The project's cumulative cashflow now turns positive a lot later. Changes. The project's cumulative cashflow now turns positive a bit later. No change. The project's cumulative cashflow still turns positive between year 4 and 5, to be precise it is 4.22.

(Click on the following icon in order to copy its contents into a spreadsheet.) Year 1 Year 2 Year 3 Year 0 -$50 -$101 $26 $20 $22 $22 $39 $49 Project A B Year 4 $16 $62 You are choosing between two projects. The cash flows for the projects are given in the following table ($ million): a. What are the IRRs of the two projects? b. If your discount rate is 5.2%, what are the NPVs of the two projects? c. Why do IRR and NPV rank the two projects differently?

SUBJECT: ENGINEERING ECONOMICS (a) Identify the Given and the Unknown or what is being asked in the problem (b)Provide the formula to be used (c)Show the complete solution. The final answer is already provided. What is the value of a perpetuity of P100 per year if the discount rate is 5% and the cash flows do not begin until two years from now? Answer: P = P1,814.05

Solve the following problem applying the method Problem. Assume the following cash flow for 2 projects.Assuming that the cash flows are occurring at the end of the year. Find the payback period for both these projects.

Given the following information, calculate the Internal Rate of Return (IRR) for the following cash flow. Hint: use linear interpolation method for discount rates 2% and 12%. Project costs and benefits Cash Outflow Year 0 Cash Inflow Year 1 Cash Inflow Year 2 Cash Inflow Year 3 Project -$2580 $977 $930 $955

Please do not provide solution in image format and give proper explanation.

Please help solve this question not use ai

Explain  all point of question  with proper step by step Answer.