FIN490 Week 2 Discussion 1

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A cash flow sequence has a receipt of $20,000 today, followed by a disbursement of $17,000 at the end of this year and again next year, and then a receipt of $13,100 three years from now. The MARR is 6 percent. a. What is the ERR for this set of cash flows? b. What is the approximate ERR for this set of cash flows? c. Would a project with these cash flows be a good investment? a. The ERR is%. (Round to two decimal places as needed.)

A project has the following cash flows.  Year 0 1 2 3 4 Amount -200 950 -850 75 12 You are a financial analyst, and note the sequence of cash flows.   What is the internal rate of return for this project?   Round your answer to two decimal places.

The following table contains the estimated cash flows of a project. Assume the appropriate discount rate (hurdle rate) is 14%. Answer the following questions: Year Operating Cash Flow 0 -$20,000 1 $7,000 2 $8,000 3 $9,000 4 $4,000   c. What is the IRR of project 1?

A project has estimated annual net cash flows of $63,700. It is estimated to cost $687,960. Determine the cash payback period. Round your answer to one decimal place.

A project has estimated annual net cash flows of $80,000. It is estimated to cost $600,000. Determine the cash payback period. Round your answer to one decimal place.

Accounting Draw the cash flow diagram for the given project below and then calculate the project net profit. The following table shows the activities description, dependency, duration, and cost elements. Assume the followings: Project overhead 8%. Tax 3%. Bond 1.25%. Profit 6%. Interest rate 9% per year. Down payment 10% with a guarantee letter, which costs 0.25% per month paid to the bank at the project start date. A performance guarantee letter of 10% will be submitted from contractor at the project begin. Invoices are submitted every month and will be paid a month later. Retention 10% and will be paid at the last invoice. Subcontractors: retention 10% will be paid at the last invoice, down payment 20%. Labor: labor expenses to be paid bi-weekly. Equipment: equipment expenses

Keane & Co plc is considering two possible investments. The company requires an Accounting Rate of Return of 12% and payback within 2 years. It has a cost of capital of 12%. Forecast sales and production units Year 1 Year 2 Year 3 Year 4 Contribution per unit Fixed cost per year Initial investment Residual (scrap) value Accounting Rate of Return Internal Rate Return Discount factors at 12% are: Year 1 Year 2 Year 3 Year 4 Year 5 0.893 0.797 0.712 0.636 0.567 Project J 60,000 110,000 80,000 50,000 £40 £800,000 £7,600,000 £300,000 9.5% 8% Project K 30,000 24,000 20,000 12,000 £120 £700,000 £5,500,000 £150,000 19% 18%

Which of the following statements is true? The internal rate of return is the rate of return of an investment project over its useful life. When the net cash inflow is the same every year for a project after the initial investment, the internal rate of return of a project can be determined by dividing the initial investment required in the project by the annual net cash inflow. This computation yields a factor that can be looked up in a table of present values of annuities to find the internal rate of return. Multiple Choice Only statement I is true. Only statement II is true. Both statements are true.

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

urgent please

The following table contains the estimated cash flows of a project. Assume the appropriate discount rate (hurdle rate) is 14%.  Year       Operating Cash Flow  0             -$20,000  1              $7,000   2              $8,000  3              $9,000  4              $4,000   a. What is the payback period of project 1?

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A project has an initial cost of $7,900 and cash inflows of $2,100, $3,140, $3,800, and $4,500 per year over the next four years, respectively. What is the payback period? I need the steps on a financial calculator the ba II

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 Cash Flow Year 1 $325,000 Year 2 600,000 Year 3 300,000 Year 4 450,000   If the project’s desired rate of return is 9.00%, the project’s NPV is     . (Hint: Round your calculations to the nearest dollar.)

General accounting

Based on the cash flows given below, calculate the PI of a project that has a required rate of return of 12 percent. Also, indicate whether the project should be accepted. (Round answer to 2 decimal places, e.g. 25.25.) Year 0:   -$94,000   Year 1:   $19,000   Year 2:   $36,000   Year 3:   -$16,000   Year 4:   $103,000     PI   Type your answer here   Accept project   Choose your answer here

A project has estimated annual net cash flows of $61,100. It is estimated to cost $311,610. Determine the cash payback period. Round your answer to one decimal place. years

What is the payback period? General accounting

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What is the project's payback period on these financial accounting question?