1.A project manager is using the payback method to make the final decision on which projectto undertake. The company has a 9% required rate of return and expects a 5% rate ofinflation for the following five years.i.ii.What is the non-discounted payback of a project that has cash flows as shown inthe table?What is the rate of return? (use equation given in class)Cash Outflow Cash inflow Net FlowYear10$500,0000112.* 0$75,000&$50,000$150,0003$200,000$350,00040$150,00050$750,000

First, let's calculate the net flow for each year:Year 0: -$500,000 - $0 = -$500,000Year 1: -$0 +…

Answered: 1. A project manager is using the…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Table 8-5 Cumulative (Single Tail) Probabilities of the Normal Probability Distribution (Areas under the Normal Curve from – o to Z) Example: the area to the left of Z = 1.34 is found by following the left Z column down to 1.3 and moving right to the .04 column. At the intersection read 9099. The area to the right of Z- 1.34 is - 9099 - 0901. The area between the mean (center ZX line) and Z- 1.34 is 9099-5- 4099. 01 .02 .03 .04 .Os .06 07 .08 .09 S000 5040 SO80 5120 5160 5199 5239 5279 5319 5359 5398 5438 5478 5517 5557 5596 5636 5675 5714 5753 .2 5793 5832 5871 5910 5948 5987 6026 .6064 6103 6141 .6179 6217 .6255 6293 6331 6368 6406 6443 6480 6517 6554 6591 .6628 6664 6700 6736 6772 .6808 6844 6879 6915 6950 6985 7019 .7054 7088 7123 .7157 .7190 .7224 .7257 7291 .7324 7357 .7389 .7422 7454 .7486 .7517 7549 .7 .7580 7611 7642 7673 .7704 7734 7764 .7794 7823 7852 .7881 7910 .7939 7967 .7995 8023 S051 8078 8106 S133 8159 8186 8212 8238 8264 8289 8315 8340 8365 8389 10 8413 8438 8461 8485…
There is a project with the following cash flows : Year Cash Flow 0 −$ 29,300 1 8,600 2 8,500 3 7,900 4 6,700 What is the payback period?
A project is being analyzed with the following set of cash flows. Calculate the internal rate of return (IRR). (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Cash Year Flow 0 16,000 123 6,700 8,000 6,500 IRR %
Solve this general accounting question
Payback period. Given the cash flow of two projects-A and B-in the following table, and using the payback period decision model, which project(s) do you accept and which proje period for recapturing the initial cash outflow? For payback period calp What is the payback period for project A? 6 Data Table - X years (Round to one decimal place.) (Click on the following icon D in order to copy its contents into a spreadsheet.) Cash Flow B. Cost Cash flow year 1 Cash flow year 2 Cash flow year 3 Cash flow year 4 Cash flow year 5 Cash flow $12,000 $6,000 $6,000 $6,000 $100,000 $20,000 $10,000 $40,000 $6,000 $30,000 SO $6,000 $6,000 year 6. SO Print Done
3. What is the internal rate of return for a project that has a net investment of $14,600 (Time 0 outflow) and a single net cash flow of $25,750 in 5 years? Use excel formulas
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There a project with the following cash flows: Year: 1, 2, 3, 4 Cash Flow: -$21,800 6,300 7,350 6,750 4,400 What is the payback period?
Question 1. A project manager is working on justification of a project. Since very little information is known about the project, some rough estimates have been gathered. Following table is prepared to show the cash inflow and outflow for the following years: Cash In Flow ($) Cash Out Flow ($) Year 900 300 200 2. 400 200 500 300 4 500 200 900 300 a) What is the payback period for this project? b) lf the required rate of return is 20%, is the project mentioned above acceptable? Use NPV. c). Calculate profitability index to determine if the project acceptable. Use 20% interest rate. ) If the required rate of return is accepted as 15%, how this affects the NPV of the project. There is no need for calculation, only make comment. d) NOTE: Show the calculations for the question a, b, and c and fill in the table below. Cash Net Cash In Discounted Year Out cash Cum Cash Flow Flow ($) Cash Flow Flow ($) flow 900 300 200 400 200 3 500 300 500 200 900 300 Discounted Cash Flow (NPV) Net Cash In…
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