14. The company has decided that the discount rate for the project is 14%. What is the present value (PV) for the project? (Note: You will need to use Excel the get the answer). Year 0 1 2 3 4 5 Net Cashflow -50,000 12,000 14,000 20,000 24,000 30,000 A. RM64,200 B. RM64,400 C. RM64,600 D. RM65,000
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- 1.Calculate the NPV of the following project using a discount rate of 12 %. Yr 0 = -$500; Yearr1 = -$50; Yr2 = $50; Yearr3 = $200; Yearr4 = $400; Yearr5 = $400a.$118.75b. $208.04c. $ 61.22d.$ 618.752.You are buying your first house for $220,000, and are paying $30,000 as a down payment. You have arranged to finance the remaining $190,000 30-year mortgage with a 7% nominal interest rate and monthly payments. What are the equal monthly payments you must make?a. $1,976b. $1,110c. $1,264d. $1,5133.How much would $1,599 due in 9 years be worth today if the discount rate were 10.5%?a. $3,955.20b. $3,770.35c. $3,927.43d. $4,000.004. Apple company sales last year were $48,000, and its total assets were $25,500. What was its total assets turnover ratio?a. 1.10b. 1.99c. 1.21d. 1.885. you purchase 100 shares at a price of $RM45 per share. One year later, the share are selling for $47 per share. In addition, a dividend of $4 per share is paid at the end of the period. Determine the total return…N2. AccountWhat is the INTERNAL RATE OF RETURN for project A? (Assume a discount rate of 8%) Year Project A Project Z 0 -$35,000 -$350,000 1 17,000 110,000 2 17,000 110,000 3 16,000 105,000 4 15,000 100,000 5 14,000 100,000 O 36.74% O 32.24% O 28.71% O 22.65% 13
- 16. IRR/NPV. Consider the following project with an internal rate of return of 13.1%. (L08-2) Year 0 1 2 Cash Flow +$100 -60 -60 a. Should you accept or reject the project if the discount rate is 12%? b. What is project NPV?4. Fer Designs is considering a project that has the following cash flow and WACC data. What is the project's discounted payback? The WACC is 9%. Cash flow from project -$1,000 $400 $100 $800 Year 0 1236. IRR (S5.3) a. Calculate the net present value of the following project for discount rates of 0, 50, and 100%: Cash Flows ($) C1 Co -6,750 b. What is the IRR of the project? +4,500 C₂ +18,000 Page 141
- Q15Mf2. Your firm is considering choosing either Project X or Project Y with the following cash flows: Year: 0. 1 2 3 4 Project X -$150,000 $75,000. $65,000 55,000 $45,000 Project Y -$180,000 $90,000. $70,000 $70,000 $50,000 Between a discount rate of ______ and ______ you can be sure your firm should prefer Project Y to Project X. a. 0%; 14.16% b. 0%; 10.25% c.14.16%; 24.26% d10.25; 22.63% e. 0%; 25%What is the minimum cash flow you could receive in year 4 that would make the project acceptable at a discount rate of 12%? Answer to 2 decimal places, for example 934.57. Year Cash Flow 0 $-32,000 1 $12,000 2 $14,000 3 $8,000 4 ? 5 $3,000
- The cash flows associated with an investment project are as follows: Project Y (200 000) 100 000 Year 100 000 120 000 110 000 The discount rate is 8 percent. What's the discount payback period of the projects? (compile a spreadsheet) Calculate NPV, PI of a projects Calculate IRR of a projects Should the firm accept the project? a) b) c) d) 01234a. Calculate the net present value of the following project for discount rates of o, 50, and 100%: Co -6,750 b. What is the IRR of the project? Cash Flows ($) C₁ +4,500 C₂ +18,00020) see pic