A firm is considering a six-year project with a payback period of 3.5 years. It has cash flows the first three years of $2,000 per year, and cash flows of $1,000 during its last three years. What is the NPV of this project in a 10% "world?" [using a 10% distount rate!] O $2,500 O $881 O$1,097 O $342 O $687

Q: Project L requires an initial outlay at t = 0 of $57,000, its expected cash inflows are $12,000 per…

A: Solution:Payback period refers to the period at which the initial investment gets recovered by the…

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A: Using the IRR function in Excel

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Q: You are considering a capital project that requires an initial investment of $ 40,000 , has…

A: Present value of annual cash flows = Annual Cash Flow × Present value annuity factor of year 4 at…

Q: picture

A: Formula to calculate NPV: NPV = Cash flow/(1+i)^n - initial investment or  It can be solved by using…

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A: Given The Initial outlay is $70,000 Expected cashflows are $14,000

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A: IRR means internal rate of return. It is computed by following formula:-IRR = lower rate + 2. NPV…

Q: Project L costs $70,000, its expected cash inflows are $16,000 per year for 8 years, and its WACC is…

A: Working note:

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Q: Project L requires an initial outlay at t = 0 of $66,000, its expected cash inflows are $13,000 per…

A: Payback period is the amount of time required to recover initial investment. Payback period =Initial…

Q: A project has annual cash flows of $4,500 for the next 10 years and then $7,500 each year for the…

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A: Payback period: The payback period is a simple method of capital investment evaluation. It counts on…

Q: The project’s hurdle rate is 10%.  What is the project’s discounted payback? 15 years 2.58 years…

A: Solution: initial investment = P700 million Discount rate = 10%

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A: Using excel MIRR function

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