A project cost 80000 is expects to generate cash flows are given as follows.@10% Year 1 2 3 4 5 CF 20000 15000 8000 6000 7000 PV factor 0.893 0.792 0.712 0.636 0.567 Calculate the NPV and justify whether the project is recommended or not.
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A project cost 80000 is expects to generate
Year |
1 |
2 |
3 |
4 |
5 |
CF |
20000 |
15000 |
8000 |
6000 |
7000 |
PV factor |
0.893 |
0.792 |
0.712 |
0.636 |
0.567 |
Calculate the NPV and justify whether the project is recommended or not.
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- A project has the following cash flows: Year Cash Flows 0 $ 128,200 12 1 2 3 4 49,400 63,800 51,600 28,100 The required return is 8.7 percent. What is the profitability index for this project? Multiple Choice 1.142 1.003 .803 1.038You are considering a project that has the following cash flow data. What is the project's payback? Year 0 1 2 3 Cash Flow -900 350 450 550 Group of answer choices 2.40 1.53 1.96 2.18 2.62Consider a project with the following cash flows: Year Cash Flow - 8000 1 3200 2 3200 3 3200 4 3200 Assume the appropriate discount rate for this project is 14%. The profitability index for this project is closest to: O A. 0.66 O B. 0.18 O C. 0.25 O D. 0.17
- Explain well with proper answer.Find the external rate of return (ERR) for the following project when the external reinvestment rate is $ = 10% (equal to the MARR). Is this an acceptable project?What is the NPV, payback period, and internal rate of return for all project. With the initial cost of 1250000.000. Which project is the best.
- If cash flow for a project are as follows, YEAR 0 1 2 3 4 BENEFITS -100000 25000 40000 40000 50000 the discount rate is 12% find The benefit cost Ratio of the project the net benefit cost ratio of the project Should the investor invest in the projectPlease answer the following questions using the information below: NPV. Using a 10% required rate of return, calculate the NPV for this project. Should it be accepted or rejected? PI. Calculate the Profitability Index (PI) for this project. Should it be accepted or rejected? Consider the following cash flows: Year 0 1 2 3 4 5 6 Cash Flow -$8,000 $3,000 $3,600 $2,700 $2,500 $2,100 $1,600 Payback. The company requires all projects to payback within 3 years. Calculate the payback period. Should it be accepted or rejected? Discounted Payback. Calculate the discounted payback using a discount rate of 10%. Should it be accepted or rejected? IRR. Calculate the IRR for this project. The company’s required rate of return is 10%. Should it be accepted or rejected? NPV. Using a 10% required rate of return, calculate the NPV for this project. Should it be accepted or rejected? PI. Calculate the Profitability Index (PI) for this project. Should it be accepted or rejected?…You are considering a project that has the following cash flow data. What is the project's payback? (Ch. 11) Year 0 1 2 3 Cash Flow -900 350 450 600 Group of answer choices 1.95 1.52 2.60 2.17 2.38
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