D Complete the following 6 Wk 3 Financial Exercises: Problem Set 1, Part 2 problems: 1. Calculate the net present value (NPV) of the following cash flow stream if the required rate is 12%: Insert your NPV calculation. Year Cash Flow Is this a good project for the business to accept? Explain why or why not. 6 7 Insert your answer. 2. Calculate the NPV of the following cash flow projections based on a required rate of 10.5%: 8 9 Insert your NPV calculation. 10 11 Year Cash Flow Is this a good project for the business to accept? Explain why or why not. 12 0 (230,000) 0 (120,000) 1 60,000 1 35,000 2 60,000 2 47,500 3 60,000 3 55,000 4 60,000 4 62,000 5 60,000
D Complete the following 6 Wk 3 Financial Exercises: Problem Set 1, Part 2 problems: 1. Calculate the net present value (NPV) of the following cash flow stream if the required rate is 12%: Insert your NPV calculation. Year Cash Flow Is this a good project for the business to accept? Explain why or why not. 6 7 Insert your answer. 2. Calculate the NPV of the following cash flow projections based on a required rate of 10.5%: 8 9 Insert your NPV calculation. 10 11 Year Cash Flow Is this a good project for the business to accept? Explain why or why not. 12 0 (230,000) 0 (120,000) 1 60,000 1 35,000 2 60,000 2 47,500 3 60,000 3 55,000 4 60,000 4 62,000 5 60,000
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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How can I answer questions 1-2 and How can I explain if this a good project for the business to accept and why
Transcribed Image Text:A
Complete the following 6 Wk 3 Financial Exercises: Problem Set 1, Part
1 2 problems:
1. Calculate the net present value (NPV) of the following cash flow
2 stream if the required rate is 12%:
3 Insert your NPV calculation.
4
5
Is this a good project for the business to accept? Explain why or why not.
6
Year
Cash Flow
7 Insert your answer.
2. Calculate the NPV of the following cash flow projections based on a
required rate of 10.5%:
8
9 Insert your NPV calculation.
10
11
Year
Cash Flow
Is this a good project for the business to accept? Explain why or why not.
12
B
0
(230,000)
C
1
60,000
0
1
(120,000) 35,000
D
2
60,000
2
47,500
E
3
60,000
3
55,000
F
4
60,000
4
62,000
G
5
60,000
Transcribed Image Text:Example Part 2
#1 = NPV(Discount Rate, range of values)+initial investment.
#2 = NPV(Discount Rate, range of values)+initial investment.
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