For the following stream of free cash flows, calculate the payback period and indicate whether you would invest in the project with a four year maximum allowable payback period. Year 3 0 -45,452 Free Cash Flows 12.537 O 3.8 years: Invest Ⓒ 3.8 years: Do not invest ○ 4.8 years: Invest Ⓒ4.8 years: Do not invest For the following stream of free cash flows, calculate the internal rate of return. Year 0 1 Free Cash Flows -45,452 10.005 O 14.5% O 12.7% O 13.9% O 11.5% For the following stream of free cash flows, calculate the nov if the discount rate is 12.5%. 0 -45.452 Year Free Cash Flows 1 10,005 O $2.467.03 O $2.192.92 $2.743.22 O $2.91141 1 10,005 2 14,921 2 14,921 2 14,921 3 12.537 3 12.537 10,452 10,452 4 10,452 5 21.455 5 21,455 5 21,455
For the following stream of free cash flows, calculate the payback period and indicate whether you would invest in the project with a four year maximum allowable payback period. Year 3 0 -45,452 Free Cash Flows 12.537 O 3.8 years: Invest Ⓒ 3.8 years: Do not invest ○ 4.8 years: Invest Ⓒ4.8 years: Do not invest For the following stream of free cash flows, calculate the internal rate of return. Year 0 1 Free Cash Flows -45,452 10.005 O 14.5% O 12.7% O 13.9% O 11.5% For the following stream of free cash flows, calculate the nov if the discount rate is 12.5%. 0 -45.452 Year Free Cash Flows 1 10,005 O $2.467.03 O $2.192.92 $2.743.22 O $2.91141 1 10,005 2 14,921 2 14,921 2 14,921 3 12.537 3 12.537 10,452 10,452 4 10,452 5 21.455 5 21,455 5 21,455
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
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