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
Problem 1PS
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Please help me solve Question 15 - screen capture attached. Thank you.
Transcribed Image Text:Question 15
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.
0
-45,452
2
14,921
Year
Free Cash Flows
O 3.8 years; Invest
O 3.8 years; Do not invest
O 4.8 years: Invest
O 4.8 years: Do not invest
For the following stream of free cash flows, calculate the internal rate of return.
Year
Free Cash Flows
O 14.5%
O 12.7%
O 13.9%
O 11.5%
Year
Free Cash Flows
O $2,467.03
0
$2,192.92
O $2,743.22
O $2,911.41
-45,452
For the following stream of free cash flows, calculate the npv if the discount rate is 12.5%.
1
10,005
0
-45,452
1
10,005
1
10,005
2
14,921
2
14,921
3
12.537
3
12,537
3
12,537
4
10,452
4
10.452
4
10,452
5
21,455
5
21,455
5
21,455
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