Macy Pharmacy has a project which has the following cash flows.Year 0-$200,000Year 1 = $50,000Year 2= $100,000$150,000Year 3Year 4 $40,000=Year 5 $25,000The cost of capital is 10%. What is the project's discounted payback?1.87633 yearsO2.0000 yearsO2.3333 yearsO2.4793 yearsO2.6380 years

YearsCash flows0($200,000)1$50,0002$100,0003$150,0004$40,0005$25,000Required:Discounted Payback…

Macy Pharmacy has a project which has the following cash flows. Year 0-$200,000 Year 1 = $50,000 Year 2= $100,000 Year 3 = $150,000 Year 4= $40,000 Year 5= $25,000 The cost of capital is 10%. What is the project's discounted payback? 1.8763 years 2.0000 years O2.3333 years O2.4793 years O2.6380 years

Macy Pharmacy has a project which has the following cash flows. Year 0-$200,000 Year 1 = $50,000 Year 2= $100,000 Year 3 = $150,000 Year 4= $40,000 Year 5= $25,000 The cost of capital is 10%. What is the project's discounted payback? 1.8763 years 2.0000 years O2.3333 years O2.4793 years O2.6380 years

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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Suppose a project has the following cash flows. What is the NPV if the cost of the project is $105,000 and the required return is 9.75%? Year Cash Flow $28.000 32,000 3 36,000 4 39,000 O$6,000 O $20,678 $1,193 $27,335 O $30,000 Page 16 of 30
Hello Mitty Ltd is considering a project MEA as shown below. The estimated cash flows for this project is as follows: Project MEA £000 Investment (immediate cash outflow) 70 Net annual cash inflows: Year 1 40 Year 2 45 The business’s cost of finance is estimate at 12 per cent. Calculate: a) The net present value for project MEA. b) The approximate internal rate of return for project MEA.
Royal Arts Company has invested 18000 as the initial investment into a new project. the following are the expected cash flows from the project. the appropriate discount rate is 5% what is the NPV of the project?Year 1 11000Year 2 8000Year 3 2000
A project requires an investment of $1000 and generates a cash flow of $1000 in 1 year and another $1000 in 5 years. What is the IRR? A. 16.87% B. 25.13% C. 32.47% D. 38.16%
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Masulis Inc. is considering a project that has the following cash flow and WACC data. What is the project's discounted payback? WACC: Year 0 Cash flows -$1,225 a. 3.37 years b. 3.63 years c. 1.12 years d. 2.63 years e. 2.37 years 8.75% 1 $575 2 $535 3 $495 4 $455
The following are a project's cash flows. Its cost of capital is 10% . What is the project's discounted payback? Year 0 1 2 3 Cash flows −$900 $500 $500 $500
Rubash Company is considering a project that has the following cash flow and WACC data. What is the project's MIRR? WACC = 9% Year: 0 1 2 3 Cash flows: - $1,500 $400 $525 $940 a. 8.00% b 8.45% c. 8.75% d. 9.33% e. 9.83%
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