Moates Corporation has provided the following data concerning an investment project that it is considering:     Initial investment $ 270,000   Annual cash flow  $ 125,000 per year Expected life of the project   4 years Discount rate   10 %     The net present value of the project is closest to: (Round your intermediate calculations and final answer to the nearest whole dollar amount.)

Q: NPV and IRR   Benson Designs has prepared the following estimates for a​ long-term project it is…

A: GIVEN, initial investment = $9670 years = 5 after tax cashflow = $3000 r= 8%

Q: 1. Calculate the net present value of this project. (Future Value of $1. Present Value of $1. Future…

A: Net Present Value (NPV) is the difference between the present value of cash inflows and the present…

Q: A project has an initial cost of $60,000, expected net cash inflows of $15,000 per year for 8 years,…

A: Net present value means the difference between the present value of cash inflow and present value of…

Q: NPV and IRR Benson Designs has prepared the following estimates for a long-term project it is…

A: If NPV of project is positive, Project must be accepted.If NPV of project is negative, Project must…

Q: A project has an initial cost of $35,000, expected net cash inflows of $10,000 per year for 11…

A: The profitability index is a discounting technique of capital budgeting. It is a time-adjusted…

Q: Your company is considering a capital project that will require a net initial investment of…

A: Solution:- Internal Rate of Return (IRR) means the rate of return the project is yielding. At IRR,…

Q: Fijisawa, Inc. is considering a major expansion of its product line and has estimated the following…

A: NPV -  Net Present Value is the net of present value of cash inflow in future and cash outflow…

Q: A project has an initial cost of $50,000, expected net cash inflows of $12,000 per year for 11…

A: Modified rate of return is a measure used to rank the investment alternatives on the basis of…

Q: A project has an initial cost of $50,000, expected net cash inflows of $13,000 per year for 7 years,…

A: Initial Cost = i = $50,000Cash Flow = cf = $13,000Time = t = 7 YearsCost of Capital = r = 11%

Q: A project has an initial cost of $45,000, expected net cash inflows of $9,000 per year for 10 years,…

A: Profitability Index or PI is the ratio of present value of operating cash inflows to the present…

Q: The Michner Corporation is trying to choose between the following two mutually exclusive design…

A: Capital budgeting refers to the tool which is used in evaluating the investment proposal in order to…

Q: The Ball Shoe Company is considering an investment project that requires an initial investment of…

A: Initial investment is $532,000 Cash inflows are $79,275 per year for 10 year Maximum payback period…

Q: A project has an initial cost of $40,000, expected net cash inflows of $11,000 per year for 6 years,…

A: The process of analyzing and evaluating any project's feasibility and profitability is recognized as…

Q: a. What price should Vencap offer for the investment opportunity if it requires a 9.9% return on…

A: Market price of the share when multiplied with the number of shares acquired by the company gives…

Q: NPV and IRR Benson Designs has prepared the following estimates for a long term project it is…

A: Net present value refers to the method of capital budgeting used for estimating the viability of the…

Q: Please as said in the question, by first constructing timeline as it says. A project has an initial…

A: Here,YearValues0 $-65,000.001 $  14,000.002 $  14,000.003 $  14,000.004 $  14,000.005 $  14,000.006…

Q: A project has an initial cost of $45,000, expected net cash inflows of $12,000 per year for 7 years,…

A: Net Present Value(NPV) is excess of PV of inflows over PV of outlays relate to proposal discounted…

Q: NPV and IRR   Benson Designs has prepared the following estimates for a​ long-term project it is…

A: NPV is the difference between the sum of the present values of all future cash inflows and the sum…

Q: A project has an initial cost of $40,000, expected net cash inflows of $13,000 per year for 9 years,…

A: Initial Cost = $40,000Cash Flow = cf = $13,000Time = t = 9 YearsCost of Capital = r = 10%

Q: The Bartram-Pulley Company (BPC) must decide between two mutually exclusive investment projects.…

A: When the probability of occurrence of each value of cash flow for a particular circumstance is…

Q: The Butler-Perkins Company (BPC) must decide between two mutually exclusive projects. Each costs…

A: Cash flow refer to the metric that shows the company's ability to generate cash-based income through…

Q: The net present value of the project is closest to:

A: Net Present Value (NPV) is the net difference between the associated present value of cash outflows…

Q: A project has an initial cost of $60,000, expected net cash inflows of $13,000 per year for 9 years,…

A: NPV refers to net present value.It is the sum of present values of all cash flows associated with a…

Q: Benson Designs has prepared the following estimates for a​ long-term project it is considering. The…

A: Net present value is computed as present value of cash inflows less initial investment.Internal rate…

Q: NPV and IRR Benson Designs has prepared the following estimates for a long-term project it is…

A: Net present value technique is a method to evaluate the profitability of a potential project. A…

Q: project that it is considering: Initial investment Annual cash flow $ 480,000 $ 145,000 per year Use…

A: Net present value is most important capital budgeting techniques and based on time value of money.…

Q: A project has an initial cost of $35,000, expected net cash inflows of $9,000 per year for 8 years,…

A: NPV = Initial Investment + PV of cash inflows

Q: A project has an initial cost of $55,000, expected net cash inflows of $14,000 per year for 6 years,…

A: Initial Cost = 55,000 Net Cash Inflow = 14,000 Time Period (N) = 6 years Cost of Capital (r) = 8%…

Q: NPV and IRR   Benson Designs has prepared the following estimates for a​ long-term project it is…

A: Formula for NPV :  NPV = Initial Investment + C1/(1+r) + C2/(1+r)^2 + C3/(1+r)^3 + ......... +…

Q: Moates Corporation has provided the following data conceming an investment project that it is…

A: Net present value = Present value of annual cash flows - Initial investment PVA(n=4,i=10%) = 3.170

Q: A project has an initial cost of $45,000, expected net cash inflows of $8,000 per year for 9 years,…

A: Initial cost = $45,000Net cash inflow = $8,000 per year for 9 yearsCost of capital = 8%

Q: A project has an initial cost of $40,000, expected net cash inflows of $12,000 per year for 12…

A: Modified rate of return is a measure used to rank the investment alternatives on the basis of…

Q: A project has an initial cost of $ 55,000, expected net cash inflows of $10,000 per year for 10…

A: Initial Cost = i = $55,000Cash Flow = cf = $10,000Time =  t = 10 YearsCost of Capital = r = 9%

Q: A project has an initial cost of $60,000, expected net cash inflows of $12,000 per year for 9 years,…

A: Initial Cost is $60,000 Expected net cash inflow is $12000 Time period is 9 years Cost of Capital is…

Q: A project has an initial cost of $40,000, expected net cash inflows of $11,000 per year for 7 years,…

A: An indicator used to rank investment options according to the viability of the projects is the…

Q: A project has an initial cost of $50,000, expected net cash inflows of $9,000 per year for 10 years,…

A: Given: Year Particulars Amount 0 Initial cost -$50,000 1 Cash inflows $9,000 2 Cash inflows…

Q: indell Corporation is considering two projects, A and B, and it has gathered the following estimates…

A: Present value index represents the efficiency of a project under capital budgeting decisions.…

Q: 1. Compute the profitability index for each project. 2. Based on the profitability index, which…

A: Answer

Q: A project has an initial cost of $50,000, expected net cash inflows of $11,000 per year for 10…

A: The present value of an investment project's projected net cash flows is called NPV.

Q: A project has an initial cost of $55,000, expected net cash inflows of $13,000 per year for 12…

A: Profitability index is a capital budgeting method which funds the ratio of present value of cash…

Q: Find internal rate of return of a project with an initial cost of $43,000, expected net cash inflows…

A: We can find the internal rate of return for a stream of constant cash flows using RATE function of…

Q: NPV and IRR Benson Designs has prepared the following estimates for a long-term project it is…

A: Net present value is the technique used in capital budgeting to evaluate the acceptability of the…

Q: A project has an initial cost of $65,000, expected net cash inflows of $12,000 per year for 8 years,…

A: The NPV of a project is a measure of its profitability. It uses the concept of TVM to discount the…