Net present value Using a cost of capital of 12%, calculate the net present value for the project shown in the following table and indicate whether it is acceptable,The net present value (NPV) of the project is $(Round to the nearest cent.)xtLibraialculatesource Enter your answer in the answer box and then click Check Answer.Study1partremainingCheck AnswerClear Allication Tools >Type here to search a cost of capData Table-XwhetheV) of the proj(Click on the icon here in order to copy the contents of the data table below intoa spreadsheet.)Initial investment (CF,)- 1,153,000Year (t)Cash inflows (CF,)$81,000$131,000$188,0001.3$252,000$319,000$377,000$273,000$95,000$45,000$22,0004.678e answer bOx10Check APrintDone

NPV is the sum of present value of future cashflows less initial investment

Net present value Using a cost of capital of 12%, calculate the net present value for the project shown in the following table and indicate whether it is acceptable, The net present value (NPV) of the project is $ (Round to the nearest cent.)

Net present value Using a cost of capital of 12%, calculate the net present value for the project shown in the following table and indicate whether it is acceptable, The net present value (NPV) of the project is $ (Round to the nearest cent.)

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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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

100%

Net present value Using a cost of capital of 12%, calculate the net present value for the project shown in the following table and indicate whether it is acceptable,
The net present value (NPV) of the project is $
(Round to the nearest cent.)
xt
Librai
alculat
esource Enter your answer in the answer box and then click Check Answer.
Study
1
part
remaining
Check Answer
Clear All
ication Tools >
Type here to search

a cost of cap
Data Table
-Xwhethe
V) of the proj
(Click on the icon here in order to copy the contents of the data table below into
a spreadsheet.)
Initial investment (CF,)
- 1,153,000
Year (t)
Cash inflows (CF,)
$81,000
$131,000
$188,000
1.
3
$252,000
$319,000
$377,000
$273,000
$95,000
$45,000
$22,000
4.
6
7
8
e answer bOx
10
Check A
Print
Done

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Consider cash flows for the following investment projects (MARR = 15 %). Suppose that projects are mutually exclusive. Which project would you select based on AE criterion? Project A -3000 Project B -3500 ProjectC 4000 1400 1100 1500 2. 1650 1000 1500 3. 1300 1000 1800 1800 4 750 1000
h
A permanent (life = infinity) project has the following estimates: First cost = -20 M, Annual cost = - 4 M, and Annual revenue = 8 M. At MARR = 10%, the annual worth of the project equals:

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