NPV Calculate the net present value (NPV) for a 20-year project with an initial investment of $40,000 and a cash inflow of $6,000 per year. The cost of capital is 13%. Comment on the acceptability of the project. The project's net present value is $ (Round to the nearest cent.) Is the project acceptable? (Select the best answer below.) ○ Yes Ο No

NPV Calculate the net present value (NPV) for a 20-year project with an initial investment of $40,000 and a cash inflow of $6,000 per year. The cost of capital is 13%. Comment on the acceptability of the project. The project's net present value is $ (Round to the nearest cent.) Is the project acceptable? (Select the best answer below.) ○ Yes Ο No

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter12: Capital Budgeting: Decision Criteria

Section: Chapter Questions

Problem 10P: Project S has a cost of $10,000 and is expected to produce benefits (cash flows) of $3,000 per year...

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Help NPV Calculate the net present value (NPV) for a 10-year project with an initial investment of $20,000 and a cash inflow of $6,000 per year. Assume that the firm has an opportunity cost of 18%. Comment on the acceptability of the project. The project's net present value is $ (Round to the nearest cent.) Тext ia Librai Calculat Resource Enter your answer in the answer box and then click Check Answer. Check Answer c Study 1 part remaining Clear All 10:27 PM unication Tools > 4/19/202 Type here to search insert fo 144
NPV Calculate the net present value (NPV) for a 30-year project with an initial investment of $45,000 and a cash inflow of $8,000 per year. Assume that the firm has an opportunity cost of 18%. Comment on the acceptability of the project. The project's net present value is $ (Round to the nearest cent.) Text ia Librai Calculat Resource Enter your answer in the answer box and then click Check Answer, Check Answer ic Study es Clear All part remaining unication Tools 10:11 4/19/ P Type here to search insert f10
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Give typed solution only XYZ is considering a 3-yr project. The initial outlay is -$120,000, annual cash flow is $50,000 and the terminal cash flow is $10,000. The required rate of return (cost of capital) is 15%. The net present value is $736.42. What if the annual cash flow increases to $56,000 instead? Re-calculate the NPV.
Please answer with explanations. Thx
Net present value Using a cost of capital of 15%, 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.) Is the project acceptable? (Select the best answer below.) O Yes No Data table (Click on the icon here in order to copy the contents of the data table below a spreadsheet.) Initial investment (CF) Year (0) 1 2 3 4 5 6 7 8 9 10 -1,156,000 Cash inflows (CF) $75,000 $140,000 $192,000 $254,000 $313,000 $378,000 $271,000 $97,000 $49,000 $26,000
Net present value Using a cost of capital of 14%, 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.) Is the project acceptable? (Select the best answer below.) Data Table Yes No (Click on the icon here D in order to copy the contents of the data table below into a spreadsheet.) Initial investment (CF,) 1,140,000 Year (t) Cash inflows (CF,) $75,000 $138,000 $190,000 $250,000 $319,000 $380,000 $280,000 $102,000 $46,000 $25,000 1 2 4 7 9 10 Click to select vour answer(s)
an.3 answer must be in proper format or i will give down vote
Suppose you have to choose between two mutually exclusive investment projects with the following cash flows (all numbers are in $1,000s): [image attached] Both projects have a discount rate of 9%. Determine the Payback Period, Net Present Value (NPV) and the IRR for each project. Which is the better project based on NPV? And how can you use the IRR criterion to obtain the correct (i.e., value maximizing) project choice? t=0 t = 1 t = 2 Project A -$400 $250 $300 Project B -$200 $140 $179 Skip Extension Tip: Double click to open in new tab
What is the profitability index for the project ?
Vipul b
You are considering the following two projects which are mutually exclusive. The required return on each project is 14%. Which project should you accept and what is the best reason for that decision? Year Project A Project B 0 $-46,000 $-46,000 1 $25,000 $11,000 2 $18,000 $19,000 3 $16,000 $32,000 a) Both Project A and B since they both have positive NPV b) Project A, because it has the higher profitability index c) Project A, because it has the higher net present value d) Project B, because it has the higher net present value