Project Alpha requires an initial outlay of $500,000 and has a profitability index of 1.5. The project is expected to generate equal annual cash flows over the next twelve years. The required return for this project is 18%. What is project Alpha’s net present value? Round to the nearest 1,000.     $165,000     $170,000     $185,000     $200,000

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A: NPV. Net present value (NPV)   is calculated by deducting initial investment from present value of…

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A: Net Present Value (NPV) = Present Value of Cash Inflows - Initial Investment

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A: Initial cost = $ 57,954 Annual cash flow = $ 11000 Period = 8 Years

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A: Net Present Value: It refers to the project's or investment's profitability in absolute terms. It…

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A:

Q: A.   Project L requires an initial outlay at t = 0 of $55,000, its expected cash inflows are…

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Q: 2. Project L requires an initial outlay at t = 0 of $43,354, its expected cash inflows are $9,000…

A: Using the IRR function in Excel

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A: Profitability index: Profitability is computed by dividing the present value of cash inflow to…

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A: Present value is the sum of future cashflows discounted at discount rate

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A: Step 1Given informationStep 2Step 3 : Step 4

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A: IRR means internal rate of return. It is computed by following formula:-IRR = lower rate + 2. NPV…

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Q: margin of $6, projected fixed cos ost per unit of $ 12, and a projected present value break-eve…

A: Note : As per the guidelines, only first question will be answered. Kindly post the remaining parts…

Q: 16

A: Calculation of the NPV (net present value) is shown below: Hence, the last option is correct.

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Q: What is the project's IRR? Round your answer to two decimal places. ______ %

A: IRR (Internal Rate of Return)IRR is the discount rate at which the net present value (NPV) of cash…

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Q: What is the net present value of a project

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A: IRR is also known as Internal Rate of Return.. It is a capital budgeting technique which helps in…

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