Project L costs $50,000, its expected cash inflows are $13,000 per year for 7 years, and its WACC is 12%. What is the project's NPV? Round your answer to the nearest cent. Do not roundyour intermediate calculations.Click here to read the eBook: Net Present Value (NPV)NPVبین

Given Initial cost = $50,000Annual cash inflow(CtC_tCt) = $13,000Cost of capital = 14% or…

Answered: Project L costs $50,000, its expected…

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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You have an opportunity to invest $104,000 now in return for $79,800 in one year and $29,600 in two years. If your cost of capital is 9.2%, what is the NPV of this investment? Question content area bottom Part 1 The NPV will be $XX enter your response here . (Round to the nearest cent.)
Jones expects an immediate investment of $73,759.50 to return $15,000 annually for six years, with the first payment to be received one year from now. What rate of interest must Jones eam? (PV of $1. EV of $1. PVA of $1. and EVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) Table Factor Interest Rate Present Value Annuity Payment
Ofice eBook Project L costs $55,000, its expected cash inflows are $13,000 per year for 12 years, and its WACC is 11%. What is the project's NPV? Do not round intermediate calculations. Round your answer to the nearest cent. $
eBook A project has annual cash flows of $4,000 for the next 10 years and then $8,500 each year for the following 10 years. The IRR of this 20-year project is 10.99%. If the firm's WACC is 10%, what is the project's NPV? Do not round intermediate calculations. Round your answer to the nearest cent.
am. 144.
A project that costs $2,300 to install will provide annual cash flows of $730 for each of the next 5 years. a. Calculate the NPV if the opportunity cost of capital is 12%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) NPV b. Is this project worth pursuing? Yes O No c. What is the project's internal rate of return IRR? (Do not round intermediate calculations. Round your answer to 2 decimal places.) %24
You are considering investing in a project with an initial outlay of $50,000 and the following year end net cash flows; Yr1: $17,000, Yr2: $17,000, Yr3: $12,000, Yr4: $12,000, Yr5: $9,000. Calculate the project’s IRR Group of answer choices 14% 13% 12% 11%
Project A costs $5,300 and will generate annual after-tax net cash inflows of $1,900 for five years. What is the NPV using 5% as the discount rate? Round your present value factor to three decimal places and final answer to the nearest dollar. (Click here to see present value and future value tables) 2,928 x
9. Problem 11.02 (IRR) dofice eBook Project L costs $54,779.63, its expected cash inflows are $13,000 per year for 8 years, and its WACC is 11%. What is the project's IRR? Round your answer to two decimal places. %
Tom Thompson expects to invest $18,000 at 9% and, at the end of a certain period, receive $92,551. How many years will it be before Thompson receives the payment? (PV of $1. FV of $1. PVA of $1. and EVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) Future Value $ 92,551 Present Value $ 18,000 = Table Factor Years years
An investor is considering two investment projects. Project A requires an initial payment of £15,000. In return, the investor will receive a payment of £19,600 after one year. Project B requires an initial payment of £10,700. In return, the investor will receive a payment of £1,210 at the end of every month for one year. Calculate the cross-over rate of the projects 数字 Enter a percentage correct to 1 decimal place. % What is the payback period of each project? Project A: Project B:数字 months months
3. Problem 11.03 (MIRR) eBook Problem Walk-Through Project L requires an initial outlay at t = 0 of $55,000, its expected cash inflows are $13,000 per year for 9 years, and its WACC is 9%. What is the project's MIRR? Do not round intermediate calculations. Round your answer to two decimal places. BE %

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Project L costs $50,000, its expected cash inflows are $13,000 per year for 7 years, and its WACC is 12%. What is the project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations. Click here to read the eBook: Net Present Value (NPV) NPV بین