Question 3 1 12 LXX Q3.) You are a financial analyst for Instavans Company. The director has asked you to analyse the proposed capital investment on a new project. The project has cost of 10,000 and the cost of capital for the project is 12%. Evaluate the project's financial feasibility by estimating MIRR. The project's expected net cash flow are given below. Year 3 . ... ... ... .. ... .... Revisit Later Cash flows 6500 3000 3000 1000 Attempted:

Question 3 1 12 LXX Q3.) You are a financial analyst for Instavans Company. The director has asked you to analyse the proposed capital investment on a new project. The project has cost of 10,000 and the cost of capital for the project is 12%. Evaluate the project's financial feasibility by estimating MIRR. The project's expected net cash flow are given below. Year 3 . ... ... ... .. ... .... Revisit Later Cash flows 6500 3000 3000 1000 Attempted:

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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1. A project has an initial cost of 40,000. The future cash flows are 5,500, 15,200, -3,600, and 32,000 for year 1 to 4 respectively. How many IRRs will this project have? a. 3 b. 1 c. 4 d. 0
Nn1. Account
Q4 Two new projects are proposed to a company. The Project A will cost $200,000 to develop and is expected to have annual cash flow of $90.000. The Project B will cost $ 250,000 to develop and is expected to have annual cash flow of $100,000. The company is very concerned about their cash flow. Using the NPV and Payback period, which project is better from a cashflow standpoint? r=10y.
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QUESTION 2 You expect to receive $100 in year 1, $150 in year 2, and $200 in year 3 if you invest in Project XYZ. The project requires you to make an initial investment of $150 in year 0. You also expect to incur the following expenses: $80 in year 1, $80 in year 2, $100 in year 3. Suppose the current discount rate is 10% and remain the same. Suppoe all cash flows are incurred at the end of each year. What is the dynamic payback period? (round to 2nd decimal place)
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Use python to answer the following question: Question 5 A capital investment in an equipment with an upfront cost of $23,540 will provide you with the following annual cash flow stream (paid end of year): 1. $2,000 2. $1,456 3. $3,230 4. $6,850 5. $2,384 6. $1,234 7. $5,987 8. $4,190 The project will incur the following cost for maintenance and repair (paid end of year): Year 3: ($2,984) Year 4: ($1,837) Year 6-8: ($2,000) Calculate the NPV of the investment and comment on whether you should invest in the project. Why or why not? What is the IRR of the investment? The required rate of return is 3.5%.
Problem #2: Consider an investment where the cash flows are: - $920.33 at time 1 = 0 (negative since this is your initial investment) S407 at time = 1 in years $222 at time = 2 in years $426 at time = 3 in years (a) Use Excel's "Solver" to find the internal rate of return (IRR) of this investment. Take a screen shot showing Solver open with your entries for the function clearly visible. Paste the screen shot into an application (like Paint), and save it as a (.png) file. Upload your screenshot below. (b) What is the value of IRR found by Solver?
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