Question Status: This is a two-part question. 4?5? ? ? ? ? 8:45 PM 10. 12. 13. 14. 15 16. 17 18. 19 20. Scotch can expand a successful manufacturing line for an immediate investment of $49 million. The company anticipates that the project will generate a cash flow of $179 million in 8 years (and only in that one year). The company considers the required rate of return of the project to be 10.49% PART 1. Calculate the project's internal rate of return: % Notes on Formatting: Place your answer in PERCENTAGE form with two decimal places of accuracy. For example, if your answer is thirteen point seventy five percent, then place your answer as 13.75 and NOT as .1375. NOW GO ON TO THE SECOND PART! PART 2. Given your estimate of the IRR, should Scotch accept or reject the project? Type the word "accept" if you believe they should go ahead with the project or the word "reject" if you believe they should not go ahead with the project.

This is a two-part question. Scotch can expand a successful manufacturing line for an immediate investment of $91 million. The company anticipates that the project will generate a cash flow of $172 million in 10 years (and only in that one year). The company considers the required rate of return of the project to be 12.60% PART 1. Calculate the project's internal rate of return: % Notes on Formatting: Place your answer in PERCENTAGE form with two decimal places of accuracy. For example, if your answer is thirteen point seventy five percent, then place your answer as 13.75 and NOT as .1375. NOW GO ON TO THE SECOND PART! PART 2. Given your estimate of the IRR, should Scotch accept or reject the project? Type the word "accept" if you believe they should go ahead with the project or the word "reject" if you believe they should not go ahead with the project.

Salt Lake Potash is considering a project with the following cash flows. An initial investment of $1.025bn is required for the project. The discount rate is 9%. The company wants to calculate how long it would take investors to recover their initial investment. The company does not want to ignore the effects of time value of money and the discount rate. Year O CF ($mn) -$1,025 1.83 years 2.26 years What is your best estimate of the time to recovery? $159.79mn 1 2 $650 $450 19.9% 3 $250 4 $50

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How do I work out the net present value? Thank you :)

Ariake Inc. is considering a major expansion of its product line and has estimated the following free cash flows associated with such an expansion. The initial outlay would be $1,850,000, and the project would generate incremental free cash flows of $400,000 per year for 7 years. The appropriate required rate of return is 8 percent. a. Calculate the NPV b. Calculate the PI c. Calculate the IRR d. Should the project be accepted? Why? (*You must show your calculation process as well.)

You are considering an investment opportunity that requires an initial investment of​ $150 million in period 0. The project will generate only one future payment of​ $168 million at the end of the first year. The cost of capital is​ 8% . What is the IRR for the​ project? ​ [Note that getting the actual value should not require trial and error or a financial​ calculator, because this is a simple​ case.]     A. ​114%   B. ​8%   C. ​20%   D. ​12%   E. ​10.7%   F. ​5.6%   G. ​14%   H. ​112%

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M1..     Industrialization Enterprise is considering a three-year project that will require an initial investment of $44,000. If market demand is strong, Industrialization Enterprise thinks that the project will generate cash flows of $28,500 per year. However, if market demand is weak, the company believes that the project will generate cash flows of only $1,500 per year. The company thinks that there is a 50% chance that demand will be strong and a 50% chance that demand will be weak. If the company uses a project cost of capital of 14%, what will be the expected net present value (NPV) of this project? (Note: Do not round intermediate calculations and round your answer to the nearest whole dollar.) -$9,176 -$8,258 -$7,800 -$11,011 Industrialization Enterprise has the option to delay starting this project for one year so that analysts can gather more information about whether demand will be strong or weak. If the company chooses to delay the project, it will have to give up a year of…

A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows: Cash Flow -$41,000 20,000 23,000 14,000 Year 2. 3. If the required return is 14 percent, what is the IRR for this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) IRR Should the firm accept the project? О Аccept CO Reject