Supplying missing data: Fill in the blanks for each of the following independent projects. Assume in all cases the projecthas a useful life of 10 yearsProject Annual cash inflow$100,000$70,00012(e)(g)solve using formulas not excel34Initial investment$449,000(c)$200,000$300,000Cost of capital IRR NPV14%(a) (b)20% (d)14% $35,624(h) $39,00014%(f)12%

The solution requires use of formulaes applied to time value of money. They will be listed below as…

Supplying missing data: Fill in the blanks for each of the following independent projects. Assume in all cases the project has a useful life of 10 years Project Annual cash inflow 1 $100,000 $70,000 2 3 4 (e) (g) solve using formulas not excel Initial investment $449,000 (c) $200,000 $300,000 Cost of capital IRR 14% (a) (b) 20% (d) 14% $35,624 (h) $39,000 14% (f) 12% NPV

Supplying missing data: Fill in the blanks for each of the following independent projects. Assume in all cases the project has a useful life of 10 years Project Annual cash inflow 1 $100,000 $70,000 2 3 4 (e) (g) solve using formulas not excel Initial investment $449,000 (c) $200,000 $300,000 Cost of capital IRR 14% (a) (b) 20% (d) 14% $35,624 (h) $39,000 14% (f) 12% NPV

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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Compute the IRR statistic for Project E. The appropriate cost of capital is 8 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Project E Time: 0 1 2 3 4 5 Cash flow -$2,700 $830 $840 $760 $540 $340 IRR ces 25.49 % Should the project be accepted or rejected? O accepted O rejected
Compute the Pl statistic for Project Q if the appropriate cost of capital is 12 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Project Q Time: |1 2 3 14 Cash flow: |-$11,000 $3,350 $4,180 $1,520 $2,000
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Compute the IRR statistic for Project F. The appropriate cost of capital is 12 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Project F Time: Cash flow: IRR 0 -$11,000 1 $3,350 O accepted O rejected % 2 $4,180 Should the project be accepted or rejected? 3 $1,520 4 $2,000
The following data relates to an investment proposal: Investment in equipment Net annual cash inflow $32,000 5,000 expected Working capital required Salvage value of equipment Life of the project 8,000 2,000 10 years Working capital will be recovered at the end of the project's life. Using an 6% discount rate, the net present value of the project is closest to: $10,380 ($2,084) None of the other answers are correct $5,916 $2,380
3:Consider the following financial data for a project. 2- Find the (ROR) for the project.. We jus المصرر AP 1 = 10) b- If the the expense will increase by 10%, find the annual revenue that will make (POR-10%) Initial investment 18 000 CU Annual revenue 5000 CU Annual expense 3000 CU Salvage value 4500 CU Project life 12 YEARS
You Answered Some particulars for a project are as follows. Initial Capital Cost in year 0 ($Mn) Follow-up 'one-off' cost in year 1 ($Mn) Annual Operating Cost ($Mn/yr) Annual Benefits ($Mn/yr) Correct Answers Project Closure Cost, at end of project life ($Mn) Useful Life (years) Interest/Discount rate (percent) 1000 300 10% of capital cost 400 2,391 (with margin: 5) 200 20 7 What is the Life Cycle Cost of the project - expressed in present value term? (your answer must be rounded off to the nearest million dollars, i.e., no decimal places)
Compute the IRR statistic for Project E. The appropriate cost of capital is 9 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Project E Time: 0 1 2 3 4 5 Cash flow −$3,500 $1,150 $1,080 $920 $700 $500 Should the project be accepted or rejected?multiple choice rejected accepted
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Compute the NPV for Project M if the appropriate cost of capital is 9 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.) Project M Time in Years 0 1 2 3 4 5 Cash flow: -$3,500 $750 $880 $920 $1,000 $500
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