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 F. The appropriate cost of capital is 12 percent. Note: Do not round intermediate calculations and round your final answer to 2 decimal places. Project F Time: 01234 Cash flow: -$11,000 $ 3,350 $ 4,180 $ 1,520 $2,000 Should the project be accepted or rejected?
Compute the NPV statistic for Project Y if the appropriate cost of capital is 11 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 Y Time: 0 1 2 3 4 Cash flow: −$8,200 $3,670 $4,500 $1,840 $620
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Year 0 ($100,000)-Project Outlay (The bracket indicates a negative figure) Year 1 Year 2 Year 3 Year 4 Year 5 $ 18,000 $ 18,000 $18,000 $18,000 $ 18,000 Assume that cash flows are reinvested at the rate of 10%, compounded annually. Calculate the Modified Internal Rate of Return (MIRR) on this project. (Note that n=5) a 18.96% b 18% c 15.98% d 19.2%
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
Give typed solution only What is the internal rate of return of a project costing $3,000; having after-tax cash flows of $1,500 in each of the two years of its two-year life; and a salvage value of $800at the end of the second year in addition to the $1,500 cash flow? (rounded to the nearest percentage) A. 13% B. 15% C. 16% D. 19%
Compute the NPV statistic for Project U if the appropriate cost of capital is 10 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Project U Time: |1 3 4 Cash |-$1,000 $350 $1,480 -$520 $300 |-$100 flow:
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
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NPV and EVA A project cost $3.2 million up front and will generate cash flows in perpetuity of $270,000. The firm's cost of capital is 8%. a. Calculate the project's NPV. b. Calculate the annual EVA in a typical year. c. Calculate the overall project EVA. a. The project's NPV is $. (Round to the nearest dollar.) ibra culat ource Enter your answer in the answer box and then click Check Answer. Check Ans udy Clear All 2 parts remaining Lation Tools> pe here to search
Consider the following project balances for a typical investment project with athe service life of five years: (a) Fill in the blanks by constructing the original cash flows of the project anddetermining the terminal balance.(b) Determine the interest rate used in the project-balance calculation, andcompute the present worth of this project at the computed interest rate.
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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