Suppose you are the financial manager of a firm considering the following five projects. Show formulas and work, without the use of excel or a financial calculator. Project A Project B Project C Project D Project E Initial Investment -$10,000 -$15,000 -$14,000 -$6,000 -$1,500 Year 1 $5,000 $5,000 $6,000 $4,000 $1,000 Year 2 $4,000 $5,000 $4,000 $2,000 $250 Year 3 $2,000 $5,000 $3,500 $2,000 $100 Year 4 $1,000 $5,000 $2,500 $2,000 $100 Year 5 $5,000 $2,000 $100 Year 6 $2,000 $100 Calculate the NPV for each project, assuming a discount rate of 11%.
Suppose you are the financial manager of a firm considering the following five projects. Show formulas and work, without the use of excel or a financial calculator. Project A Project B Project C Project D Project E Initial Investment -$10,000 -$15,000 -$14,000 -$6,000 -$1,500 Year 1 $5,000 $5,000 $6,000 $4,000 $1,000 Year 2 $4,000 $5,000 $4,000 $2,000 $250 Year 3 $2,000 $5,000 $3,500 $2,000 $100 Year 4 $1,000 $5,000 $2,500 $2,000 $100 Year 5 $5,000 $2,000 $100 Year 6 $2,000 $100 Calculate the NPV for each project, assuming a discount rate of 11%.
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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Suppose you are the
|
Project A |
Project B |
Project C |
Project D |
Project E |
|
|
Initial Investment |
-$10,000 |
-$15,000 |
-$14,000 |
-$6,000 |
-$1,500 |
|
Year 1 |
$5,000 |
$5,000 |
$6,000 |
$4,000 |
$1,000 |
|
Year 2 |
$4,000 |
$5,000 |
$4,000 |
$2,000 |
$250 |
|
Year 3 |
$2,000 |
$5,000 |
$3,500 |
$2,000 |
$100 |
|
Year 4 |
$1,000 |
$5,000 |
$2,500 |
$2,000 |
$100 |
|
Year 5 |
|
$5,000 |
$2,000 |
|
$100 |
|
Year 6 |
|
|
$2,000 |
|
$100 |
- Calculate the NPV for each project, assuming a discount rate of 11%.
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