Please correct answer and don't used hand raiting * Your answer is incorrect.What is the NPV for a project with an after-tax initial investment of $19600 and five equal cash flows of $10100 at the start of eachyear, beginning with the fourth year? The appropriate discount rate is 20 percent. Should it be accepted?$1375.82; accept●-$2120.15; rejectO $10605.18; acceptO $5570.99; accept

Step 1: Given Value for Calculation Initial Investment = i = $19,600Number of Payment = 5Cash Flow =…

Answered: * Your answer is incorrect. What is the…

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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A project that provides annual cash flows of $11322 for eight years costs $80145 today. At what discount rate would you be indifferent between accepting the project and rejecting it? (Enter your answer as a percentage, omit the "%" sign in your response, and round your answer to 2 decimal places. For example, 0.12345 or 12.345% should be entered as 12.35.)
Suppose an investment has an initial capital cost of $1100, an ongoing cost of $6.50 per year and an annual benefit of $80. If the project lasts for 20 years and the discount rate is 7%, the internal rate of return is: Provide your answer in percentage form (e.g. an IRR of 17.66% should be entered as 17.66) to 2 decimal places. Do not include any $ or % 's in your response.
A project has cash flows of –$148,000, $43,000, $87,000, and $44,000 for Years 0 to 3, respectively. The required rate of return is 11 percent. Based on the internal rate of return of what percent for this project, you should accept or reject the project. Enter your answer in the first blank as a percent rounded to 2 decimal places, e.g., 32.16. Also enter either "accept" or "reject" in the second blank.
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Compute the payback statistic for Project B if the appropriate cost of capital is 11 percent and the maximum allowable payback period is three years. (If the project never pays back, then enter a "0" (zero).) Project B Time: 0 1 2 3 4 5 Cash flow: −$11,400 $3,390 $4,260 $1,600 $0 $1,080 Should the project be accepted or rejected?multiple choice accepted rejected
A project that will provide annual cash flows of $3,100 for nine years costs $10,400 today. At what discount rate would you be indifferent between accepting the project and rejecting it? Discount rate _________%
An investment project costs $19,000 and has annual cash flows of $5,100 for six years. a. What is the discounted payback period if the discount rate is zero percent? (Enter O if the project never pays back. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the discounted payback period if the discount rate is 5 percent? (Enter O if the project never pays back. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the discounted payback period if the discount rate is 19 percent? (Enter O if the project never pays back. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Discounted payback period years b. Discounted payback period years c. Discounted payback period years
If the local government invests in a project which has a 20 years useful life, and an initial investment of 2.25 million dollars and the yearly benefit is $250,000, with a maintenance cost (starting in year 1) of $50,000, is there sufficient information to solve this problem for the inflation rate? T/F? Don't answer by pen paper and don't use chatgpt otherwise we will give dounvote
Compute the payback statistic for Project A if the appropriate cost of capital is 7 percent and the maximum allowable payback period is four years. (Round your answer to 2 decimal places.) Project A Time: 0 1 2 3 4 5 Cash flow: −$2,300 $870 $870 $780 $560 $360 Should the project be accepted or rejected?multiple choice accepted rejected

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