Your required rate of return is 10 percent. If you invest $3,000 today you will receive the following cash flows from year 1 to 4: 2000, 500, 1000, 2000. Calculate the Discounted Payback Period of the project. 3.7 years 3.9 years 3.1 years 3.5 years 3.3 years

Your required rate of return is 10 percent. If you invest $3,000 today you will receive the following cash flows from year 1 to 4: 2000, 500, 1000, 2000. Calculate the Discounted Payback Period of the project. 3.7 years 3.9 years 3.1 years 3.5 years 3.3 years

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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Question

Your required rate of return is 10 percent. If you invest $3,000 today you will receive
the following cash flows from year 1 to 4: 2000, 500, 1000, 2000. Calculate the
Discounted Payback Period of the project.
3.7 years
3.9 years
3.1 years
3.5 years
3.3
3 years

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Project A costs $5,300 and will generate annual after-tax net cash inflows of $1,900 for five years. What is the NPV using 5% as the discount rate? Round your present value factor to three decimal places and final answer to the nearest dollar. (Click here to see present value and future value tables) 2,928 x
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1. You are evaluating a project that will require an initial investment of $350. Over the next four years, the project is expected to generate after-tax cash flows of 22, 34, 41, 46. If 6% is your appropriate discount rate, what is the IRR of this project to the nearest hundredth (.01)? -19.06% 0.18% 3.83% -25.79%

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