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Q: aput turm Iollowing investment A Year Cash Flow - $8000 2 2600 2600 4 2600 5 2600 1. 3.
A: Solution- Year Cash Flow 0 -$8000 1 0 2 2600 3 2600 4 2600 5 2600
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- Q3) 3. The company will invest $150,000 in a project and average annual income $50,000. The investment will provide the following inflows: Year Cash inflow 1 $ 25,000 2 45,000 3 30,000 4 50,000 5 70,000 Calculate: Accounting rate of return Internal Rate of Return at 10% and 15% discount factor.7. Assume a company is going to make an investment of $300,000 in a machine and the following are the cash flows that two different products would bring in years one through four. The company's required rate of return is 12%. Option A Option B Product A Product B $190,000 $150,000 190,000 180,000 60,000 60,000 20,000 70,000 Using the appropriate EXCEL spreadsheet in the Chapter11 NPV IRR Analysis.xlsx Download Chapter11 NPV IRR Analysis.xlsx, answer the following questions: What is the NPV for Option A? What is the NPV for Option B? What is the IRR for Option A? What is the IRR for Option B? PLEASE NOTE #1: The dollar amounts will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67). Round your IRR answers, in percentage format, to two decimal places (i.e. 12.34%). Given the above answers, which project should the…Q3) 3. The company will invest $150,000 in a project and average annual income $50,000. The investment will provide the following inflows: Year Cash inflow 1 $ 25,000 2 45,000 3 30,000 4 50,000 5 70,000 Calculate: Net present value at 10% discount factor. Payback period
- 4. What is the internal rate of return for a project that has a net investment of $14,600 (Time 0 outflow) and a single net cash flow of $25,750 in 6 years? Use excel formulaFix=sum(D3:D9) Based on the risk of each project, the company has a required rate of return of 11%. -800,000, 220,000, 265,000, 292,000, 317,000What amount of cash must be invested today in order to have $60,000 at the end of one year assuming the rate of return is 9%? (Do not round your PV factors.)A. $54,600.00B. $45,454.56 C. $55,045.88 D. $54,000.00
- 3. What is the internal rate of return for a project that has a net investment of $14,600 (Time 0 outflow) and a single net cash flow of $25,750 in 5 years? Use excel formulasWhat is the internal rate of return for a project that has a net investment of $76,000 and net cash flows of $20,507 per year for 7 years? a. 18.2% b. 19% c. 16% d. 17%Excel Project and Excel Solution Ten annual returns are listed below.-19.9% 16.6% 18.0%-50.0% 43.3% 1.2%-16.5% 45.6% 45.2%-3.0% What is the arithmetic average return over the 10-year period? What is the geometric average return over the 10-year period? If you invested $100 at the beginning of the period, how much would you have at the end?
- Q1 (A). An investment of $100 produces rate of return as follows In year 1: a gain of 10 percent In year 2: a loss of percent In year 3: a loss of 8 percent In year 4: a gain of 3 percent. Calculate the value of the investment at the end of the fourth year and calculate the mean annual rate of return.Consider cash flows Year 0: -6900 Y1: 1700 Y2: 2900 Y3: 2900 Y4: 3500 What is the profitability index for this project if the return is 10%Consider the Following 10-year project: Year Cash Flow 0 -30000 1 2500 2 5000 3 6750 4 7000 5 7250 6 6000 7 6250 8 8000 9 3750 10 2000 What is the NPV of the project if the required rate of return is 12%? Would you accept it?