A given project requires an initial investment of 29800 in order to collect the following cash flows: 11900 in f=1, 12100 in t32 and 12300 in t=3. The 40% of the initial investment is supported with external funds. The debt has to be fully repaid at the end of the second year at the annual compound rate 9,8%. The opportunity cost of capital is 4,6%. Using WACC method, which is the value of the project? (answer with two decimals)
A given project requires an initial investment of 29800 in order to collect the following cash flows: 11900 in f=1, 12100 in t32 and 12300 in t=3. The 40% of the initial investment is supported with external funds. The debt has to be fully repaid at the end of the second year at the annual compound rate 9,8%. The opportunity cost of capital is 4,6%. Using WACC method, which is the value of the project? (answer with two decimals)
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 10P
Related questions
Question
100%
Can you give me the complete solution pls?
Transcribed Image Text:A given project requires an initial investment of 29800 in order to collect the following cash flows: 11900 in f=1, 12100 in t=2 and
12300 in t=3. The 40% of the initial investrment is supported with external funds. The debt has to be fully repaid at the end of the second
year at the annual compound rate 9,8%. The opportunity cost of capital is 4,6%. Using WACC method, which is the value of the
project?
(answer with two decimals)
DOMANDA 2
A project requiring an initial investment of 5030 offers the following cash flows: 1950 at t=1, 2000 at t=2 and 3800 at t=3. The decision-
maker estimates that the opportunity cost of capital for the first year is h(0,1)=2,3%, for the second year is h(1,2)=3% and for the third
year is h(2,3)=3,4%. Which is the GNPV of the project?
(answer with two decimals)
Fare clic su Salva e conferma per salvare e confermare. Fare clic su Salva tutte le risposte per salvare tutte le risposte.
SALVA TUTTE LE RISPOST
Transcribed Image Text:Given a final value M, related to an investment of 4 years and 9 months, if the present value is equal to 86% of M, which is the bank
discount rate applied.
(Write the result in a percentage form, without %, using two decimals)
DOMANDA 6
On the market the price quoted today for a ZCB maturity 6 months is 98,5. The forward price payable 6 months from today for a ZCB
maturity 1 year (from today) is 98,2. The forward price payable 1 year from today for a ZCB maturity 1.5 years (from today) is 97,7. Whic
h is the price of a coupon bond, face value 100, maturity 1,5 years, semi annual coupon at the annual coupon rate of 3,3%?
(answer with two decimals)
Fare clic su Salva e conferma per salvare e confermare. Fare clic su Salva tutte le risposte per salvare tutte le risposte.
SALVA TUTTE LE RISPOSTE
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning