A project that provides annual cash flows of $20,000 for 6 years costs $63,000 today. Determine the IRR for this project. Show answer using excel function.

Q: An independent project has a net investment of $250,000, and generates net cash flows of $90,000 for…

A: Calculation of Net present value of the project: Answer: Net present value is $19,155.09

Q: Project A costs $1,000, and its cash flows are the same in Years 1 through 10. Its IRRis 16%, and…

A: INITIAL INVESTMENT = 1000 IRR= 16% WACC = 8%

Q: Suppose that cash flows of a project are given as follows: Year 0: Costs: $150,000. Year 1: Costs:…

A: Payback Period - It is the duration of the project life within which the initial investment is…

Q: In a 3-year capital project, cash revenues are expected to increase by $120.000 and cash operating…

A: In this we have to find out tax sheild of depreciation and increase in cash flow.

Q: The Smith Company is proposing to spend $3,195,400 on a project that has estimated net cash flows of…

A: Net present value (NPV) is the value of all the cash flow of the investment (positive and negative)…

Q: A project has the following cash flows; cost =10,000, years 1-5 incoming cash flows are $5,000 each,…

A: Present values of cashflows = cashflow for each year/(1+ WACC)^time For year 1: PV = 5000/(1+0.1)^1…

Q: A project has estimated annual net cash flows of $54,000. It is estimated to cost $270,000.…

A: Formula to calculate payback period :Payback period = Inital investment / Annual net cash flows

Q: A project has estimated to cost $54,035. and provide annual net cash flows of $12,000 for 8 years.…

A: The provided information are: Initial cost estimated = $54,035 Annual net cash flow = $12,000 Term =…

Q: Consider the following four-year project. The initial outlay or cost is $180,000. The respective…

A: Working note:

Q: Project A costs $67,775, its expected net cash inflows are $10,000 per year for 10 years, and its…

A:

Q: Suppose a project costs $2,200 and produces cash flows of $640, $800 and $1,900 in each of the first…

A: IRR can be calculated by following function in excel   IRR can be calculated by following function…

Q: An investment project provides cash inflows of $1,100 per year for eight years.     a. What is the…

A: Payback period is a technique used in Capital budgeting to calculate the time taken by an investment…

Q: Determine the exact ROR for this project.

A: Internal rate of return (IRR) of an alternative refers to the rate at which the Net present value…

Q: cost of a project is $50,000 and it generates cash inflows of $20,000, over four years. Calculate…

A: Payback period is the no. of years required to recover the initial amount invested.

Q: A project that provides annual cash flows of $11,200 for 20 years costs $175,000 today. What is the…

A: The profitability index can be calculated as the ratio of present value of cash inflows and initial…

Q: $25,500 today will generate cash flows of $8,800 per year for seven years. What is the project's…

A: Payback period is the no. of years required to recover the initial amount invested.

Q: A project has estimated annual net cash flows of $50,600. It is estimated to cost $288,420.…

A: Calculate the payback period as follows: Payback period = Initial investment / Net cash inflows

Q: A project has estimated annual net cash flows of $59,700. It is estimated to cost $370,140.…

A: The time taken by an entity to recover the initial cost of an investment is known as payback period…

Q: Project A as well as project B require an initial investment of $1,050,000, have a 6-year life, and…

A: The cash payback period refers to the capital budgeting technique which tells in how many…

Q: A project has estimated annual net cash flows of $69,900. It is estimated to cost $817,830.…

A: Cash payback period = Initial investment / annual net cash flows

Q: Projects A, B, and C each have an expected life of five years. Cash flows are as follows: Project t0…

A: Payback period is a capital budgeting method.  payback period is the time in which the initial…

Q: A project has estimated annual net cash flows of $66,600. It is estimated to cost $466,200.…

A: The payback period is the estimated period in which the investment is expected to be returned fully.…

Q: A project has estimated annual net cash flows of $65,700. It is estimated to cost $762,120.…

A: Cash payback period - Cash payback period = Initial investment/ cash flows per year    Cash payback…

Q: For each of the following projects, determine the relevant cash flows, and depict the cash flows on…

A: Given, a) Initial investment = $(120,000)     Annual operating cash inflow = $25,000     Annual cash…

Q: A projects is being considered by XYZ Co. Detailed cash flows for this project are: Project initial…

A: The internal rate of return is a determination of the return on investment that balances and equals…

Q: A project has estimated annual net cash flows of $36,500. It is estimated to cost $222,650.…

A:

Q: A five-year project is expected to generate annual revenues of $159,000, variable costs of $72,500,…

A: To find the annual operating cash flow, we will follow these steps: Sales…

Q: 0 today will generate cash flows of $8,000 per year for seven years. What is the project's payback…

A: Payback period is the no. of years required to recover the initial amount invested.

Q: A project has estimated annual net cash flows of $63,800. It is estimated to cost $740,080.…

A: Calculation of Cash payback period is to find the time required to recover the initial investment in…

Q: An Investment project provides the cash flow inflows of $615 per year for 8 years. a) What is the…

A: a)Calculation of project payback period:

Q: A constructed bridge requires no upkeep until the end of 2 years when P60,000 will be needed for…

A:

Q: An investment project provides cash inflows of $950 per year for eight years. a. What is the project…

A: Payback period is the period in which the initial investment is recovered by the entity. Shorter the…

Q: A project has estimated annual net cash flows of $24,500. It is estimated to cost $147,000.…

A: Cash payback period represents the estimated time to recover the costs incurred on a project.

Q: st of a project is $50,000 and it generates cash inflows of $20,000, over four years. Calculate IRR…

A: IRR or Internal rate of return can be computed using IRR function in excel.

Q: A project with an initial outlay of $400 has an economic life of 5 years.  The project after-tax…

A: The internal rate of return refers to a matrix used for determining the probability of the…

Q: A project has estimated to cost $64,025. and provide annual net cash flows of $15,000 for 6 years.…

A: Given: Initial cost estimated = $64,025 Annual net cash flow = $15,000 Term = 6 years

Q: A project has an initial cost of $40,000, expected net cash inflows of $9,000 per year for 7 years,…

A: Solution:- We know, Net Present value (NPV) means the net present value of cash inflows after…

Q: A 7-year project is expected to provide annual sales of $221,000 with costs of $97,500. The…

A: GIVEN, WORST SCENARIO accuracy = +/-15% annual sale= $221,000 x (1-0.15)= $187,850 annual cost =…

Q: Project L costs $65,000, its expected cash inflows are $12,000 per year for 9 years, andits WACC is…

A: A discount rate at which the net present worth of an investment is equal to zero is term as internal…

Q: A project has an initial cost of $45,000, expected net cash inflows of $10,000 per year for 8 years,…

A: Initial cost of project = $ 45000 Annual cash inflow = $ 10,000 Period = 8 Years Cost of capital =…

Q: A project is estimated to cost $251,272 and provide annual net cash flows of $56,000 for eight…

A: Internal rate of return is a technique which define rate of return earned by a project for a period.

Q: ost of a project is $50,000 and it generates cash inflows of $20,000, over four years. Calculate…

A: NPV or Net present value can be computed using NPV function in excel.

Q: What is the Profitability Index of a project that costs $28,000 today and is expected to generate…

A: Present value of all the cash inflows is the present value annuity of $3000 for 11 years at 7%.…

Q: Calculate the payback period

A: Payback period is the number of period in which the aount invested shall be recovered through income…

Q: A project has estimated annual net cash flows of $52,700. It is estimated to cost $590,240.…

A: The term "payback period" describes the length of time needed to recover an investment's cost. In…