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- Firm Xy has an investment project with annual cash flows of 20,000, 18,500, 21,500, and 12,350. The discount rate is 11.55%. What is the nominal payback period if the initial cost is 31,000? what is the discounted payback period if the initial cost is $24,000?ABC Company is using net present value analysis at various discount rates in order to determine the internal rate of return of an investment proposal. NPV using a discount rate of 12 percent = $2,095 NPV using a discount rate of 14 percent = $(2,108) By interpolating these results, an approximate internal rate of return on the investment is estimated to be percent. (Round your answer to the nearest whole percentage.)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.
- Below are the NPVs of a particular investment at two discount rates: At 5%, NPV = $9,500 At 8%, NPV = -$500 Estimate the IRR of this investment. Group of answer choices 1. 6.85% 2. 7.85% 3. 6.50% 4. 5.55%You are considering an investment project with the cash flows of -300 (the initial cash flow), 800 (cash flow at year 1), -200 (cash flow at year 2). Given the discount rate of 10%, compute the Modified Internal Rate of Return (MIRR) using the discountingapproach. 19.72% 71.94% 37.52% 50.55%An investment that requires $3000 initial investment will return $1000 at the end of first year, $2000 at the end of second year, and $3000 at the end of third year. Assume the discount rate is continuously compounded at 10%.What is the Net Present Value of the investment
- An investment under consideration has a payback of seven years and a cost of €724,000. Assume the cash flows are conventional. Requirement 1: If the required return is 12 per cent, what is the worst-case NPV?An investment under consideration has a payback of seven years and a cost of $685,000. Assume the cash flows are conventional. If the required return is 11 percent, what is the worst-case NPV? What is the best case NPV?Which of the following two investment opportunities is preferred if you have a discount rate of 14%, and why? Investment A: Costs 409 SEK today and provides a positive cash flow of 82 SEK per year forever. Investment B: Costs 580 SEK today and provides a positive cash flow of 95 SEK per year forever. (Answers are rounded to integers) a) Investment A is preferred because it has an NPV of 177 b) Investment B is preferred because it has the highest NPV of 99 c) Both investments are equally good d) Investment B is preferred because it has a higher annual cash flow of 95. e) Investment A is preferred because it has the lowest initial cost of 409.
- d. If the required return is 8 percent, what is the NPV for project B? e. At what discount rate would the company be indifferent between these two projects?You have the opportunity to make an investment that costs $1.000,000. If you make this investment now, you will receive $250,000 one year from today, $200,000, $150,000 and $ 400,000 two and three years from today, respectively. The appropriate discount rate for thisinvestment is 11 percent. .a. Should you make the investment?b. What is the net present value (NPV) of this opportunity?c. If the discount rate is 10 percent, should you invest? Compute the NPV to support youranswer.The project NPV is 14.95. The initial investment 15m. The discount rate is 4.5% per annum. What is the Return on Capital and the Payback Period? In case you need additional information let me know.