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A: The first 3 subdivisions are answered for you. Please resubmit specifying the question number you…
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A: Discount Rate = 15% Year Cash Flow - Replacement Cash Flow - Repair 0 -9000 -2400 1 3000…
Required:
Calculate the projects approximate payback period
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- The following project has cash flows as follows: Year Project A 0 -$705,000 1 $225,000 2 $421,500 3 $275,000 What is the IRR?The initial investment and after-tax cash inflows associated with these projects are shown in the following table. Cash flow Project A Project B Project C Initial Investment 100000 120,000 130,000 Year 1 Cash Inflows 30000 36,500 38000 Year 2 cash inflows 35000 45000 20000 Year 3 cash inflows 40000 40000 42000 Year 4 cash inflows 38000 35000 45000 Year 5 cash inflows 20000 30000 50000 Taking into consideration that the cost of debt 7% , cost of preferred stock 12% and cost of new common stock 15%. The weight of each source of capital are long term debt 30% , preferred stock 20% and common stock equity 50%. TO dO Create a spreadsheet to answer the following questions: a) Calculate the firm‘s cost of capital ( WACC) b) Calculate the payback period for each project. c) Calculate the net present value (NPV) of each project, d) Calculate the internal rate of return (IRR) for each project. e) Discuss any conflict in…The following table tracks the main components of working capital over the life of a four-year project. 2021 2022 2023 2024 2025 Accounts receivable 0 174,000 249,000 214,000 0 Inventory 87,000 142,000 142,000 107,000 0 Accounts payable 31,000 56,000 62,000 41,000 0 Calculate net working capital and the cash inflows and outflows due to investment in working capital.
- Company Rapid Growth is considering the following project: Year 0 1 2 3 4 5 Cash Flows -$89700 $10300 $25800 $33600 $38300 $56300 What's the payback period of the project?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 15% discount factor. Payback period Accounting rate of return Note: 15% discount factor : Year 15% discount factor 1 0.8696 2 0.7561 3 0.6575 4 0.5718 5 0.4972The following are a project's cash flows. Its cost of capital is 10% . What is the project's discounted payback? Year 0 1 2 3 Cash flows −$900 $500 $500 $500
- Given the following cash flows for project A: C0 = -1000, C1 = +600 ,C2 = +400, and C3 = +1500, calculate the payback period)Find the IRR for the following project assuming a WACC of 10%. Year Cash Flow 0 -20,000 1 8,000 2 10,000 3 4,000 4 5,000A Company is attempting to select the best of three mutually exclusive projects.The initial investment and after-tax cash inflows associated with these projects are shown in thefollowing table. Cash flow Project A Project B Project CInitial Investment 100000 120,000 130,000Year 1 Cash Inflows 30000 36,500 38000Year 2 cash inflows 35000 45000 20000Year 3 cash inflows 40000 40000 42000Year 4 cash inflows 38000 35000 45000Year 5 cash inflows 20000 30000 50000 Taking into consideration that the cost of debt 7%, cost of preferred stock 12% and cost of new common stock 15%. The weight of each source of capital are long term debt 30% , preferred stock 20% and common stock equity 50%. Create a spreadsheet to answer the following questions:a) Calculate the firm‘s cost of capital (WACC) "Answered Before"b) Calculate the payback period for each project. "Answered Before"c) Calculate the net present value (NPV) of each project,d) Calculate the internal rate of return (IRR) for each project.e)…
- A Company is attempting to select the best of three mutually exclusive projects.The initial investment and after-tax cash inflows associated with these projects are shown in thefollowing table. Cash flow Project A Project B Project CInitial Investment 100000 120,000 130,000Year 1 Cash Inflows 30000 36,500 38000Year 2 cash inflows 35000 45000 20000Year 3 cash inflows 40000 40000 42000Year 4 cash inflows 38000 35000 45000Year 5 cash inflows 20000 30000 50000 Taking into consideration that the cost of debt 7%, cost of preferred stock 12% and cost of new common stock 15%. The weight of each source of capital are long term debt 30% , preferred stock 20% and common stock equity 50%. Create a spreadsheet to answer the following questions:a) Calculate the firm‘s cost of capital (WACC)b) Calculate the payback period for each project.c) Calculate the net present value (NPV) of each project,d) Calculate the internal rate of return (IRR) for each project.e) Discuss any conflict in ranking that may…A company is considering a project that has the attached cash flows: what is its IRR? Year 0= -$1050 Year 1= $500 Year 2= $500 Year 3= $500 Year 4= $500Compute the NPV of the project below assuming that the cost of capital is 8%: Year 0 1 2 3 FCF -85,000 55,000 55,000 68,000