Q: ,what is the NPV of this investment?
A: Net Present Value: It is a measure of profitability and shows the absolute profit or loss made from…
Q: 17
A: The computation of the IRR as follows:
Q: Glossimer Thread Company is evaluating an investment that will cost $720,000 and will yield cash…
A: Internal rate of return is the discount rate at which the present value of cash inflows are equal to…
Q: Use the following data to answer questions (a) to (d). A company is considering the purchase of a…
A: To open the "NPV function" window - MS-Excel --> Formulas --> Financials --> NPV.
Q: You are considering an investment that will cost $15,000 and generate returns of $4,000 at the end…
A: Whenever an individual or a corporation has to evaluate the investment based upon the feasibility of…
Q: Your company is considering a capital project that will require a net initial investment of…
A: Solution:- Internal Rate of Return (IRR) means the rate of return the project is yielding. At IRR,…
Q: A $15,000 investment is to be made with anticipated annual returns as shown in the spreadsheet in…
A: The Present value of an investment is the present worth of a future cash flows to be received at a…
Q: Zoomit Corporation has a capital investment opportunity that will cost $220,000. The cash inflows…
A: Zoomit corporation Year Cash flow 0 -220000 1 40000 2 40000 3 40000 4 40000 5 40000…
Q: Imagine you are investing $100,000 into a project A. MARR is 15% This investment will bring you the…
A: Investment in Project $100000 Annual Positive Cashflwos = $ 31000 from year 1 to year MARR = 15%
Q: Yıl Nakit akışı 0 -1000 TL 1 +300 TL 3 +300 TL 4 +300 TL 5 +300 TL
A: Internal Rate of Return is the rate at which NPV of the Investment is zero. It is compared with MARR…
Q: If the investment rate is 12%, the borrowing rate is 15%, and the MARR is 14%, what is the rate of…
A: Rate of return of the project is calculated using IRR. IRR is the rate at which Present Value of…
Q: an investment of P2,500,000, and the desired ROI is 20%.
A: To find the target cost per battery, first, determine the desired profit, then the total target…
Q: a. Calculate the following Periodic Total Returns on a 5-year investment. To your calculations,…
A: a. Calculate the total return on invest as follows: Selling Cost = 5% Total Return = NCF + Increase…
Q: Suppose you are given the cash flows for a project with the following cash flows. The cost of…
A: The discounted payback period is the overall expected time required to recover the initial cost in…
Q: How long will it take for an Investment of P3,500,000 to earn P1,525,250 if invested at the rate of…
A: The future value is the amount that will be received at the end of a certain period. In simple…
Q: 7-21 For the following diagram, compute the rate of return on the $30,000 investment. 5000 5000 5000…
A: Rate of return. The rate at which return will be received by an investor on its investment value.
Q: Find internal rate of return of a project with an initial cost of $43,000, expected net cash inflows…
A: Excel Spreadsheet:
Q: You are looking at an investment that will pay you $22,995 in year 2, $43,270 in year 4 and $41,525…
A: The present worth of the investment will include the discounted value of all single payment which…
Q: A risky $500,000 investment is expected to generate the following cash flows: Year…
A: Given information: Initial investment is $500,000 Cost of capital is 10% Probability is 80%, 75% and…
Q: Find internal rate of return of a project with an initial cost of $43,000, expected net cash inflows…
A: Working of the IRR of the Project is shown below: Hence, the IRR is 14.90%.
Q: Q3) 3. The company will invest $150,000 in a project and average annual income $50,000. The…
A: Accounting rate of return = Average annual income / Initial investment.
Q: If An investment costs $23,958 and will generate cash flow of $6,000 annually for five years. The…
A: All the financials in this solution are in $. FIgures in parenthesis mean negative values.Part…
Q: Suppose we have a project with the following cash flows: Outgoing: P150,000 at t = 0, P250,000 at t…
A: IRR may be calculated using the following excel formula
Q: 2. For the net cash flow series shown, find the external rate of return using the ROIC method at an…
A: For calculation external rate of return, first we need to discount the outflows at rate of…
Q: An investment costs $465 and is expected to produce cash flows of $100 at theend of Year 1, $200 at…
A: A guideline that helps an investor to decide whether investment should be made or not is term as…
Q: Consider the following projects, X and Y where the firm can only choose one. Project X costs $1500…
A: Capital budgeting indicates the evaluation of the profitability of possible investment and projects…
Q: Suppose a project has the following cash flows. What is the NPV if the cost of the project is…
A: NPV stands for the net present value wherein the present value of cash inflows is equal to the…
Q: Consider the following cash flow cash flow year 0 -1000 TL 2 +300 TL 3 +300 TL 4 +300 TL 5 +300 TL…
A: Internal Rate of Return is the rate at which NPV of the Investment is zero. It is compared with MARR…
Q: 5. LL Consider the following cash flows of a project: Year Year 1. 50 0. 2. 3. 4. 1. Find the…
A: Internal Rate of Return: The internal rate of return (IRR) is a financial statistic used to evaluate…
Q: A company is considering the purchase of a copier that costs RM 50,000. Assume the required rate of…
A: To open the "NPV function" window - MS-Excel --> Formulas --> Financials --> NPV. To open…
Q: For your ongoing business, the required investments are $420,000 for X1, $550,000 for X2, $720,000…
A: Incremental IRR analysis is used for selection of mutually exclusive alternatives which have…
Q: Find internal rate of return of a project with an initial cost of $43,000, expected net cash inflows…
A: Capital budgeting approaches are the techniques that the management of the company adopts to…
Q: What is the payback period of a £40000 investment with the following cash flows? Year CF 1 £20000 2…
A: The payback period refers to the amount of time it takes to recover the cost of an investment. In…
Q: Find the value X such that the project's rate of return would be equal to 15% End of Year Cash Flow…
A: Cash flow: It refers to cash coming in and coming out in the business. When cash inflow is over and…
Q: A project has a NPV of 15,000 when the cutoff rate is 10%. The annual cash flows are 20,505 on an…
A: Profitability index is used to see the attractiveness of investment or a project. It is also written…
Q: What will be the profitability index if the initial cash outflow was $2,000,000 and the cash inflow…
A: Information Provided: Term = 10 years Cash infow = $600,000 Cash outflow = $2,000,000 Cost of…
Q: The Seattle Corporation has been presented with an investment opportunity which will yield…
A: Net present value means the difference between the present value of cash inflow and present value of…
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- Calculate the EAR of the following investment, entered as a percentage (Example: if your answer is 0.145, enter 14.5) Year Number Cashflow 0 -11400 1 3500 2 3000 3 3100 4 2800 Your Answer:Calculate the APR of the following investment, entered as a percentage (Example: if your answer is 14.5%, enter 14.5 and not 0.145) Year Number Cashflow 0 -11000 1 3000 2 3500 3 2900 4 2800Spreadsheet Link What is the IRR of the following project?Cash FlowYear0 -32,0001. 9,0002. 10,0003. 15,0004. 7,800 1). 10.8% 2). 11.2% 3). 11.7%4). 12.0% 5). 12.3%
- 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%Company Rapid Growth is considering the following project: Year 0 1 2 3 4 5 Cash Flows -$87800 $10800 $26000 $33300 $35000 $53400 What's the profitability index of the project, assuming 8.66% discount rate?You are considering a project that has the following cash flow data. What is the project's payback? (Ch. 11) Year 0 1 2 3 Cash Flow -900 350 450 600 Group of answer choices 1.95 1.52 2.60 2.17 2.38
- Calculate the HPR of the following investment, entered as a percentage (Example: if your answer is 14.5%, enter 14.5 and not 0.145) Period Cashflow 0 -14100 1 3300 2 3300 3 3100 4 2800Consider the Following 10-year project: Year Cash Flow 0 -30000 1 2500 2 5000 3 6750 4 7000 5 7250 6 6000 7 6250 8 8000 9 3750 10 2000 What is the NPV of the project if the required rate of return is 12%? Would you accept it?Consider a project with the following cash flows in dollars ($): Year Cash Flow0 -15,0001 50002 50003 50004 5000 Assume the appropriate discount rate for this project is 12%. What is the payback period for this project? (Round your answer to the tenths.)
- Company Rapid Growth is considering the following project: Year 0 1 2 3 4 5 Cash Flows -$80100 $10500 $25800 $34000 $36200 $53400 What's the net present value (NPV) of the project, assuming 9.00% discount rate?Projection of yearl cashflow Year Cashflow($) 0 (239000.00) 1 3789.00 2 47675.00 3 122097.00 4 407968.00 5 453324.00 Given that the discount rate is 10% What is the projects discounted payback period? Calculate for Net Present Value? Calculate Internal Rate of Return?You invest $200 000 in a project. Your returns are as follows: Year Annual Net Cash Inflow Cumulative Net Cash Inflow 1 $70 000 $70 000 2 $70 000 $140 000 3 $80 000 $220 000 4 $50 000 $270 000 5 $30 000 $300 000 Calculate your payback period? a. 4 years b. 3.5 years c. 2.25 years d. 2.75