You initially invested $80,000 in a project. If the present value of the cash flows of that project is $120,000, what is the NPV of the project?
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You initially invested $80,000 in a project. If the
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- Calculate the cash flows for each year. Based on these cash flows and the average project cost of capital, what are the projects NPV, IRR, MIRR, PI, payback, and discounted payback? Do these indicators suggest that the project should be undertaken?A project has an investment cost of $200,000 and a profitability index of 1.6. What is the net present value of the project? NPV=If you invested $180 million into a project today, and achieved operating cash flows of $50million, $30million, $40million, $80million, and $30million, how would you measure the following: a. NPV (assuming 7.8% cost of capital) b. IRR c. How would you mathematically and verbally describe NPV relative to the IRR?
- You are considering investing in a project that has an initial cost of $10,000, a WACC of 10%, with the estimated net cashflows for years 1, 2, 3 being equal to $4000, $ 9,000, $21,000. What is the project’s NPV?Suppose we have a project with the following cash flows;Outgoing: $150,000 at t=0 and $250,000 at t=1Income: $1,000,000 at t=2Find the IRR of the project.The McNally Co. is considering an investment in a project that generates a profitability index of 1.3. The present value of the cash inflows on the project is P44,000. What is the net present value of this project?
- Consider an investment project with the cash flows given in the table below. Compute the IRR for this investment. Is the project acceptable at MARR = 10%? The IRR for this project is %. (Round to one decimal place.) n 0 1 2 3 Cash Flow -$35,000 15,000 14,520 13,990a. What are the project’s annual net cash inflows? b. What is the present value of the project’s annual net cash inflows? (Round your final answer to the nearest whole dollar amount.) c. What is the project’s net present value? (Round final answer to the nearest whole dollar amount.) d. What is the profitability index for this project? (Round your answer to 2 decimal places.) e. What is the project’s internal rate of return? (Round your answer to nearest whole percent.)Your company has a project available with the following cash flows : If the required return is 14 percent should the project be accepted based on IRR?
- You've estimated the following cash flows (in $) for a project: A B 1 Year Cash flow 2 0 -3,000 3 1 900 4 2 1,300 5 3 1,606 The required return is 8.5%. 1. What is the IRR for the project? 2. What is the NPV of the project? 3. What should you do? Check all that apply: Accept the project based on its IRR Accept the project based on its NPV Reject the project based on its IRR Reject the project based on its NPVConsider a project with free cash flows in one year of $106,89 or $112,37, with each outcome being equally likely. The initial investment required for the project is $60,35, and the project's cost of capital is 0,20%. What is the NPV of this project?Consider an investment project with the following net cash flows: What would be the value of X if the project's IRR is 10%?
