Question

A given project requires a $29,602 investment and is expected to generate end of period annual cash flows as follows:

Year 1 | Year 2 | Year 3 |

$14,944 | $8,000 | $10,000 |

Assuming a discount (interest) rate of 10%, what is the net present value of this investment? Use the table in your book and do not round the numbers from the table. You can round your answer to the nearest dollar, but do not include a dollar sign in your answer. If your answer is negative, include a negative sign before the number (for example, -3000).

Answer #1

A given project requires a $21,411 investment and is expected to
generate end of period annual cash flows as follows: Year 1 Year 2
Year 3 $16,633 $8,000 $10,000 Assuming a discount (interest) rate
of 10%, what is the net present value of this investment? Use the
table in your book and do not round the numbers from the table. You
can round your answer to the nearest dollar, but do not include a
dollar sign in your answer. If...

A given project requires a $24,217 investment and is expected to
generate end of period annual cash flows as follows:
Year 1
Year 2
Year 3
$11,439
$8,000
$10,000
Assuming a discount (interest) rate of 10%, what is the net
present value of this investment? Use the table in your book and do
not round the numbers from the table. You can round your answer to
the nearest dollar, but do not include a dollar sign in your
answer. If...

Project A would require an initial outlay of $60,000 and is
expected to generate positive cash flows in years one through six
of $18,838; $12,133; $17,123; $13,007; $17,559; and $17,907. Using
a discount rate of 13.2%, what is the NPV of this project? If the
answer is negative, include the negative sign, and show the answer
to the nearest dollar.

Project A would require an initial outlay of $56,000 and is
expected to generate positive cash flows in years one through six
of $16,542; $14,677; $15,035; $19,167; $19,796; and $12,120. Using
a discount rate of 17.1%, what is the NPV of this project? If the
answer is negative, include the negative sign, and show the answer
to the nearest dollar.

An investment that costs $32,000 will produce annual cash flows
of $10,680 for a period of 4 years. Given a desired rate of return
of 8%, what will the investment generate? Use Appendix Table 2.
(Do not round your intermediate calculations. Round your
answer to the nearest whole dollar.)
A positive net present value of $35,374.
A positive net present value of $3,374.
A negative net present value of $3,374.
A negative net present value of $35,374.

Quad Enterprises is considering a new three-year expansion
project that requires an initial fixed asset investment of $2.57
million. The fixed asset will be depreciated straight-line to zero
over its three-year tax life and is estimated to have a market
value of $278995 at the end of the project. The project is
estimated to generate $2280865 in annual sales, with costs of
$895746. The project requires an initial investment in net working
capital of $369370. If the tax rate is...

Quad Enterprises is considering a new three-year expansion
project that requires an initial fixed asset investment of $3.09
million. The fixed asset will be depreciated straight-line to zero
over its three-year tax life, after which time it will be
worthless. The project is estimated to generate $2,132,664 in
annual sales, with costs of $805,848. If the tax rate is 34 percent
and the required return on the project is 11 percent, what is the
project's NPV? (Negative amount should be...

Quad Enterprises is considering a new three-year expansion
project that requires an initial fixed asset investment of $3.11
million. The fixed asset will be depreciated straight-line to zero
over its three-year tax life, after which time it will be
worthless. The project is estimated to generate $2064280 in annual
sales, with costs of $828848. If the tax rate is 34 percent and the
required return on the project is 10 percent, what is the project's
NPV? (Negative amount should be...

A project your firm is considering requires an
investment today of $54,000 and is forecasted to generate cash
flows at years 1 through 14 (payments at t = 1 through t = 14) of
$15,800 and a cash flow at year 15 (at t = 15) of -$60,200. Please
take note that the cash flow at t = 15 is negative. If the
appropriate discount rate for capital budgeting purposes
is 10.5% per year, what is the NPV? Enter your...

8. A project requires a $219,000 investment in equipment. The
equipment is expected to worth $128,000 when the project ends in 7
years. Operating savings are expected to be $12,000 in the first
year and are expected to increase 5% per year for the life of the
project. The CCA rate is 30%, the firm's discount rate is 13%, and
the company’s tax rate is 22%. What is the after-tax present value
of the annual operating savings? (Do not round...

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