Question

Monroe, Inc., is evaluating a project. The company uses a 13.8 percent discount rate for this project. Cost and cash flows are shown in the table. What is the NPV of the project?

Year Project

0 ($11,368,000)

1 $ 2,187,590

2 $ 3,787,552

3 $ 3,275,650

4 $ 4,115,899

5 $ 4,556,424

Answer #1

**NPV of the project is $**
**5,42,521**

**NPV
Calculation**

Net Present Value (NPV) = Present Value of cash flows – Initial Investment

**Present Value of cash
flows**

= ($ 2,187,590x0.8787) + ( $ 3,787,552x0.7722) + ($ 3,275,650x0.6785) + ($4,115,899x0.5962) + ($ 4,556,424x0.5239)

= $ 1,19,10,521

**Initial
Investment = $ 1,13,68,000**

Net Present Value (NPV) = Present Value of cash flows – Initial Investment

**
=** $
1,19,10,521 - $ 1,13,68,000

**
= $
5,42,521**

(Question 8)
Monroe, Inc., is evaluating a project. The company uses a 13.8
percent discount rate for this project. Cost and cash flows are
shown in the table. What is the NPV of the project
Year 0 1 2 3 4 5
project $11,368,00 $2,157,590 $3,787,552, $3,275,650 $4,115,899
$4,556,424
Round to two decimal places.
(Question 8)
Monroe, Inc., is evaluating a project. The company uses a 13.8
percent discount rate for this project. Cost and cash flows are
shown in...

Monroe, Inc., is evaluating a project. The company uses a 13.8
percent discount rate for this project. Cost and cash flows are
shown in the table. What is the NPV of the project? Year Project 0
($11,368,000) 1 $ 2,112,589 2 $ 3,787,552 3 $ 3,175,650 4 $
4,115,899 5 $ 4,556,424 Round to two decimal places

Monroe, Inc., is evaluating a project. The company uses a 13.8
percent discount rate for this project. Cost and cash flows are
shown in the table. What is the NPV of the project? Year
Project
0 ($11,368,000)
1 $ 2,187,590
2 $ 3,787,552
3 $ 3,250,650
4 $ 4,115,899
5 $ 4,556,424
Round to two decimal places

Monroe, Inc., is evaluating a project. The company uses a 13.8
percent discount rate for this project. Cost and cash flows are
shown in the table. What is the NPV of the project? Year Project 0
($11,368,000) 1 $ 2,112,590 2 $ 3,787,552 3 $ 3,275,650 4 $
4,115,899 5 $ 4,556,424 Round to two decimal places.

Management of Crane Measures, Inc., is evaluating two
independent projects. The company uses a 12.62 percent discount
rate for such projects. The costs and cash flows for the projects
are shown in the following table. Year Project 1 Project 2 0 -
$8,066,549 - $11,655,500 1 3,003,590 2,165,830 2 1,608,490
3,783,590 3 1,465,800 2,820,680 4 1,061,800 4,040,500 5 1,153,880
4,449,580 6 1,708,040 7 1,266,990 a. What are the IRRs for the
projects? (Round final answer to 2 decimal places, e.g....

M Company is evaluating a project with the following cash
flows. The company uses a discount rate of 8% and a reinvestment
rate of 5% on all of its projects.
Year
Cash Flow
-16,800
7,900
9,100
8,700
7,500
-4,900
Calculate the MIRR of the project using all three methods with
the above interest rates.
1.Discounting Approach
2. Reinvestment approach
3. Combination Approach

Butler International Limited is evaluating a project in Erewhon.
The project will create the following cash flows:
Year
Cash Flow
0
–$
1,230,000
1
405,000
2
470,000
3
365,000
4
320,000
All cash flows will occur in Erewhon and are expressed in
dollars. In an attempt to improve its economy, the Erewhonian
government has declared that all cash flows created by a foreign
company are “blocked” and must be reinvested with the government
for one year. The reinvestment rate...

Our company is evaluating a project with the projected future
annual cash flows shown as follows and an appropriate cost of
capital of 15.0%. Period 0: $9,000: Period 1: $4,500, Period 2:
$450, Period 3: $5,500, Period 4: $2,500, Period 5: $600. Compute
the NPV statistic for the project and whether the company should
accept or reject this project?

Net present value: Crescent Industries is
planning to replace some existing machinery in its plant. The cost
of the new equipment and the resulting cash flows are shown in the
accompanying table.
Year
Cash Flow
0
-$3,493,710
1
$816,490
2
$930,375
3
$1,216,906
4
$1,341,053
5
$1,392,665
If the company uses an 18 percent discount rate for project like
this, the NPV is $____, and the company should reject or accept the
project?

A company is evaluating a project with the following cash
flows:
Year
CASH FLOW
0
-49,000
1
13,700
2
25,200
3
30,500
4
19,800
5
-8,500
The company uses an interest rate of 10% on all projects,
Calculate the MIRR of the project using all three methods

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