Question

ind the equivalent annual annuity of the following series: a project is expected to generate $10192...

ind the equivalent annual annuity of the following series: a project is expected to generate $10192 this year (end of year) and is expected to grow every year for 10years by $7550. (note: no units, 4 decimal points, 1% threshold) i=10%

Homework Answers

Answer #1

The equivalent annual annuity = $38308.5384

The excel calculation and formula used are shown below:


Please don't forget to rate the answer if its helpful, thank you.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
What is the equivalent annual annuity for a 4-yr project with the following cash flows and...
What is the equivalent annual annuity for a 4-yr project with the following cash flows and a discount rate of 9%? Year Cash Flow 0 (175,000) 1 45,000 2 55,000 3 65,000 4 85,000 What is the payback period for a project with the following cash flows: Year Cash Flow 0 (175,000) 1 45,000 2 55,000 3 65,000 4 85,000 What is the net present value for a project with the following cash flows and a discount rate of 9%?...
1. A project has an initial outlay of $1,732. The project will generate annual cash flows...
1. A project has an initial outlay of $1,732. The project will generate annual cash flows of $783 over the 4-year life of the project and terminal cash flows of $258 in the last year of the project. If the required rate of return on the project is 4%, what is the net present value (NPV) of the project? Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. 2.A...
A project costs $5,000 at t = 0 and will generate annual cash flows of $750...
A project costs $5,000 at t = 0 and will generate annual cash flows of $750 for 10 years, starting at t = 1. The discount rate is 6%. What is the NPV? What is the IRR? (Write down the equation for the IRR and get the solution using Excel or the calculator.) A project costs $5,000 and will generate annual cash flows of $200 in the first year, $300 in the second year and $400 in the third year....
A firm needs to estimate the Equivalent Annual Annuity (EAA) of two projects can be repeated...
A firm needs to estimate the Equivalent Annual Annuity (EAA) of two projects can be repeated indefinitiley. Project X requires an intial investment of 46,000 today and is expected to generate annual cash flows of 12,000 for the next 24 years. Project Y requirs an initial investment of 170,000 and is expected to generate monthly cash flows of 2,800 for the next 10 years. The cost of capital is 12%. The ____ has the highest EAA, which is ____ A.)...
A firm needs to estimate the equivalent annual annuity (EAA) of two projects, since these projects...
A firm needs to estimate the equivalent annual annuity (EAA) of two projects, since these projects can be repeated indefinitely. Project X requires an intial investment of 31,000 today and is expected to generate annual cash flows of 11,000 for the next 21 years. Project Y requires an intial investment of 120,000 and is expected to generate monthly cash flows of 1,800 for the next 15 years. The cost of capital is 10%. The ____ has the highest EAA, which...
A company is considering a project that is expected to generate its first cash flow in...
A company is considering a project that is expected to generate its first cash flow in the amount of $1 million in 6 years. The cash flows thereafter are expected to grow 15% a year until the last cash flow in year 24. Appropriate discount rate of the project is 13%. What is the maximum investment the company should dedicate for this project today? A reevaluation of the project shows that starting from year 25 the project is going to...
A project has an initial outlay of $2,378. The project will generate annual cash flows of...
A project has an initial outlay of $2,378. The project will generate annual cash flows of $485 over the 5-year life of the project and terminal cash flows of $277 in the last year of the project. If the required rate of return on the project is 20%, what is the net present value (NPV) of the project? Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.
Your firm is considering two projects. Your boss asked you to use the Equivalent Annual Annuity...
Your firm is considering two projects. Your boss asked you to use the Equivalent Annual Annuity method. Project A has an expected life of seven years, will cost $50,000,000, and will produce net cash flows of $12,000,000 each year. Project B has a life of fourteen years, will cost $60,000,000, and will produce net cash flows of $10,000,000 each year. The firm’s cost of capital is 12%. What is the equivalent annual annuity for each project? Which project should the...
A 9-year project is expected to generate annual sales of 8700 units at a price of...
A 9-year project is expected to generate annual sales of 8700 units at a price of $74 per unit and a variable cost of $45 per unit. The equipment necessary for the project will cost $301,000 and will be depreciated on a straight-line basis over the life of the project. Fixed costs are $180,000 per year and the tax rate is 35 percent. How sensitive is the operating cash flow to a $1 change in the per unit sales price?...
Growth Enterprises believes its latest project, which will cost $84,000 to install, will generate a perpetual...
Growth Enterprises believes its latest project, which will cost $84,000 to install, will generate a perpetual growing stream of cash flows. Cash flow at the end of the first year will be $9,000, and cash flows in future years are expected to grow indefinitely at an annual rate of 4%. a. If the discount rate for this project is 10%, what is the project NPV? (Do not round intermediate calculations.)   NPV $    b. What is the project IRR? (Do not...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT