Question

What is the NPV of a project that costs $11,000 today and another $8,000 in one...

What is the NPV of a project that costs $11,000 today and another $8,000 in one year, and is then expected to generate 9 annual cash inflows of $3,000 starting at the end of year 4. Cost of capital is 12%. Round to the nearest cent. ​[Hint: There are two outflows here, today and year 1. You will need to discount the year 1 cost at the project's discount rate when calculating PV(outflows).]

Homework Answers

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
3. What is the NPV of a project that costs $15,000 today and another $5,000 in...
3. What is the NPV of a project that costs $15,000 today and another $5,000 in one year, and is then expected to generate 13 annual cash inflows of $2,000 starting at the end of year 5. Cost of capital is 8%. Round to the nearest cent. ​[Hint: There are two outflows here, today and year 1. You will need to discount the year 1 cost at the project's discount rate when calculating PV(outflows).]
1) What is the NPV of a project that costs $89,000 today and is expected to...
1) What is the NPV of a project that costs $89,000 today and is expected to generate annual cash inflows of $18,000 for the next 8 years. Cost of capital (discount rate) is 13%. Round to the nearest cent. 2) What is the Profitability Index of a project that costs $22,000 today and is expected to generate annual cash inflows of $5,000 for the following 7 years. Cost of capital is 9%. Round to two decimal places. 3) A project...
What is the NPV of a project that costs $83,000 today and is expected to generate...
What is the NPV of a project that costs $83,000 today and is expected to generate annual cash inflows of $19,000 for the next 7 years. Cost of capital (discount rate) is 14%. Round to the nearest cent.
What is the NPV of a project that costs $100,000 today and is expected to generate...
What is the NPV of a project that costs $100,000 today and is expected to generate annual cash inflows of $15,000 for the next 10 years. Cost of capital (discount rate) is 12%. Round to the nearest cent.
What is the NPV of a project that costs $10,000 today and another $10,000 in one...
What is the NPV of a project that costs $10,000 today and another $10,000 in one year, and is then expected to generate 8 annual cash inflows of $4,000 each starting at the end of year 6? The expected return on the market is 9.4%, the risk-free rate is 2% and the project’s beta is 1.4.
What is the NPV of a project that costs $35,000 today and is expected to generate...
What is the NPV of a project that costs $35,000 today and is expected to generate annual cash inflows of $10,000 for the next 7 years, followed by a final inflow of $15,000 in year 8. Cost of capital is 8.0%. Round to the nearest cent.
What is the NPV of a project that costs $36,000 today and is expected to generate...
What is the NPV of a project that costs $36,000 today and is expected to generate annual cash inflows of $9,000 for the next 7 years, followed by a final inflow of $15,000 in year 8. Cost of capital is 7.7%. Round to the nearest cent.
What is the NPV of a project that costs $37,000 today and is expected to generate...
What is the NPV of a project that costs $37,000 today and is expected to generate annual cash inflows of $9,000 for the next 7 years, followed by a final inflow of $15,000 in year 8. Cost of capital is 7.6%. Round to the nearest cent.
NPV A project has an initial cost of $63,800, expected net cash inflows of $12,000 per...
NPV A project has an initial cost of $63,800, expected net cash inflows of $12,000 per year for 10 years, and a cost of capital of 12%. What is the project's NPV? (Hint: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to the nearest cent. $  
1. A project has an initial cost of $63,275, expected net cash inflows of $15,000 per...
1. A project has an initial cost of $63,275, expected net cash inflows of $15,000 per year for 9 years, and a cost of capital of 8%. What is the project's NPV? (Hint: Begin by constructing a time line.) Do not round your intermediate calculations. Round your answer to the nearest cent. 2. A project has an initial cost of $63,275, expected net cash inflows of $15,000 per year for 9 years, and a cost of capital of 8%. What...