Question

Please show your steps! Question 1 a) What is the NPV, IRR, and payback period of...

Please show your steps! Question 1

a) What is the NPV, IRR, and payback period of a project with the following cash flows if WACC is 20%?

Time: 0

1

2

3

4

5

-$350,000

$100,000

$100,000

$100,000

$50,000

$50,000

NPV=
IRR=
Payback period=

b) Should you accept or reject the project according to NPV and IRR?

*can you please include greater than an less than signs.* Thank you.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
QUESTION 1 Year Cash flow 0 -1075 1 350 2 450 3 375 4 300 A...
QUESTION 1 Year Cash flow 0 -1075 1 350 2 450 3 375 4 300 A firm is evaluating a potential capital expenditure project. The project will last for 4 years and has the above expected cash flows. The firm has a WACC of 15%. What is the project's NPV? If NPV is negative, enter the number with a minus sign. Use 2 decimal places Year Cash flow 0 -1075 1 350 2 450 3 375 4 300 The firm...
Compute the Payback period, NPV, IRR, and PI and give accept/reject decision for the following project....
Compute the Payback period, NPV, IRR, and PI and give accept/reject decision for the following project. The cost of capital is 10 percent. Assume the policy payback period is 3 years. Year Cash Inflow (Outflow) 0 (400) 1 100 2 200 3 200 4 300
(Payback ​period, NPV,​ PI, and IRR calculations​) You are considering a project with an initial cash...
(Payback ​period, NPV,​ PI, and IRR calculations​) You are considering a project with an initial cash outlay of ​$75,000 and expected free cash flows of ​$26,000 at the end of each year for 5 years. The required rate of return for this project is 7 percent. a. What is the​ project's payback​ period? b. What is the​ project's NPV​? c. What is the​ project's PI​? d. What is the​ project's IRR​?
​(Payback ​period, NPV,​ PI, and IRR calculations​) You are considering a project with an initial cash...
​(Payback ​period, NPV,​ PI, and IRR calculations​) You are considering a project with an initial cash outlay of ​$80,000 and expected free cash flows of ​$26,000 at the end of each year for 6 years. The required rate of return for this project is 7 percent. a. What is the​ project's payback​ period? b. What is the​ project's NPV​? c. What is the​ project's PI​? d. What is the​ project's IRR​? a. The​ project's payback period is nothing years.  ​(Round...
11. The NPV and payback period What information does the payback period provide? A project’s payback...
11. The NPV and payback period What information does the payback period provide? A project’s payback period (PB) indicates the number of years required for a project to recover its initial investment using its operating cash flows. As the theoretical soundness of the conventional (undiscounted) PB technique was criticized, the model was modified to incorporate the time value of money-adjusted operating cash flows to create the discounted payback method. While both payback models continue to reflect faulty ranking criteria, they...
1) If the NPV of a project with one sign reversal is positive, then its IRR:...
1) If the NPV of a project with one sign reversal is positive, then its IRR: Select one: a. must be greater than the required rate of return b. must be less than the required rate of return c. could be greater or less than the required rate of return d. cannot be determined without actual cash flows 2) Which of the following statements is INCORRECT? Select one: a. An acceptable project should have an NPV greater than or equal...
Please show all calculations. If using Excel, please show formulas. Practice Question: Calculate the NPV &...
Please show all calculations. If using Excel, please show formulas. Practice Question: Calculate the NPV & IRR for the following 5 year project: - discount rate of 10% - ncf yr 0 = -250,000 - ncf yr 1 = 200,000 - ncf yr 2 = 350,000 - ncf yr 3 = 300,000 - ncf yr 4 = 300,000 - ncf yr 5 = -50,000
A project has the following cash flows. What is the payback period, NPV, PI, IRR, MIRR,...
A project has the following cash flows. What is the payback period, NPV, PI, IRR, MIRR, and EAA? Assume an interest rate of 5%. Year CF ($) 0) -5,000 1). 2,700 2). 3,300 3) 1,400 4). 330 5) 340 Also upload your excel files showing your work.
RejuveNation needs to estimate how long the payback period would be for their new facility project....
RejuveNation needs to estimate how long the payback period would be for their new facility project. They have received two proposals and need to decide which one is best. Project Weights will have an initial investment of $200,000 and generate positive cash flows of $100,000 at the end of year 1, $75,000 at the end of year 2, $50,000 at the end of 3, and $100,000 at the end of year 4. Project Waters will have an initial investment of...
1. Learning Objectives (a)  Develop proforma Project Income Statement Using Excel Spreadsheet (b)  Compute  Net Project Cash flows, NPV,  IRR...
1. Learning Objectives (a)  Develop proforma Project Income Statement Using Excel Spreadsheet (b)  Compute  Net Project Cash flows, NPV,  IRR and PayBack Period 1) Life Period of the Equipment = 4 years 8) Sales for first year (1) $     200,000 2) New equipment cost $          (200,000) 9) Sales increase per year 4% 3) Equipment ship & install cost $            (25,000) 10) Operating cost: $    (120,000) 4) Related start up cost $              (5,000)     (60 Percent of Sales) -60% 5) Inventory increase $             25,000 11) Depreciation (Straight Line)/YR $      (60,000) 6) Accounts Payable...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT