Question

A project that provides annual cash flows of $18,100 for eight years costs $87,000 today. What is the NPV for the project if the required return is 7 percent? What is the NPV for the project if the required return is 19 percent? At what discount rate would you be indifferent between accepting the project and rejecting it?

Answer #1

NPV is the net present value of all the cash flows.

Formulas Used:

NPV for the project if the required return is 7 percent = $21,080.50

NPV for the project if the required return is 19 percent = -$15,425.98

Discount rate at which you would be indifferent between accepting the project and rejecting it = 12.95%

A project that
provides annual cash flows of $17,300 for nine years costs $79,000
today.
THREE QUESTIONS:
What is the NPV for
the project if the required return is 8 percent
What is the NPV for
the project if the required return is 20 percent
At what discount rate
would you be indifferent between accepting the project and
rejecting it ?

A project that provides annual cash flows of $12,500 for 8
years costs $65,000 today. At what discount rate would you be
indifferent between accepting the project or rejecting it? If the
required rate of return is 9%, what is the profitability index of
this project?

A project that provides annual cash flows of $12,500 for 8 years
costs $65,000 today. At what discount rate would you be indifferent
between accepting the project or rejecting it? If the required rate
of return is 9%, what is the profitability index of this project?
Please show work and calculation don't do it on excel

Calculating NPV and IRR. A project that
provides annual cash flows of $1,710 for 10 years costs $7,560
today.
1. The NPV is $__________if the required rate of return is
10%.
2. The NPV is $__________if the required rate of return is
24%.
3. At what discount rate would you be indifferent between
accepting the project and rejecting it? I would be indifferent at
_____%
4. Using a finnancial calculator please show and explain
work.

A project that provides annual
cash flows of $2,700 for nine years costs $8,800 today.
Requirement
1:
At a required return of 9 percent, what is the NPV of the
project? (Do not round intermediate calculations. Round
your answer to 2 decimal places (e.g.,
32.16).)
NPV
$
Requirement
2:
At a required return of 28 percent, what is the NPV of the
project? Use the IRR function. (Do not round intermediate
calculations. A negative amount should be indicated by a...

A project that provides annual cash flows of $11,700 for nine
years costs $63,000 today.
What is the NPV for the project if the required return is 8
percent? (Do not round intermediate calculations and round
your answer to 2 decimal places, e.g., 32.16.)
At a required return of 8 percent, should the firm accept this
project?
Accept
Reject
What is the NPV for the project if the required return is 20
percent? (A negative answer should be indicated by...

A project that provides annual cash flows of $13,738 for eight
years costs $84,486 today. What is the NPV for the project if the
required return is 7 percent? (Negative amount should be indicated
by a minus sign. Round your answer to the nearest dollar. (e.g.,
32.16)

A project that provides annual cash flows of $20,500 for 7 years
costs $82,000 today. a. If the required return is 10 percent, what
is the NPV for this project?
Determine the IRR for this project.

LO 3 LO 4 7.
Calculating NPV and IRR. A project that provides annual cash
flows of $2,620 for eight years costs $9,430 today. Is this a good
project if the required return is 8 percent? What if it's 24
percent? At what discount rate would you be indifferent between
accepting the project and rejecting it?
LO 4 9.
Calculating NPV. For the cash flows in the previous problem,
what is the NPV at a discount rate of...

How do i solve this with a BA II Plus financial calculator?
A project that provides annual cash flows of $1,000 for eight
years costs $4,900 today. Is this a good project if the required
return is 8%? What if it’s 24%? At what discount rate would you be
indifferent between accepting the project and rejecting it?

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 2 minutes ago

asked 21 minutes ago

asked 22 minutes ago

asked 28 minutes ago

asked 41 minutes ago

asked 45 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago