Question

Mega Dynamics is considering a project that has the following cash flows: Year Project Cash Flow...

Mega Dynamics is considering a project that has the following cash flows:

Year

Project Cash Flow

0

?

1

$2,000

2

3,000

3

3,000

4

1,500


The project has an IRR of 17% . The firm's cost of capital is 11 percent. What is the project's net present value (NPV)?

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
Shannon industries is considering a project that has the following cash flows: Year Project cash flow...
Shannon industries is considering a project that has the following cash flows: Year Project cash flow 0 $-6,240 1 $1,980 2 $3,750 3 ? 4 $1,000 The project has a payback of 2.85 years. The firm's cost of capital is 10 percent. what is the project's net present value (NPV)? a) 874.87 b) -146.92 c) 436.96 d) 727.95 e) -207.02
Shannon Industries is considering a project which has the following cash flows: Year Cash Flow 0...
Shannon Industries is considering a project which has the following cash flows: Year Cash Flow 0 ? 1 $2,000 2    $3,000 3 $3,000 4 $1,500    The project has a payback period of 2 years. The firm’s cost of capital is 12 percent. What is    the project’s net present value? (round your answer to the nearest $1.) a. $ 570 b. $ 730 c. $2,266 d. $2,761 e. $3,766
Braun Industries is considering an investment project which has the following cash flows: Year Cash Flow...
Braun Industries is considering an investment project which has the following cash flows: Year Cash Flow 0 -$1,000 1 400 2 300 3 500 4 400 The company's WACC is 10 percent. What is the project's payback, internal rate of return, and net present value? Select one: a. Payback = 2.6, IRR = 21.22%, NPV = $300. b. Payback = 2.6, IRR = 21.22%, NPV = $260. c. Payback = 2.4, IRR = 10.00%, NPV = $600. d. Payback =...
Telesis Corp is considering a project that has the following cash flows: Year Cash Flow 0...
Telesis Corp is considering a project that has the following cash flows: Year Cash Flow 0 -$1,000 1 400 2 300 3 500 4 400 The company’s weighted average cost of capital (WACC) is 10%. What are the project’s payback period (Payback), internal rate of return (IRR), net present value (NPV), and profitability index (PI)? A. Payback = 3.5, IRR = 10.22%, NPV = $1260, PI=1.26 B. Payback = 2.6, IRR = 21.22%, NPV = $349, PI=1.35 C. Payback =...
Sorenson Motors (SM) is considering a project that has the following cash flows: Year Cash Flow...
Sorenson Motors (SM) is considering a project that has the following cash flows: Year Cash Flow 0 Initial Outlay 1 $2,000 2 3,000 3 3,000 4 1,500 The project has a payback period of 2.5 years. The weighted average cost of capital is 12%. Which of the following statements is NOT correct? a. Acceptance of this project would increase SM’s value by $7,265.91. b. The project is expected to generate $1.12 for each $1.00 of investment. c. If SM were...
Boca Center Inc. is considering a project that has the following cash flow and WACC data....
Boca Center Inc. is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's expected NPV can be negative, in which case it will be rejected. WACC: 14.00% Year 0 1 2 3 4 Cash flows -$1,200 $400 $425 $450 $475 Group of answer choices 62.88 41.25 45.84 50.93 56.59 103.95 110.02 36.65 Flag this Question Question 123.13 pts Maxwell Feed & Seed is considering a project that has...
A stand-alone capital project has the following projected cash flows: Year 0 1 2 3 Cash...
A stand-alone capital project has the following projected cash flows: Year 0 1 2 3 Cash flow ($4,000) $1,500 $1,200 $2,395 If the firm's cost of capital is 14%, which of the following statements is true? a.the IRR is greater than the cost of capital and the project should be undertaken b.the project should be rejected because the IRR is 12%, which is less than the project's cost of capital c.the IRR is less than 12% and the project should...
Aerospace Dynamics will invest $135,000 in a project that will produce the following cash flows. The...
Aerospace Dynamics will invest $135,000 in a project that will produce the following cash flows. The cost of capital is 11 percent. (Note that the fourth year’s cash flow is negative.) Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. Year Cash Flow 1 $ 46,000 2 54,000 3 68,000 4 (53,000 ) 5 120,000 a. What is the net present value of the project?
Corp. is considering a project that has the following cash flow and weighted average cost of...
Corp. is considering a project that has the following cash flow and weighted average cost of capital (WACC) data. What is the project's NPV (net present value)? Assume WACC (i.e. required rate of return) of 12.5%. Year Cash Flows: 0=$-1,050 1 $450 2  $460 3 $470 Group of answer choices $43.55 $56.99 $101.53 $112.97
Sam Corp. is considering a project that has the following cash flow data.  What is the project's...
Sam Corp. is considering a project that has the following cash flow data.  What is the project's IRR (Internal Rate of Return)? Note that a project's projected IRR can be less than the weighted average cost of capital (WACC) or negative, in both cases it will be rejected. Show work. Year                           0                1                2               3           4   Cash flows            -$1,900        $600          $825           $950   -$50 Helmand Inc. is considering a project that has the following cash flow and WACC data.  What is the project's MIRR?  Note that a project's projected MIRR can be less than...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT