Question

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)?

Answer #1

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 ?
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 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
-$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 =...

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
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Question 123.13 pts
Maxwell Feed & Seed is considering a project that has...

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...

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 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 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...

Anderson Associates is considering two mutually exclusive
projects that have the following cash flows:
Project
A
Project B
Year
Cash
Flow
Cash Flow
0
-$11,000
-$9,000
1
1,500
6,000
2
3,000
4,000
3
5,000
3,000
4
9,000
2,000
At what cost of capital do the two projects have the same net
present value? (That is, what is the crossover rate?) Enter your
answer rounded to two decimal places. Do not...

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