Question

Compute the Payback period, NPV, IRR, and PI and give accept/reject decision for the following project....

  1. 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
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Calc:

The project should be accepted as NPV is positive

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
(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...
Compute the Discounted Payback statistic for Project X and recommend whether the firm should accept or...
Compute the Discounted Payback statistic for Project X and recommend whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 10 percent and the maximum allowable discounted payback is 3 years. Time: 0 1 2 3 4 5 Cash flow: -1,000 500 480 400 300 150 2.98 years,accept 4.98 years, reject 3.49 years, reject 2.49 years, accept
Compute the NPV for Project X and accept or reject the project with the cash flows...
Compute the NPV for Project X and accept or reject the project with the cash flows shown below if the appropriate cost of capital is 10 percent. Time 0 1 2 3 4 5 Cash Flow -1000 -75 100 100 0 2000 Group of answer choices $331.44 $-639.96 $392.44 $486.29
A project has the following cash flows. What is the payback period, NPV, PI, IRR, MIRR,...
A project has the following cash flows. What is the payback period, NPV, PI, IRR, MIRR, and EAA? Assume an interest rate of 5%. Year CF ($) 0) -5,000 1). 2,700 2). 3,300 3) 1,400 4). 330 5) 340 Also upload your excel files showing your work.
Compute the Payback statistic for Project X and recommend whether the firm should accept or reject...
Compute the Payback statistic for Project X and recommend whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 12 percent and the maximum allowable payback is 4 years. Time: 0 1 2 3 4 5 Cash flow: -3,100 950 700 850 725 625 Multiple Choice 3.83 years, Reject 2.83 years, Accept 2.83 years, Reject 3.83 years, Accept
Compute the Discounted Payback statistic for Project X and recommend whether the firm should accept or...
Compute the Discounted Payback statistic for Project X and recommend whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 10 percent and the maximum allowable discounted payback is 3 years.   Time: 0 1 2 3 4 5   Cash flow: -1,000 400 580 500 400 250 3.42 years, reject 4.72 years, reject 2.42 years, accept 2.72 years, accept
Compute the PI statistic for Project X and note whether the firm should accept or reject...
Compute the PI statistic for Project X and note whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 10 percent. Time 0 1 2 3 4 5 Cash Flow -250 75 0 100 75 50
Compute the PI statistic for Project X and note whether the firm should accept or reject...
Compute the PI statistic for Project X and note whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 11 percent. Time: 0 1 2 3 4 5 Cash flow: -78 -78 0 113 88 63 51.00%, accept 29.71%, accept 38.09%, accept 11.00%, reject
Compute the Payback statistic for Project X and recommend whether the firm should accept or reject...
Compute the Payback statistic for Project X and recommend whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 12 percent and the maximum allowable payback is 4 years.   Time: 0 1 2 3 4 5   Cash flow: -2,100 350 700 800 750 525
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT