Question
Compute the NPV statistic for Project U if the appropriate cost of capital is 10 percent....
Compute the NPV statistic for Project U if the appropriate cost of capital is 10 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.)
| Project U | ||||||
| Time: | 0 | 1 | 2 | 3 | 4 | 5 |
| Cash flow: | –$1,600 | $590 | $2,080 | –$640 | $540 | –$220 |
NPV=
Should the project be accepted or rejected?
Homework Answers
Answer #1
Solution:-
To Calculate NPV of the Project-
NPV = PV of cash Inflow - PV of cash Outflow
NPV = 
NPV = 
NPV = 590 * 0.909 + 2,080 * 0.826 - 640 * 0.751 + 540 * 0.683 - 220 * 621 - 1,600
NPV = 536.36 + 1,719.01 - 480.84 + 368.83 - 136.60 - 1,600
NPV = $406.76
Project is accepted when NPV of the Project is greater than or equal to zero. Hence, the Project is accepted.
If you have any query related to question then feel free to ask me in a comment.Thanks.
Not the answer you're looking for?
Similar Questions
Compute the NPV statistic for Project Y if the appropriate cost of capital is 11 percent....
Compute the NPV statistic for Project Y if the appropriate cost
of capital is 11 percent. (Negative amount should be indicated by a
minus sign. Do not round intermediate calculations and round your
final answer to 2 decimal place.)
Project Y Time: 0 1 2 3 4
Cash flow: –$9,300 $3,610 $4,440 $1,780 $560
NPV $ _________
Should the project be accepted or rejected? _____________
Compute the NPV statistic for Project U if the appropriate cost of capital is 11 percent....
Compute the NPV statistic for Project U if the appropriate cost
of capital is 11 percent. (Negative amount should be indicated by a
minus sign. Do not round intermediate calculations and round your
final answer to 2 decimal places.)
Project U
Time:
0
1
2
3
4
5
Cash flow:
–$2,500
$750
$2,480
–$720
$700
–$300
Compute the NPV statistic for Project U if the appropriate cost of capital is 9 percent....
Compute the NPV statistic for Project U if the appropriate cost
of capital is 9 percent. (Negative amount should be
indicated by a minus sign. Do not round intermediate calculations
and round your final answer to 2 decimal places.)
Project U
Time:
0
1
2
3
4
5
Cash flow:
–$2,300
$670
$2,280
–$680
$620
–$260
Compute the NPV for Project M if the appropriate cost of capital is 8 percent. (Negative...
Compute the NPV for Project M if the appropriate cost of capital
is 8 percent. (Negative amount should be indicated by a minus sign.
Do not round intermediate calculations and round your final answer
to 2 decimal places.)
Project M
Time: 0 1 2 3 4 5
Cash flow –$2,200 $590 $720 $760 $840 $340
NPV $
Should the project be accepted or rejected?
Compute the NPV for Project M if the appropriate cost of capital is 9 percent. (Negative...
Compute the NPV for Project M if the appropriate cost of capital
is 9 percent. (Negative amount should be indicated by a
minus sign. Do not round intermediate calculations and round your
final answer to 2 decimal places.)
Project M
Time:
0
1
2
3
4
5
Cash flow:
–$1,200
$390
$520
$560
$640
$140
Problem 13-3 NPV with Non-normal Cash Flows (LG13-3)
Compute the NPV statistic for Project U if the appropriate cost
of capital is 10 percent. (Negative...
Compute the NPV for Project M if the appropriate cost of capital is 8 percent. (Negative...
Compute the NPV for Project M if the appropriate cost of capital
is 8 percent. (Negative amount should be indicated by a minus sign.
Do not round intermediate calculations and round your final answer
to 2 decimal places.) Project M Time: 0 1 2 3 4 5 Cash flow:
–$3,100 $710 $840 $880 $960 $460
Should the project be rejected or accepted?
Compute the PI statistic for Project Q if the appropriate cost of capital is 13 percent....
Compute the PI
statistic for Project Q if the appropriate cost of capital is 13
percent. (Do not round intermediate calculations and round
your final answer to 2 decimal places.)
Project Q
Time:
0
1
2
3
4
Cash flow:
−$11,800
$3,750
$4,580
$1,920
$2,550
Should the project be accepted or rejected?
rejected
accepted
Compute the PI statistic for Project Q if the appropriate cost of capital is 11 percent....
Compute the PI statistic for Project Q if the appropriate cost
of capital is 11 percent. (Do not round intermediate
calculations and round your final answer to 2 decimal
places.)
Project Q
Time:
0
1
2
3
4
Cash flow
–$12,300
$4,000
$4,830
$2,170
$2,800
PI
Should the project be accepted
or rejected?
Accepted
Rejected
Compute the MIRR statistic for Project J if the appropriate cost of capital is 8 percent....
Compute the MIRR
statistic for Project J if the appropriate cost of capital is 8
percent. (Do not round intermediate calculations and round
your final answer to 2 decimal places.)
Project J
Time:
0
1
2
3
4
5
Cash flow:
−$2,700
$860
$2,330
−$690
$810
−$270
Should the project be accepted or rejected?
accepted
rejected
Compute the MIRR statistic for Project J if the appropriate cost of capital is 9 percent....
Compute the MIRR statistic for Project J if the appropriate cost
of capital is 9 percent. (Do not round intermediate calculations
and round your final answer to 2 decimal places.) Project J Time: 0
1 2 3 4 5 Cash flow –$2,000 $650 $1,980 –$620 $600 –$200 MIRR %
Should the project be accepted or rejected? Accepted Rejected
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 6 minutes ago
asked 12 minutes ago
asked 18 minutes ago
asked 20 minutes ago
asked 44 minutes ago
asked 52 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