Question

This question is based on the following cash flows

C=$10,000_{0} |
I_{1}=$2,000 |
I_{2}=$2,000 |
I_{3}=$3,000 |
I_{4}=$3,000 |
I_{5}=$2,500 |
L=$1,000 | |

0 | 1 | 2 | 3 | 4 | 5 |

C: Cost, I: Income, L: Salvage

The escalation rate is 10% per year in this example.

Calculate the NPV of this investment assuming an escalated dollar minimum rate of return of 8%

Answer #1

This question is based on the following cash flows
C0=$10,000
I1=$2,000
I2=$2,000
I3=$3,000
I4=$3,000
I5=$2,500
L=$1,000
0
1
2
3
4
5
C: Cost, I: Income, L: Salvage
The escalation rate is 10% per year in this example.
Calculate the NPV of this investment assuming an escalated
dollar minimum rate of return of 8%

This question is based on the following cash flows;
C0=$10,000
I1=$2,000
I2=$2,000
I3=$3,000
I4=$3,000
I5=$2,500
L=$1,000
0
1
2
3
4
5
C: Cost, I: Income, L: Salvage
The escalation rate is 10% per year in this example.
Calculate the escalated dollar ROR for this investment.
Please enter your response as a whole number to two
decimal places. For example, if your answer is 10.5%, you would
enter 10.50 in the text box.

This question is based on the following cash flows
C0=$10,000
I1=$2,000
I2=$2,000
I3=$3,000
I4=$3,000
I5=$2,500
L=$1,000
0
1
2
3
4
5
C: Cost, I: Income, L: Salvage
The escalation rate is 10% per year in this example.
Calculate the NPV of this investment assuming an escalated
dollar minimum rate of return of 8%
________________________________________________________________________________________________________
There are two steps to this problem. First you must calculate
the escalated value of each period's cash flow, remembering that
costs are negative numbers...

************************
I've done the work and got it wrong
My wrong answers:
NPV: 535.16
ROR: 9.81%
Please help
**************************
This question is based on the following cash flows
C0=$10,000
I1=$2,000
I2=$2,000
I3=$3,000
I4=$3,000
I5=$2,500
L=$1,000
0
1
2
3
4
5
C: Cost, I: Income, L: Salvage
The escalation rate is 10% per year in this example.
Part 1
Calculate the escalated dollar ROR for this investment.
Part 2
Calculate the NPV of this investment assuming an escalated
dollar minimum...

Suppose your firm would like to earn 10% yearly return from
the following two investment projects of equal risk.
Year (t) Cash flows from Project A (Ct) Cash flows from
Project B (Ct)
0 –$8,000 –$8,000
1 $2,000 $4,000
2 $3,000 $2,000
3 $5,000 $2,500
4 $1,000 $2,000
(a) If only one project can be accepted, based on the NPV
method which one should it be? Support your answer with
calculations.
(b) Suppose there is another four-year project (Project C)...

Project S has a cost of $10,000 and is expected to produce
benefits (cash flows) of $3,500 per year for 5 years. Project L
costs $25,000 and is expected to produce cash flows of $8,000 per
year for 5 years.
Calculate the two projects' NPVs, assuming a cost of capital of
14%. Round your answers to the nearest cent.
Project S
$
Project L
$
Which project would be selected, assuming they are mutually
exclusive?
Calculate the two projects' IRRs....

Question 1:
Sea Masters Co. has identified an investment project with the
following cash flows for the next 5 years. If the discount rate is
6.7 percent, the present value of these cash flows is $__________.
Round it to two decimal places without the $ sign,
e.g., 23456.34
Year Cash
Flows
1
$21,000
2 35,000
3
44,000
4 53,000
5
77,000
Question 2:
The present value of the following cash flow stream is $6,561
when discounted at...

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