Perform a financial analysis for a project where you will show
costs, discount factor for cost,...
Perform a financial analysis for a project where you will show
costs, discount factor for cost, and discounted costs as well as
benefit, discount factor for benefit and discounted benefit for
each year starting from year 0. Assume the projected cost and
benefits for this project are spread over four years as follows:
Estimated costs are $145,000 in year 0 and $45,000 each year in
years 1, 2, and 3, and estimated benefits are $0 in year 0 and
$210,000...
A five  year project has a projected net cash flow of $15,000,
$25,000, $30,000, $35,000,...
A five  year project has a projected net cash flow of $15,000,
$25,000, $30,000, $35,000, and $20,000 in the next five years. It
will cost $80,000 to implement the project. If the required rate of
return is 20%, conduct a discounted cash flow calculation to
determine the NPV and indicate if you would recommend this
project.
Net Present Value
Calculation
Initial Investment
Discount
Rate
Net Benefit Year 1
Net Benefit
Year 2...
Net Present Value
Calculation
Initial Investment
Discount
Rate
Net Benefit Year 1
Net Benefit
Year 2
New Benefit
Year 3
Present
Value
Is this a worthwhile
investment?
100,000
.06
50,000
50,000
50,000
100,000
.12
50,000
50,000
50,000
100.000
.24
50,000
50,000
50,000
200,000
.06
80,000
80,000
80,000
200,000
.36
100,000
100,000
100,000
500,000
.36
200,000
350,000
500,000
500,000
.36
500,00
350,000
200,000
Calculate the profitability index anx the net present value of the
following project
year 0 investment...
Calculate the profitability index anx the net present value of the
following project
year 0 investment 75,000
year 1. income. 25,000
year 2. income. 35,000
year 3. investment. 10,000
year 4. income. 40,000
discount rate. 9%
(Discounted payback period) Sheinhardt Wig Company is
considering a project that has the following cash flows:...
(Discounted payback period) Sheinhardt Wig Company is
considering a project that has the following cash flows: If the
project's appropriate discount rate is 9 percent, what is the
project's discounted payback period? The project's discounted
payback period is nothing years. (Round to two decimal
places.)
YEAR PROJECT CASH FLOW
0 60,000
1 20,000
2 50,000
3 65,000
4 55,000
5 40,000
Assume that the project is expected to return monetary benefits
of $20,000 the first year, and...
Assume that the project is expected to return monetary benefits
of $20,000 the first year, and increasing benefits of $5,000 until
the end of project life (year 1 = $20,000, year 2 = $25,000, year 3
= $30,000). The project also has onetime costs of $30,000, and
fixed recurring costs of $10,000 until the end of project life. The
project has a discount rate of 8% and a threeyear time
horizon.
Calculate overall net present value (NPV) of the project...
For the following project, calculate:
(a) NPV at the end of the project (discount rate 15%)...
For the following project, calculate:
(a) NPV at the end of the project (discount rate 15%)
(b) IRR at the end of the project.
Year (n)
0
1
2
3
4
Capex
$600,000




Income

$200,000
$200,000
$200,000
$200,000
Undiscounted cash flow
P/F (15%)
Discounted cash flow
IRR




*P/F is the discount factor, converting a future value into a
present value
A project has the following cash flow.
Year
Costs
Benefits
0
$10,000
0
1
$1,000
$5,000...
A project has the following cash flow.
Year
Costs
Benefits
0
$10,000
0
1
$1,000
$5,000
2
$1,000
$5,000
3
$2,000
$6,000
4
$2,0000
$3,000
Assuming a discount rate of 10%, estimate the following:
a)Net Present Value (NPV)
b)Discounted BenefitCost Ratio
c)Net discounted BenefitCost Ratio
d)Is the project feasible? Explain your answer
Net Present Value Versus Internal Rate of Return
For discount factors use Exhibit 12B1 and Exhibit...
Net Present Value Versus Internal Rate of Return
For discount factors use Exhibit 12B1 and Exhibit 12B2.
Skiba Company is thinking about two different modifications to
its current manufacturing process. The aftertax cash flows
associated with the two investments follow:
Year
Project I
Project II
0
$(100,000)
$(100,000)
1
—
63,857
2
134,560
63,857
Skiba's cost of capital is 12%.
Required:
1. Compute the NPV and the IRR for each
investment. Round present value calculations and your final NPV
answers...