Question

Polk Products is considering an investment project with the following cash flows (in 000s): Year 0...

Polk Products is considering an investment project with the following cash flows (in 000s):

Year 0

Year 1

Year 2

Year 3

Cashflow

-100

90

90

30

The company has a 10% cost of capital.

  1. What is the payback period for the project?
  2. What is the discounted payback period for the project?
  3. What is the IRR for the project?
  4. What is the NPV for the project?
  5. What is the MIRR for the project?

                                          PLEASE SHOW STEPS AND SOLUTION

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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
ABC Corporation is considering a project that provides the following cash flows steam: Year 0 1...
ABC Corporation is considering a project that provides the following cash flows steam: Year 0 1 2 3 4 5 Cash flows -$1,000 $375 $425 $250 $110 $100 If WACC is 10%, what is NPV, and should the company accept the project? Find IRR, MIRR, payback, and discounted payback period.
ABC Corporation is considering a project that provides the following cash flows steam: Year 0 1...
ABC Corporation is considering a project that provides the following cash flows steam: Year 0 1 2 3 4 5 Cash flows -$1,000 $375 $425 $250 $110 $100 If WACC is 10%, what is NPV and should the company accept the project? Find IRR, MIRR, payback, and discounted payback period. Considering the following projects. Project Year 0 1 2 3 4 A Cash flows -$100 $35 $35 $35 $35 B Cash flows -$100 $60 $50 $40 $30 Project A has...
You are considering a project with an initial cash outlay of $100,000 and expected free cash...
You are considering a project with an initial cash outlay of $100,000 and expected free cash flows of $23,000 at the end of each year for 6 years. The required rate of return for this project is 10 percent. a. What is the project’s payback period? b. What is the project’s discounted payback period? c. What is the project’s NPV ? d. What is the project’s PI ? e. What is the project’s IRR ? f. What is the project’s...
Gio's Restaurants is considering a project with the following expected cash? flows: Year Project Cash Flow?...
Gio's Restaurants is considering a project with the following expected cash? flows: Year Project Cash Flow? (millions) 0 ?$(210?) 1 100 2 72 3 100 4 90 If the? project's appropriate discount rate is 11percent, what is the? project's discounted payback? period? The? project's discounted payback period is ____ years? Round to 2 decimal places
Telesis Corp is considering a project that has the following cash flows: Year Cash Flow 0...
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 =...
Sky Enterprises is considering an investment project with the following cash flows: Year                   Cash Flow 0      &nbs
Sky Enterprises is considering an investment project with the following cash flows: Year                   Cash Flow 0                      -$100,000 1                         30,000 2                         40,000 3                         60,000 4                         90,000 The company has a 7% cost of capital. What is the project’s discounted payback period? A. 2.76 years B. 1.86 years C. 1.86 years D. 1.67 years E. more than 3 years
Braun Industries is considering an investment project which has the following cash flows: Year Cash Flow...
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 =...
A project has the following annual net cash flows: Year 0: -19,000 Year 1: 8,000 Year...
A project has the following annual net cash flows: Year 0: -19,000 Year 1: 8,000 Year 2: 11,000 Year 3: 6,000 Year 4: 4,500 1.The firm's WACC is 14%. Calculate IRR. 2. Calculate MIRR for the project in the previous problem. 3. Calculate the project's NPV. (Round to the nearest cent) 4. Calculate the project's EAA. 5. Calculate the project's payback period. 6. Calculate the project's discounted payback period. (Round to two decimal places)
Gardial Fisheries is considering two mutually exclusive investments. The projects' expected net cash flows are as...
Gardial Fisheries is considering two mutually exclusive investments. The projects' expected net cash flows are as follows: Expected Net Cash Flows Time Project A Project B 0 ($375) ($575) 1 ($300) $190 2 ($200) $190 3 ($100) $190 4 $600 $190 5 $600 $190 6 $926 $190 7 ($200) $0 a. If each project's cost of capital is 12%, which project should be selected? If the cost of capital is 18%, what project is the proper choice? @ 12% cost...
A project has the following forecasted cash flows: Cash Flows Thousands of dollars C0 C1 C2...
A project has the following forecasted cash flows: Cash Flows Thousands of dollars C0 C1 C2 C3 -100 40 60 50 The investor expected rate of return is 10%. The cost of capital is 12%. Required: 1.What will you choose to be the discount rate? Why? 2.Please calculate the payback period (PP) and return on investment (ROI). 3.Please calculate NPV，PVI and IRR.. 4.Make decision based on the above calculation and explain the reasons. 5.David said that the profit is the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT