Question

(*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*?

Answer #1

(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...

You are considering a project with an initial cash outlay of
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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...

(NPV,
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Fijisawa Inc. is considering a major expansion of its product
line and has estimated the following cash flows associated with
such an expansion. The initial outlay would be
$2 comma 000 comma 0002,000,000,
and the project would generate incremental free cash flows
of
$600 comma 000600,000
per year for
77
years. The appropriate required rate of return is
66
percent.a. Calculate the
NPV.
b. Calculate the
PI.
c. Calculate the
IRR.
d. Should this project...

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 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

(A)
A company is considering a major expansion of its product line. The
initial outlay would be $10,100,000 and the project would generate
cash flows of $1,290,000 per year for 20 years. The appropriate
discount rate is 10%. (a) calculate the NPV (b) calculate the PI
(c) calculate the IRR (d) should this project be excepted?
(B) The same company is considering a new system for its lot.
The system will provide annual labor savings and reduced waste
totaling $175,000...

(IRR, payback, and calculating a missing cash flow) Mode
Publishing is considering building a new printing facility that
will involve a large initial outlay and then result in a series of
positive cash flows for 4 years. The estimated cash flows
associated with this project are:
Year
Project Cash Flow
0
?
1
800 Million
2
400 Million
3
500 Million
4
100 Million
If you know that the project has a regular payback of 2.8 years,
what is the...

The NPV and payback period
Suppose you are evaluating a project with the cash inflows shown
in the following table. Your boss has asked you to calculate the
project’s net present value (NPV). You don’t know the project’s
initial cost, but you do know the project’s regular, or
conventional, payback period is 2.50 years.
The project's annual cash flows are:
Year
Cash Flow
Year 1
$400,000
Year 2
600,000
Year 3
500,000
Year 4
475,000
If the project’s desired rate...

A project has an initial outlay of $25,000,000 in year 0, and
an additional $15,000,000 in year 1. Free cash flows will then be
$4,500,000 per year for 10 years.
What is the Payback for the project?
Calculate the NPV, IRR, MIRR and PI for the project, if your
required rate is 12%.

A project has an initial outlay of $25,000,000 in year 0, and
an additional $15,000,000 in year 1. Free cash flows will then be
$4,500,000 per year for 10 years.
What is the Payback for the project?
Calculate the NPV, IRR, MIRR and PI for the project, if your
required rate is 12%.

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