Question

(Payback ​period, NPV,​ PI, and IRR calculations​) You are considering a project with an initial cash...

(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​?

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
​(Payback ​period, NPV,​ PI, and IRR calculations​) You are considering a project with an initial cash...
​(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 $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...
​(​NPV, ​PI, and IRR calculations​) Fijisawa Inc. is considering a major expansion of its product line...
​(​NPV, ​PI, and IRR calculations​) 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 ​$600 comma 000600,000 per year for 77 years. The appropriate required rate of return is 66 percent.a. Calculate the NPV. b. Calculate the PI. c. Calculate the IRR. d. Should this project...
A project has the following cash flows. What is the payback period, NPV, PI, IRR, MIRR,...
A project has the following cash flows. What is the payback period, NPV, PI, IRR, MIRR, and EAA? Assume an interest rate of 5%. Year CF ($) 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....
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...
(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...
(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...
7. The NPV and payback period Suppose you are evaluating a project with the cash inflows...
7. 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 $350,000 Year 2 600,000 Year 3 600,000 Year 4 450,000 If the project’s desired...
East Coast Television is considering a project with an initial outlay of​ $X (you will have...
East Coast Television is considering a project with an initial outlay of​ $X (you will have to determine this​ amount). It is expected that the project will produce a positive cash flow of $55,000 a year at the end of each year for the next 14 years. The appropriate discount rate for this project is 11 percent. If the project has an internal rate of return of 14 ​percent, what is the​ project's net present​ value? 1. If the project...
A project has an initial outlay of $25,000,000 in year 0, and an additional $15,000,000 in...
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%.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT