Question

Rocket Inc. is considering a project that has the following cash flow and WACC data. WACC: 10.00% Year 0 1 2 3 4 Cash flows -$1,000 $510 $440 $425 $405 What is the project's payback? What is the project's discounted payback? Is the project worthwhile to undertake? (Would you undertake the project?) Why?

Answer #1

Calc:-

The project is worthwhile to undertake when the maximum payback allowable period is 3 years.

Masulis Inc. is considering a project that has the following
cash flow and WACC data. What is the project's discounted payback?
WACC: 10.00%
Year 0 1 2 3 4
Cash flows -$1,300 $525 $485 $445 $405
Group of answer choices
3.32 years 2.62 years 2.75 years 3.42 years

Talent Inc. is considering a project that has the following cash
flow and WACC data.
WACC: 8%
Year 0 1 2 3
Cash flows -$1,200 $400 $500 $500
(1) What is the project's NPV?
(2) What is the project's IRR?
(3) What is the project's Payback Period?
(4) What is the project's Discounted Payback Period?

Rockmont Recreation Inc. is considering a project that has the
following cash flow and WACC data. What is the project's NPV? Note
that a project's projected NPV can be negative, in which case it
will be rejected.
WACC = 10%
Year:
0
1
2
3
Cash flows:
-$1,000
$450
$440
$430

Q1.
Babcock Inc. is considering a project that has the following
cash flow and WACC data. What is the project's NPV? Enter your
answer rounded to two decimal places. Do not enter $ or comma in
the answer box. For example, if your answer is $12,300.456 then
enter as 12300.46 in the answer box.
WACC:
13%
Year:
0
1
2
3
Cash flows:
-$1,250
$400
$500
$600
Q2.
Garvin Enterprises is considering a project that has the
following cash flow...

DS is considering a project that has the following cash flow and
WACC data. What is the project's MIRR?
WACC: 10.00%
Year
0
1
2
3
Cash flows
-$2,000
$800
$800
$1,000

Shisman Designs is considering a project that has the following
cash flow and WACC data. What is the project's discounted
payback?
WACC:
8.00%
Year
0
1
2
3
Cash flows
-$650
$400
$600
$600

Fernando Designs is considering a project that has the following
cash flow and WACC data. What is the project's discounted payback?
(Hurdle Rate = 10.00%)
Year 0 cash flow: -$2,000
Year 1 CF: $600
Year 2 CF: $625
Year 3 CF: $650
Year 4 CF: $750

Anderson Systems is considering a project that has the following
cash flow and WACC data.
WACC = 11.50%
Year
0
1
2
3
4
Cash flows
($1,000)
$350
$350
$350
$350
a) What is the project's NPV?
b) What is the project’s IRR?
c) What is the project’s payback period?

Hindelang Inc. is considering a project that has the following
cash flow and WACC data. What is the project's MIRR? Enter your
answer rounded to two decimal places. Do not enter % in the answer
box. For example, if your answer is 0.12345 or 12.345% then enter
as 12.35 in the answer box.
WACC:
14%
Year:
0
1
2
3
4
Cash flows:
-$875
$350
$375
$400
$425

Fernando Designs is considering a project that has the
following cash flows and WACC data. What is the project's
discounted payback period? (10 points) What is the project’s
modified internal rate of return?
WACC: 10.00%
Year
0
1
2
3
Cash
flows
-$900
$500
$500 $500

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