Question

10. Calculate the NPV of a project with initial capital outlay of ₡80,000 that will provide ₡25,000 annual cash inflows indefinitely. The required rate of return is 20%.

Answer #1

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A project has an initial outlay of $10293 and the profitability
index of 1.75. The project is expected to generate equal free cash
inflows in each of the next 8 years. What is the project's annual
free cash inflow (to the nearest dollar) if its required rate of
return is 8.77%?
Blank 1. Calculate the answer by read surrounding text.

PROJECT A
PROJECT B
Initial Outlay
minus−$5000050,000minus
−$7000070,000
Inflow year 1
1200012,000
1300013,000
Inflow year 2
1200012,000
1300013,000
Inflow year 3
1200012,000
1300013,000
Inflow year 4
1200012,000
1300013,000
Inflow year 5
12 00012,000
1300013,000
Inflow year 6
12 00012,000
1300013,000
(NPV, PI, and IRR calculations) You are considering two
independent projects, project A and project B. The initial cash
outlay associated with project A is $50 comma 000, and the
initial cash outlay associated with project B is $70 comma...

A company invests in a new project that requires an initial
capital outlay of $835087. The project will generate annual net
cash flows of $196478 over a period of 9 years. The after-tax cost
of capital is 10%. In addition, a working capital outlay of $55156
will be required. This working capital outlay will be recovered at
the end of the project’s life.
What is the net present value of the project?
Select one:
a. $264670
b. $296434
c. $933215...

A project has an initial outlay of $11351 and the profitability
index of 1.12. The project is expected to generate equal free cash
inflows in each of the next 5 years. What is the project's annual
free cash inflow (to the nearest dollar) if its required rate of
return is 8.08%?

The Aubergine Corporation is considering investing in a project
that requires an initial outlay of $400,000 and has a profitability
index of 1.5. It is expected to generate equal annual cash flows
over the next 12 years. The required return for this project is
20%. The NPV of this project is:

Calculate the NPV of a project that has an outlay of $200,000
and has annual net cash flows of $50000 per year over 6 years. The
project has a salvage value (disposal value) of 10% of its original
value. The required rate of return for projects of similar risk is
0.1.
Note that the rate of return is quoted as a decimal, e.g. 12%
p.a. is written as .12 in the question above. Your answer must be
accurate to the...

A project has an initial outlay of $2,378. The project will
generate annual cash flows of $485 over the 5-year life of the
project and terminal cash flows of $277 in the last year of the
project. If the required rate of return on the project is 20%, what
is the net present value (NPV) of the project?
Note: Enter your answer rounded off to two decimal points. Do
not enter $ or comma in the answer box.

(NPV with varying required rates of return) Gubanich Sportswear
is considering building a new factory to produce aluminum baseball
bats. This project would require an initial cash outlay of
$4000000 and would generate annual free cash inflows of $1200000
per year for 8 years. Calculate the project's NPV given: a. A
required rate of return of 8 percent b. A required rate of return
of 10 percent c. A required rate of return of 14 percent

Santon inc. Wants to analyze the NPV profile for a five years
project that is considered to be risky. The project initial outlay
or cost is 90,000$ and it has respective cash inflows for years
1,2,3,4 and 5 of 15,000$,25,000$,35,000$,45,000$ and 55,000$.
Calculate its NPV and indicate whether the NPV becomes negative or
positive by using discount rate of 14%

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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