Question

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 MIRR if the re-investment rate is 10 percent?

g. What is the project’s MIRR if the re-investment rate is 12 percent?

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 ​$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​?
​(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...
(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...
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%.
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%.
11-1 If Company XYZ plans to invest in a project with initial capital outlay $52,125, annual...
11-1 If Company XYZ plans to invest in a project with initial capital outlay $52,125, annual net cash inflow $12,000 for 8 years, and discount rate 12%, what is the Company XYZ’s NPA? 11-2 For the Company XYZ’s same project as in 11-1, what is the IRR for the project? There are two projects: Project A and Project B Project A: CF0 = -6000; CF1-5 = 2000; I/YR = 14. Calculate NPV, IRR, MIRR, Payback period, and discounted payback period...
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 =...
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. What is the payback period for the project? What is the discounted payback period for the project? What is the IRR for the project? What is the NPV for the project? What is the MIRR for the project?                                           PLEASE SHOW STEPS AND SOLUTION
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.
A project has the following total (or net) cash flows.                ________________________________________             
A project has the following total (or net) cash flows.                ________________________________________                 Year         Total (or net) cash flow                ________________________________________ 1 $50,000 2 70,000 3 80,000 4 100,000 _______________________________________    The required rate of return on the project is 13 percent. The initial investment (or initial cost or initial outlay) of the project is $100,000. a) Find the (regular) payback period of the project. b) Compute the discounted payback period of the project.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT