Question

Rooster Co. has identified an investment project with the following cash flows. Year Cash Flow 1 $ 970 2 760 3 1,430 4 1,790 Requirement 1: If the discount rate is 9 percent, what is the present value of these cash flows? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Present value $ Requirement 2: What is the present value at 17 percent? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Present value $ Requirement 3: What is the present value at 23 percent? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Present value $

Answer #1

1)

Present value of cash flows = 970 / (1 + 0.09)^{1} + 760
/ (1 + 0.09)^{2} + 1,430 / (1 + 0.09)^{3} + 1,790 /
(1 + 0.09)^{4}

Present value of cash flows = 889.90826 + 639.6768 + 1,104.22238 + 1,268.08113

**Present value of cash flows = $3,901.89**

2)

Present value of cash flows = 970 / (1 + 0.17)^{1} + 760
/ (1 + 0.17)^{2} + 1,430 / (1 + 0.17)^{3} + 1,790 /
(1 + 0.17)^{4}

Present value of cash flows = 829.05983 + 555.1903 + 892.8499 + 955.23359

**Present value of cash flows = $3,232.33**

**3)**

Present value of cash flows = 970 / (1 + 0.23)^{1} + 760
/ (1 + 0.23)^{2} + 1,430 / (1 + 0.23)^{3} + 1,790 /
(1 + 0.23)^{4}

Present value of cash flows = 788.61789 + 502.34649 + 768.459 + 782.04652

**Present value of cash flows = $2,841.47**

Consider the following cash flow:
Year
Cash Flow
2
$
21,000
3
39,000
5
57,000
Assume an interest rate of 7.8 percent per year.
Requirement 1:
If today is Year 0, what is the future value of the cash flows
five years from now? (Do not include the dollar signs
($). Enter rounded answer as directed, but do not
use the rounded numbers in intermediate calculations.
Round your answer to 2 decimal places (e.g.,
32.16).)
Future value
$
Requirement 2:...

Fuente, Inc., has identified an investment project with the
following cash flows.
Year
Cash Flow
1
$1070
2
$1300
3
$1520
4
$2260
a.
If the discount rate is 8 percent, what is the future value of
these cash flows in Year 4? (Do not round intermediate
calculations and round your answer to 2 decimal places, e.g.,
32.16.)
b.
If the discount rate is 11 percent, what is the future value of
these cash flows in Year 4? (Do not...

Fuente, Inc., has identified an investment project with the
following cash flows.
Year
Cash Flow
1
$
1,090
2
1,320
3
1,540
4
2,280
a.
If the discount rate is 7 percent, what is the future value of
these cash flows in Year 4?(Do not round intermediate
calculations and round your answer to 2 decimal places, e.g.,
32.16.)
b.
If the discount rate is 13 percent, what is the future value of
these cash flows in Year 4? (Do not...

A project has the following cash flows:
Year
Cash Flow
0
$
72,500
1
–51,500
2
–28,000
What is the IRR for this project? (Do not round
intermediate calculations and enter your answer as a percent
rounded to 2 decimal places, e.g., 32.16.)
Internal rate of return
%
What is the NPV of this project if the required return is 6
percent? (A negative answer should be indicated by a minus
sign. Do not round intermediate calculations and round your...

A project has the following cash flows:
Year Cash Flow
0 –$ 16,600
1 7,300
2 8,600
3 7,100
What is the NPV at a discount rate of zero percent? (Do not
round intermediate calculations and round your answer to the
nearest whole number, e.g., 32.)
What is the NPV at a discount rate of 12 percent? (Do not round
intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.)
What is the NPV at a discount rate...

A project has the following cash flows: Year Cash Flow 0 $
68,500 1 –44,500 2 –31,200 what is the net present value of this
project if the required rate of return is 4 percent? (A negative
answer should be indicated by a minus sign. Do not round
intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.)

A project has the following cash flows: Year Cash Flow 0 –$
15,400 1 6,100 2 7,400 3 5,900 What is the NPV at a discount rate
of zero percent? (Do not round intermediate calculations and round
your answer to the nearest whole number, e.g., 32.) NPV $ 4,000
What is the NPV at a discount rate of 8 percent? (Do not round
intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.) NPV $ 1,276.06 What is...

A project that provides annual
cash flows of $2,700 for nine years costs $8,800 today.
Requirement
1:
At a required return of 9 percent, what is the NPV of the
project? (Do not round intermediate calculations. Round
your answer to 2 decimal places (e.g.,
32.16).)
NPV
$
Requirement
2:
At a required return of 28 percent, what is the NPV of the
project? Use the IRR function. (Do not round intermediate
calculations. A negative amount should be indicated by a...

Problem 8-9 Calculating NPV [LO 4]
Consider the following cash flows:
Year
Cash Flow
0
–$
33,000
1
14,400
2
17,300
3
11,800
What is the NPV at a discount rate of zero percent? (Do not
round intermediate calculations and round your answer to the
nearest whole number, e.g., 32.)
Net present value
$
What is the NPV at a discount rate of 12 percent? (Do not
round intermediate calculations and round your answer to 2 decimal...

Year Cash Flow 1 $ 1,270 2 1,210 3 1,580 4 1,940 If the discount
rate is 10 percent, what is the present value of these cash flows?
(Do not round intermediate calculations and round your answer to 2
decimal places, e.g., 32.16.) Present value $ What is the present
value at 18 percent? (Do not round intermediate calculations and
round your answer to 2 decimal places, e.g., 32.16.) Present value
$ What is the present value at 24 percent?...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 1 minute ago

asked 18 minutes ago

asked 35 minutes ago

asked 41 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 3 hours ago