Question

1. A project has an initial cost of $63,275, expected net cash inflows of $15,000 per year for 9 years, and a cost of capital of 8%. What is the project's NPV? (Hint: Begin by constructing a time line.) Do not round your intermediate calculations. Round your answer to the nearest cent.

2. A project has an initial cost of $63,275, expected net cash
inflows of $15,000 per year for 9 years, and a cost of capital of
8%. What is the project's NPV? (*Hint:* Begin by
constructing a time line.) Do not round your intermediate
calculations. Round your answer to the nearest cent.

3. A project has an initial cost of $38,475, expected net cash inflows of $8,000 per year for 6 years, and a cost of capital of 14%. What is the project's PI? Do not round your intermediate calculations. Round your answer to two decimal places.

Answer #1

Solution

**Question 1 )**

**NPV = 30,428.32**

Question 2 is same as the question 1

Question 3 )

PI = Present value of future cash flow / Initial Investment = 31109.34/38475 = 0.81

A project has an initial cost of $36,400, expected net cash
inflows of $15,000 per year for 12 years, and a cost of capital of
14%. What is the project's NPV? (Hint: Begin by constructing a time
line.) Do not round your intermediate calculations. Round your
answer to the nearest cent.

A project has an initial cost of $66,775, expected net cash
inflows of $15,000 per year for 11 years, and a cost of capital of
8%. What is the project's NPV? (Hint: Begin by constructing a time
line.) Do not round your intermediate calculations. Round your
answer to the nearest cent.

NPV
A project has an initial cost of $63,800, expected net cash
inflows of $12,000 per year for 10 years, and a cost of capital of
12%. What is the project's NPV? (Hint: Begin by
constructing a time line.) Do not round intermediate calculations.
Round your answer to the nearest cent.
$

A project has an initial cost of $35,475, expected net cash
inflows of $14,000 per year for 7 years, and a cost of capital of
14%. What is the project's NPV? (Hint: Begin by
constructing a time line.) Do not round intermediate calculations.
Round your answer to the nearest cent.
$

A project has an initial cost of $45,300, expected net cash
inflows of $12,000 per year for 12 years, and a cost of capital of
14%. What is the project's NPV? (Hint: Begin by constructing a time
line.) Do not round your intermediate calculations. Round your
answer to the nearest cent.

A project has an initial cost of $74,125, expected net cash
inflows of $14,000 per year for 11 years, and a cost of capital of
13%. What is the project's NPV? (Hint: Begin by constructing a time
line.) Do not round your intermediate calculations. Round your
answer to the nearest cent.

A project has an
initial cost of $54,650, expected net cash inflows of $14,000 per
year for 9 years, and a cost of capital of 11%. What is the
project's NPV? (Hint: Begin by constructing a time line.)
Do not round your intermediate calculations. Round your answer to
the nearest cent.

Profitability Index
A project has an initial cost of $55,075, expected net cash
inflows of $15,000 per year for 12 years, and a cost of capital of
8%. What is the project's PI? (Hint: Begin by constructing
a time line.) Do not round intermediate calculations. Round your
answer to two decimal places.

A project has an initial cost of $55,000, expected net cash
inflows of $12,000 per year for 8 years, and a cost of capital of
13%. What is the project's MIRR? (Hint: Begin by
constructing a time line.) Do not round intermediate calculations.
Round your answer to two decimal places.
A project has an initial cost of $55,000, expected net cash
inflows of $10,000 per year for 11 years, and a cost of capital of
12%. What is the project's...

A project has an initial cost of $70,000, expected net cash
inflows of $13,000 per year for 11 years, and a cost of capital of
12%. What is the project's MIRR? (Hint: Begin by
constructing a time line.) Do not round intermediate calculations.
Round your answer to two decimal places.
%

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