Question

A project will require an investment of 500 now, 700 in one year and 900 in...

A project will require an investment of 500 now, 700 in one year and 900 in two years. The project will then generate starting in year 3, an annual CF of 700 for 4 years. The discount rate is 10%. What is the NPV of this project?

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
Your company received an investment proposal which requires an initial investment of $5439783 now. The project...
Your company received an investment proposal which requires an initial investment of $5439783 now. The project will last for 5 years. You also have the following information about this project; Years 1 2 3 4 5 CF Last 6 digits of your student ID 120,000 130,000 140,000 543978 Discount Rate 5% 7% 8% 10% 10% If you receive the above cash flows at the end of each year, calculate the NPV using both spreadsheet method and excel NPV function, and...
A firm is considering a three-year project that will require an initial investment of $100 million....
A firm is considering a three-year project that will require an initial investment of $100 million. The success of the project depends largely on the future state of the economy. If the economy turns out to be “average,” the project will generate annual cash flows of $50 million during Years 1 through 3. If the economy “booms,” the project will generate annual cash flows of $80 million in Years 1 through 3. If the economy goes into “recession,” the project...
Rochester Inc. is considering an investment project that will require an initial investment of CF0 =...
Rochester Inc. is considering an investment project that will require an initial investment of CF0 = -$100,000. The project will bring in positive cashflows for 4 years, with CF1 =CF1 =CF3 =CF4 =$32,500. The company will use a discount rate of 7%. What is the equivalent annual annuity of the project? (10 points)
4. You have a fourth project that will cost 1700 to invest in one year from...
4. You have a fourth project that will cost 1700 to invest in one year from now, will generate a cash inflow of 150 starting in year three and continuing forever. If the discount rate is 8%, what is the NPV and should you accept the project based on the NPV? Please show all of your work
Industrialization Enterprise is considering a three-year project that will require an initial investment of $43,500. If...
Industrialization Enterprise is considering a three-year project that will require an initial investment of $43,500. If market demand is strong, Industrialization Enterprise thinks that the project will generate cash flows of $28,500 per year. However, if market demand is weak, the company believes that the project will generate cash flows of only $1,750 per year. The company thinks that there is a 50% chance that demand will be strong and a 50% chance that demand will be weak. If the...
Determine the present value now of an investment of $3,000 made one year from now and...
Determine the present value now of an investment of $3,000 made one year from now and an additional $3,000 made two years from now if the annual discount rate is 4 percent. Please Calculate Using Excel thanks
A project requires an initial investment of $950,000 depreciated straight-line to $0 in 10 years. The...
A project requires an initial investment of $950,000 depreciated straight-line to $0 in 10 years. The investment is expected to generate annual sales of $600,000 with annual costs of $250,000 for 10 years. Assume a tax rate of 30% and the NPV of $300,000. What is a discount rate of the project?
What is the NPV of project A? The project would require an initial investment in equipment...
What is the NPV of project A? The project would require an initial investment in equipment of 37,000 dollars and would last for either 3 years or 4 years (the date when the project ends will not be known until it happens and that will be when the equipment stops working in either 3 years from today or 4 years from today). Annual operating cash flows of 14,800 dollars per year are expected each year until the project ends in...
29. What is the NPV of project A? The project would require an initial investment in...
29. What is the NPV of project A? The project would require an initial investment in equipment of 76,000 dollars and would last for either 3 years or 4 years (the date when the project ends will not be known until it happens and that will be when the equipment stops working in either 3 years from today or 4 years from today). Annual operating cash flows of 22,800 dollars per year are expected each year until the project ends...
What is the NPV of project A? The project would require an initial investment in equipment...
What is the NPV of project A? The project would require an initial investment in equipment of 48,000 dollars and would last for either 3 years or 4 years (the date when the project ends will not be known until it happens and that will be when the equipment stops working in either 3 years from today or 4 years from today). Annual operating cash flows of 16,320 dollars per year are expected each year until the project ends in...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT