Question

Financial management Use formula and get calculation in detail Project X costs $52,000 and is expected...

Financial management

Use formula and get calculation in detail

Project X costs $52,000 and is expected to generate net cashflows of $12,000 per year for 5 years, and its WACC is 12%.

  1. What is the project’s payback period?
  2. What is the NPV?
  3. What is the IRR?
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Financial management Use formula and get calculation in detail Project X costs $52,000 and is expected...
Financial management Use formula and get calculation in detail Project X costs $52,000 and is expected to generate net cashflows of $12,000 per year for 5 years, and its WACC is 12%. What is the project’s payback period? What is the NPV? What is the IRR?
Financial Management Please use formula and get calculation in detail. Acme industries is considering a proposed...
Financial Management Please use formula and get calculation in detail. Acme industries is considering a proposed project whose estimated NPV is $12million.This estimate assumes that economic conditions will be average. However, the CFO wanted to do a scenario analysis and obtained the following results: Economic Situation       Probability NPV Recession 5% -$70 million Below Average 20%                     -$20 million Average 50%                     $12 million Above Average 20%                     $20 million Boom 5% $30 million Calculate the project’s expected NPV, standard deviation, and coefficient...
Financial Management Please use formula and get calculation in detail. Acme industries is considering a proposed...
Financial Management Please use formula and get calculation in detail. Acme industries is considering a proposed project whose estimated NPV is $12million.This estimate assumes that economic conditions will be average. However, the CFO wanted to do a scenario analysis and obtained the following results: Economic Situation       Probability NPV Recession 5% -$70 million Below Average 20% -$20 million Average 50%   $12 million Above Average 20% $20 million Boom 5% $30 million Calculate the project’s expected NPV, standard deviation, and coefficient...
Financial Management Please show formula and get calculation in detail ABC company just paid a dividend...
Financial Management Please show formula and get calculation in detail ABC company just paid a dividend of $3 per share. It is expected to grow at 20% for the next 2 years and then at 4% thereafter. The required rate of return is 6%. What is the price of Acme stock?
Project “Lane” costs $52,125, its expected cash inflows are $11,000 per year for the first four...
Project “Lane” costs $52,125, its expected cash inflows are $11,000 per year for the first four years and $9,000 for the next four years. The project’s WACC is 10%. What is the project’s NPV? What is the project IRR?
1. Project K costs $45,000, its expected cash inflows are $15,000 per year for 9 years,...
1. Project K costs $45,000, its expected cash inflows are $15,000 per year for 9 years, and its WACC is 11%. What is the project's NPV? Round your answer to the nearest cent. 2. Project K costs $59,542.90, its expected cash inflows are $12,000 per year for 10 years, and its WACC is 14%. What is the project's IRR? Round your answer to two decimal places. 3. Project K costs $75,000, its expected cash inflows are $15,000 per year for...
PROBLEM 2 Winston Clinic is evaluating a project that costs $52,125 and has expected net cash...
PROBLEM 2 Winston Clinic is evaluating a project that costs $52,125 and has expected net cash flows of $12,000 per year for eight years. The first inflow occurs one year after the cost outflow, and the project has a cost of capital of 12 percent. a. What is the project's payback? b. What is the project's NPV? Its IRR? c. Is the project financially acceptable? Explain your answer.
A project has an initial cost of $52,125, expected net cash inflows of $12,000 per year...
A project has an initial cost of $52,125, expected net cash inflows of $12,000 per year for 8 years, and a cost of capital of 12%. What is the project's NPV? (Hint: Begin by constructing a time line.) , What is the project IRR? What is the project's payback period? What is the project's discounted period?
Project L costs $44,581.60, its expected cash inflows are $10,000 per year for 9 years, and...
Project L costs $44,581.60, its expected cash inflows are $10,000 per year for 9 years, and its WACC is 13%. What is the project's IRR? Round your answer to two decimal places. Project L costs $50,000, its expected cash inflows are $12,000 per year for 7 years, and its WACC is 10%. What is the project's payback? Round your answer to two decimal places.
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...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT