Question

A new project is estimated to cost $43,516, its expected net cash flows are $12,384 per...

A new project is estimated to cost $43,516, its expected net cash flows are $12,384 per year for 8 years, and you have an expected return of 13 Percent. What is the present value of the cash flows?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Discount rate 13.000%
Year 0 1 2 3 4 5 6 7 8
Cash flow stream -43516 12384 12384 12384 12384 12384 12384 12384 12384
Discounting factor 1.000 1.130 1.277 1.443 1.630 1.842 2.082 2.353 2.658
Discounted cash flows project -43516.000 10959.292 9698.489 8582.733 7595.339 6721.539 5948.265 5263.951 4658.364
NPV = Sum of discounted cash flows
NPV A-B = 11253.61
Where
Discounting factor = (1 + discount rate)^(Corresponding period in years)
Discounted Cashflow= Cash flow stream/discounting factor
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
17- Project L has a cost of ?$81,000. Its expected net cash inflows are ?$90,000 per...
17- Project L has a cost of ?$81,000. Its expected net cash inflows are ?$90,000 per year for 8 years. What is the? project's payback? period? If the cost of capital is 9?%, what are the? project's net present value? (NPV) ? and what is the profitability index? (PI)? What is the? project's internal rate of return? (IRR)?
57. A project has estimated annual net cash flows of $52,800. It is estimated to cost...
57. A project has estimated annual net cash flows of $52,800. It is estimated to cost $675,840. Determine the cash payback period. Present the answer to one decimal place. ________ years
Project A cost $67,775 its expected net cash inflows are $10,000 per year for 10 years...
Project A cost $67,775 its expected net cash inflows are $10,000 per year for 10 years and its WACC is 8% what is its IRR
1. A project has an initial cost of $74,475, expected net cash inflows of $9,000 per...
1. A project has an initial cost of $74,475, expected net cash inflows of $9,000 per year for 8 years, and a cost of capital of 12%. What is the project's MIRR? Do not round intermediate calculations. Round your answer to two decimal places. 2. A project has an initial cost of $46,800, expected net cash inflows of $10,000 per year for 6 years, and a cost of capital of 13%. What is the project's PI? Do not round your...
Jasper Metals is considering installing a new molding machine is expected to produce operating cash flows...
Jasper Metals is considering installing a new molding machine is expected to produce operating cash flows of $58,000 per year for 7 years. At the beginning of the project, inventory will decrease by $18,400, accounts receivables will increase by $22,200, and accounts payable will increase by $15,900. At the end of the project, net working capital will return to the level it was prior to undertaking the new project. The initial cost of the molding machine is $258,000. The equipment...
project has estimated annual net cash flows of $70,000 for four years and is estimated to...
project has estimated annual net cash flows of $70,000 for four years and is estimated to cost $190,000. Assume a minimum acceptable rate of return of 10%. Use the The sum of the present values of a series of equal “Net cash flows” to be received at fixed time intervals.Present Value of an Annuity of $1 at Compound Interest table below. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909...
Middlefield Motors is evaluating a project that would cost 6,200 dollars today. The project is expected...
Middlefield Motors is evaluating a project that would cost 6,200 dollars today. The project is expected to have the following other cash flows: 2,350 dollars in 1 year, -2,480 dollars in 3 years, and 7,540 dollars in 4 years. The cost of capital of the project is 5.64 percent. What is the net present value of the project? They are also evaluating a project that would cost 4,360 dollars today. The project is expected to produce annual cash flows of...
A project has an initial cost of $55,000, expected net cash inflows of $12,000 per year...
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 estimated annual net cash flows of $12,500 for ten years and is estimated...
A project has estimated annual net cash flows of $12,500 for ten years and is estimated to cost $37,500. Assume a minimum acceptable rate of return of 20%. Use the Present Value of an Annuity of $1 at Compound Interest table below. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037...
A project has an initial cost of $57,000, expected net cash inflows of $12,000 per year...
A project has an initial cost of $57,000, expected net cash inflows of $12,000 per year for 8 years, and a cost of capital of 13%. What is the project's payback period? Round your answer to two decimal places.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT