Question

What is the net present value of a project with the following cash flows if the...

What is the net present value of a project with the following cash flows if the discount rate is 10 percent?

Year 0               1                2               3              4

Cash Flow -$32,000    $9,000     $10,000    $15,200      $7,800

  • A. $1,085.25

  • B. $1,193.77

  • C. $3,498.28

  • D. $4,102.86

  • E. $4,513.15

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
What is the net present value of a project with the following cash flows if the...
What is the net present value of a project with the following cash flows if the discount rate is 11 percent? Year 0: $16500 Year 1: $1400 Year 2: $1500 Year 3: $1750 Year 4: $0
What is the equivalent annual annuity for a 4-yr project with the following cash flows and...
What is the equivalent annual annuity for a 4-yr project with the following cash flows and a discount rate of 9%? Year Cash Flow 0 (175,000) 1 45,000 2 55,000 3 65,000 4 85,000 What is the payback period for a project with the following cash flows: Year Cash Flow 0 (175,000) 1 45,000 2 55,000 3 65,000 4 85,000 What is the net present value for a project with the following cash flows and a discount rate of 9%?...
Net present value. Quark Industries has a project with the following projected cash​ flows: Initial​ cost:...
Net present value. Quark Industries has a project with the following projected cash​ flows: Initial​ cost: ​$200,000 Cash flow year​ one: ​$23,000 Cash flow year​ two: ​$72,000 Cash flow year​ three: ​$157,000 Cash flow year​ four: ​$157,000 a.  Using a discount rate of 10​% for this project and the NPV​ model, determine whether the company should accept or reject this project. b.  Should the company accept or reject it using a discount rate of 14​%? c.  Should the company accept...
What are the Net Present Value and Internal Rate of Return for the following cash flows...
What are the Net Present Value and Internal Rate of Return for the following cash flows - assuming a 3.5% discount rate? Year 0: ($35,900) Year 1: $20,750 Year 2: ($16,750) Year 3: $32,100 Year 4: $12,525 Year 5: $18,220 Is the project profitable on a discounted basis? Is it something we would want to pursue as an organization?
Shannon industries is considering a project that has the following cash flows: Year Project cash flow...
Shannon industries is considering a project that has the following cash flows: Year Project cash flow 0 $-6,240 1 $1,980 2 $3,750 3 ? 4 $1,000 The project has a payback of 2.85 years. The firm's cost of capital is 10 percent. what is the project's net present value (NPV)? a) 874.87 b) -146.92 c) 436.96 d) 727.95 e) -207.02
A project has the following cash flows:                                    &nbs
A project has the following cash flows:                                                                                  Project Year                    Cash Flow 0                         -$3,233 1                            1,000 2                            1,000 3                            1,000 4                            1,000 Its cost of capital is 10 percent.  What is the project’s Net Present Value?
What is the present value of the following net cash flows if the discount rate is...
What is the present value of the following net cash flows if the discount rate is 12%: Year Cash Flow 1-5 $10,000 each year 6-10 $15,000 each year 11-15 $17,000 each year A. $ 86,462 B. $ 79,252 C. $151,400 D. $144,037 Sarah borrowed $125,000 to buy a house, her your loan cost was 11% and she promised to repay the loan in 15 equal annual payments. What is the principal outstanding after the first loan payment? A. $121,367 B....
What will be the net present value of a project that provides net cash flow of...
What will be the net present value of a project that provides net cash flow of $20,000 at the end of the first year, $7,000 at the end of the second year, and $13,000 at the end of the third year? The initial cost is $8,000 and the appropriate discount rate is 10%. Tophill Corporation is considering a project that will pay $10,000 at the end of the first year, $22,000 at the end of the second year, and $40,000...
What is the net present value of the stadium project, which is a 3-year project where...
What is the net present value of the stadium project, which is a 3-year project where Fairfax Pizza would sell pizza in the baseball stadium? The project would involve an initial investment in equipment of 120,000 dollars today. To finance the project, Fairfax Pizza would borrow 120,000 dollars. The firm would receive 120,000 dollars from the bank today and would pay the bank 147,600 dollars in 3 years (consisting of an interest payment of 27,600 dollars and a principal payment...
A project has the following total (or net) cash flows.                __________________________________________            &nbs
A project has the following total (or net) cash flows.                __________________________________________               Year          Total (or net) cash flow                _________________________________________ 1 $20,000 2 30,000 3 50,000 4 60,000 _________________________________________ The required rate of return on the project is 15 percent. The initial investment (or initial cost or initial outlay) of the project is $80,000. a) Find the net present value (NPV) of the project. b) Find the profitability index (PI) of the project. c) Calculate the modified internal rate...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT