Question

calculate the NPV of 20-years with cost of$400,000 and annual cash flows of $50,000 in years...

calculate the NPV of 20-years with cost of$400,000 and annual cash flows of $50,000 in years 1-10and $25,000 in years 11-20.the company's required rate of return is 10%。 【Using the financial calculator】

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Net present value is solved using a financial calculator. The steps to solve on the financial calculator:

  • Press the CF button.
  • CF0= -$400,000. It is entered with a negative sign since it is a cash outflow.
  • Cash flow for each year should be entered.
  • Press Enter and down arrow after inputting each cash flow.
  • After entering the last cash flow cash flow, press the NPV button and enter the interest rate.
  • Press enter after that. Press the down arrow and CPT buttons to get the net present value.

Net present value at 10% required rate of return is -$33,546.73.

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
Calculating NPV and IRR. A project that provides annual cash flows of $1,710 for 10 years...
Calculating NPV and IRR. A project that provides annual cash flows of $1,710 for 10 years costs $7,560 today. 1. The NPV is $__________if the required rate of return is 10%. 2. The NPV is $__________if the required rate of return is 24%. 3. At what discount rate would you be indifferent between accepting the project and rejecting it? I would be indifferent at _____% 4. Using a finnancial calculator please show and explain work.
Calculate the NPV, IRR and the Modified IRR using all three methods and the cash flows...
Calculate the NPV, IRR and the Modified IRR using all three methods and the cash flows below. The reinvestment rate/required rate is 11%. Do not use excel. May use HP 10llb+ calculator but show steps. YEAR 0 1 2 3 4 5 ORIGINAL CASH FLOWS -12,000 ; 2,400 ; 6,000 ; -5,000 ; -3,000 ; 24,000
A 10-year project has a cost of $500,000 and has annual cash flows of $100,000 in...
A 10-year project has a cost of $500,000 and has annual cash flows of $100,000 in years 1-10. The company's required rate is 8% c.m. Given this information, calculate the discounted payback of the project?
The NPV of a series of cash flows is the following: At a 5% required rate...
The NPV of a series of cash flows is the following: At a 5% required rate of return, the NPV is $41,728 At a 10% required rate of return, the NPV is $24,708 At a 15% required rate of return, the NPV is $9,940 At a 20% required rate of return, the NPV is -$2,968 (note the negative sign) The IRR for the series of cash flows is in which range: Multiple Choice 0% to 5% Between 5% and 10%...
NPV A project has annual cash flows of $7,500 for the next 10 years and then...
NPV A project has annual cash flows of $7,500 for the next 10 years and then $11,000 each year for the following 10 years. The IRR of this 20-year project is 11.71%. If the firm's WACC is 10%, what is the project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations.
NPV A project has annual cash flows of $6,000 for the next 10 years and then...
NPV A project has annual cash flows of $6,000 for the next 10 years and then $9,500 each year for the following 10 years. The IRR of this 20-year project is 12.14%. If the firm's WACC is 10%, what is the project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations
NPV A project has annual cash flows of $7,500 for the next 10 years and then...
NPV A project has annual cash flows of $7,500 for the next 10 years and then $7,500 each year for the following 10 years. The IRR of this 20-year project is 10.02%. If the firm's WACC is 8%, what is the project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations.
10. Calculate the NPV of a project with initial capital outlay of ₡80,000 that will provide...
10. Calculate the NPV of a project with initial capital outlay of ₡80,000 that will provide ₡25,000 annual cash inflows indefinitely. The required rate of return is 20%.
A 50-year project has a cost of $500,000 and has annual cash flows of $100,000 in...
A 50-year project has a cost of $500,000 and has annual cash flows of $100,000 in years 1-25, and $200,000 in years 26-50. The company's required rate is 8%. Given this information, calculate the payback of the project.
A project that provides annual cash flows of $17,300 for nine years costs $79,000 today. THREE...
A project that provides annual cash flows of $17,300 for nine years costs $79,000 today. THREE QUESTIONS: What is the NPV for the project if the required return is 8 percent What is the NPV for the project if the required return is 20 percent At what discount rate would you be indifferent between accepting the project and rejecting it ?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT