Question

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】

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.**

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 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 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 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 $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 $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 $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 ₡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 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 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 ?

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