Question

Compute the NPV for Project M if the appropriate cost of capital is 8 percent. (Negative...

Compute the NPV for Project M if the appropriate cost of capital is 8 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.) Project M Time: 0 1 2 3 4 5 Cash flow: –$3,100 $710 $840 $880 $960 $460

Should the project be rejected or accepted?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Net Present Value [NPV] = Present Value of cash Inflows – Initial Investment

= $3,094.84 – 3,100

= - $5.16 [ Negative NPV ]

Present Value of cash Inflows

Year

Cash Flows

Present Value factor at 8%

Present Value of cash flows

1

0.92593

710

657.41

2

0.85734

840

720.17

3

0.79383

880

698.57

4

0.73503

960

705.63

5

0.68058

460

313.07

TOTAL

3094.84

Dicision

“ Since the NPV is Negative, The Project “ SHOULD BE REJECTED ”

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
Compute the NPV for Project M if the appropriate cost of capital is 8 percent. (Negative...
Compute the NPV for Project M if the appropriate cost of capital is 8 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.) Project M Time: 0 1 2 3 4 5 Cash flow –$2,200 $590 $720 $760 $840 $340 NPV $ Should the project be accepted or rejected?
Compute the NPV for Project M if the appropriate cost of capital is 9 percent. (Negative...
Compute the NPV for Project M if the appropriate cost of capital is 9 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.) Project M Time: 0 1 2 3 4 5 Cash flow: –$1,200 $390 $520 $560 $640 $140 Problem 13-3 NPV with Non-normal Cash Flows (LG13-3) Compute the NPV statistic for Project U if the appropriate cost of capital is 10 percent. (Negative...
Compute the NPV statistic for Project Y if the appropriate cost of capital is 11 percent....
Compute the NPV statistic for Project Y if the appropriate cost of capital is 11 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal place.) Project Y Time: 0 1 2 3 4 Cash flow: –$9,300 $3,610 $4,440 $1,780 $560 NPV $ _________ Should the project be accepted or rejected? _____________
Compute the NPV statistic for Project U if the appropriate cost of capital is 10 percent....
Compute the NPV statistic for Project U if the appropriate cost of capital is 10 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.) Project U Time: 0 1 2 3 4 5 Cash flow: –$1,600 $590 $2,080 –$640 $540 –$220 NPV= Should the project be accepted or rejected?
Compute the NPV statistic for Project U if the appropriate cost of capital is 11 percent....
Compute the NPV statistic for Project U if the appropriate cost of capital is 11 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.) Project U Time: 0 1 2 3 4 5 Cash flow: –$2,500 $750 $2,480 –$720 $700 –$300
Compute the NPV statistic for Project U if the appropriate cost of capital is 9 percent....
Compute the NPV statistic for Project U if the appropriate cost of capital is 9 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.) Project U Time: 0 1 2 3 4 5 Cash flow: –$2,300 $670 $2,280 –$680 $620 –$260
Compute the IRR static for Project E. The appropriate cost of capital is 8 percent. (Do...
Compute the IRR static for Project E. The appropriate cost of capital is 8 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.)         Project E   Time: 0 1 2 3 4 5   Cash flow –$2,700 $830 $840 $760 $540 $340 IRR % ____________ Should the project be accepted or rejected? _________
Compute the MIRR statistic for Project J if the appropriate cost of capital is 8 percent....
Compute the MIRR statistic for Project J if the appropriate cost of capital is 8 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Project J Time: 0 1 2 3 4 5 Cash flow: −$2,700 $860 $2,330 −$690 $810 −$270 Should the project be accepted or rejected? accepted rejected
Compute the IRR static for Project E. The appropriate cost of capital is 9 percent. (Do...
Compute the IRR static for Project E. The appropriate cost of capital is 9 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Time: 0 1 2 3 4 5 Cash Flow: -$1,800 $670 $720 $680 $460 $260 IRR _____________ % Should the project be accepted or rejected?
Compute the PI statistic for Project Q if the appropriate cost of capital is 13 percent....
Compute the PI statistic for Project Q if the appropriate cost of capital is 13 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Project Q Time: 0 1 2 3 4 Cash flow: −$11,800 $3,750 $4,580 $1,920 $2,550 Should the project be accepted or rejected? rejected accepted
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT