Question

A project has the following cash flows. What is the payback period, NPV, PI, IRR, MIRR,...

A project has the following cash flows. What is the payback period, NPV, PI, IRR, MIRR, and EAA? Assume an interest rate of 5%.

Year CF ($)

0) -5,000

1). 2,700

2). 3,300

3) 1,400

4). 330

5) 340

Also upload your excel files showing your work.

Homework Answers

Answer #1

The parameters can be found as shown below;

Year 0 1 2 3 4 5
Cashflows CF -5000 2700 3300 1400 330 340
Discounted cashflow= CF/(1+5%)^n -5,000.00 2,571.43 2,993.20 1,209.37 271.49 266.40
Payback period (total years for initial cashflow to return) 1.696969697
NPV @ 5% =sum of discounted cashflows) 2,311.89
PI= PV of cashoutflow/PV of inflow 1.46237784
IRR =irr(all cashflows) 28%
MIRR =mirr(cashflows,financing rate, reinvestment rate) 13%
EAA= r*NPV/(1-(1+r)^-n 533.9881416
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
(Payback ​period, NPV,​ PI, and IRR calculations​) You are considering a project with an initial cash...
(Payback ​period, NPV,​ PI, and IRR calculations​) You are considering a project with an initial cash outlay of ​$75,000 and expected free cash flows of ​$26,000 at the end of each year for 5 years. The required rate of return for this project is 7 percent. a. What is the​ project's payback​ period? b. What is the​ project's NPV​? c. What is the​ project's PI​? d. What is the​ project's IRR​?
​(Payback ​period, NPV,​ PI, and IRR calculations​) You are considering a project with an initial cash...
​(Payback ​period, NPV,​ PI, and IRR calculations​) You are considering a project with an initial cash outlay of ​$80,000 and expected free cash flows of ​$26,000 at the end of each year for 6 years. The required rate of return for this project is 7 percent. a. What is the​ project's payback​ period? b. What is the​ project's NPV​? c. What is the​ project's PI​? d. What is the​ project's IRR​? a. The​ project's payback period is nothing years.  ​(Round...
Compute the Payback period, NPV, IRR, and PI and give accept/reject decision for the following project....
Compute the Payback period, NPV, IRR, and PI and give accept/reject decision for the following project. The cost of capital is 10 percent. Assume the policy payback period is 3 years. Year Cash Inflow (Outflow) 0 (400) 1 100 2 200 3 200 4 300
Please show your steps! Question 1 a) What is the NPV, IRR, and payback period of...
Please show your steps! Question 1 a) What is the NPV, IRR, and payback period of a project with the following cash flows if WACC is 20%? Time: 0 1 2 3 4 5 -$350,000 $100,000 $100,000 $100,000 $50,000 $50,000 NPV= IRR= Payback period= b) Should you accept or reject the project according to NPV and IRR? *can you please include greater than an less than signs.* Thank you.
Considering IRR and MIRR, which of the following statements is/are correct? MIRR considers all the cash...
Considering IRR and MIRR, which of the following statements is/are correct? MIRR considers all the cash flows and time value of money. If Project A’s IRR exceeds Project B’ IRR, then A must have the higher NPV. Positive MIRR always leads to positive NPV. Conventional (also known as Normal) cash flows will result in multiple IRRs. All of the above, except d, are correct statements. (I know this answer is wrong, I got marked off).
A project has the following annual net cash flows: Year 0: -19,000 Year 1: 8,000 Year...
A project has the following annual net cash flows: Year 0: -19,000 Year 1: 8,000 Year 2: 11,000 Year 3: 6,000 Year 4: 4,500 1.The firm's WACC is 14%. Calculate IRR. 2. Calculate MIRR for the project in the previous problem. 3. Calculate the project's NPV. (Round to the nearest cent) 4. Calculate the project's EAA. 5. Calculate the project's payback period. 6. Calculate the project's discounted payback period. (Round to two decimal places)
Telesis Corp is considering a project that has the following cash flows: Year Cash Flow 0...
Telesis Corp is considering a project that has the following cash flows: Year Cash Flow 0 -$1,000 1 400 2 300 3 500 4 400 The company’s weighted average cost of capital (WACC) is 10%. What are the project’s payback period (Payback), internal rate of return (IRR), net present value (NPV), and profitability index (PI)? A. Payback = 3.5, IRR = 10.22%, NPV = $1260, PI=1.26 B. Payback = 2.6, IRR = 21.22%, NPV = $349, PI=1.35 C. Payback =...
 LO 3 LO 4 7. Calculating NPV and IRR. A project that provides annual cash...
 LO 3 LO 4 7. Calculating NPV and IRR. A project that provides annual cash flows of $2,620 for eight years costs $9,430 today. Is this a good project if the required return is 8 percent? What if it's 24 percent? At what discount rate would you be indifferent between accepting the project and rejecting it?  LO 4 9. Calculating NPV. For the cash flows in the previous problem, what is the NPV at a discount rate of...
Calculate NPV, payback period and IRR for the following project given a required return of 10%:...
Calculate NPV, payback period and IRR for the following project given a required return of 10%: Project z Time 0 1 2 3 4 5 Cash Flow -11,000 6,230 4,120 1,530 3,500 990
to evaluate a project which would be the most accurate measure NPV, IRR, or payback period...
to evaluate a project which would be the most accurate measure NPV, IRR, or payback period also which is the easiest to calculate without a computer