Question

# 1. tapley dental is considering a project that has the following cash/WACC data. what is the...

1. tapley dental is considering a project that has the following cash/WACC data. what is the npv?

wacc-8 percent
year 0: -1000
yr 1- 300
yr 2-300 yr 3-300 yr 4-300 yr 5-300

2. blanchford enterprises is considering a project that has the following cash flow data. what is the project’s irr?

year 0: -1099.67 year 1: 450 year 2: 450 year 3: 450

3. Reynolds bikes is considering a project with the following cash flow and wacc data.

wacc-10 percent
year 0: -100
year 1: 525
year 2: 485
year 3: 445
year 4:405

what is reynolds bikes’ discounted payback period?

Q1) Using financial calculator to calculate the Npv

Inputs: C0= -1,000

C1= 300 Frequency= 4

C2= 500. Frequency= 1

I= 8%

Npv= compute

We get, Npv of the project as \$333.93

Q2) Usinf financial calculator to calculate the IRR

Inputs: C0= -1,099.67

C1= 450. Frequency= 3

IRR= compute

We get, IRR of the project as 11%

Q3)

 Years Cash flow PV factor PV of Cash flow ( Pv factor × Cash flow) Cumulative discounted cashflow 0 -100 -100 -100 1 525 0.909 477.225 377.225 2 485 0.826 400.61 777.835 3 445 0.751 344.20 1,122.035 4 405 0.683 276.62 1,398.66

Discounted payback period= Full year before recovery + Cumulative Cash flow in the year before recovery / Discounted cash flow of the year after recovery

= 0 + 100 / 477.225

= 0 + 0.2095

= 0.21 years

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