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?

Homework Answers

Answer #1

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

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
Masulis Inc. is considering a project that has the following cash flow and WACC data. What...
Masulis Inc. is considering a project that has the following cash flow and WACC data. What is the project's discounted payback? WACC: 10.00% Year 0 1 2 3 4 Cash flows -$1,300 $525 $485 $445 $405 Group of answer choices 3.32 years 2.62 years 2.75 years 3.42 years
1. Z Enterprises is considering a project that has the following cash flow data. what is...
1. Z Enterprises is considering a project that has the following cash flow data. what is the payback period? year 0: -1000 year 1: 500. yr 2: 500 yr 3: 500 2. Z Enterprises is considering a project that has the following cash flow data. what is the payback period? what is the npv? (cost of capital is 11%) year 0: -1000 yr 1: 500 yr 2: 300 yr 3: 800
Swan Enterprises is considering a project that has the following cash flow and WACC data. What...
Swan Enterprises is considering a project that has the following cash flow and WACC data. What is the project's MIRR? WACC=10.50% Year 0 1 2 3 4 Cash Flows -$850 $300 $320 $340 $360
Blanchford Enterprises is considering a project that has the following cash flow data. What is the...
Blanchford Enterprises is considering a project that has the following cash flow data. What is the project’s profitability Index? k=10% Year. Cash flows 0. -$1,000 1. $450 2. $450 3. $450
Anderson Systems is considering a project that has the following cash flow and WACC data. What...
Anderson Systems is considering a project that has the following cash flow and WACC data. What is the project’s MIRR? WACC: 9.00% YEAR 0 1 2 3 4 CASH FLOWS -1000 -1000 1000 1200 1500
Rocket Inc. is considering a project that has the following cash flow and WACC data. WACC:...
Rocket Inc. is considering a project that has the following cash flow and WACC data. WACC: 10.00% Year 0 1 2 3 4 Cash flows -$1,000 $510 $440 $425 $405 What is the project's payback? What is the project's discounted payback? Is the project worthwhile to undertake? (Would you undertake the project?) Why?
Anderson Systems is considering a project that has the following cash flow and WACC data. WACC...
Anderson Systems is considering a project that has the following cash flow and WACC data. WACC = 11.50% Year 0    1 2 3 4 Cash flows ($1,000) $350 $350 $350 $350 a) What is the project's NPV? b) What is the project’s IRR? c) What is the project’s payback period?
Global Group is considering a project that has the following cash flow and WACC data. What...
Global Group is considering a project that has the following cash flow and WACC data. What is the project's IRR? State in percentage terms without the percent sign symbol and round to the second decimal place. (Thus, 12.98756% would be written as 12.99 to be correct) WACC:           12.34% After Tax Salvage Value at end of year 4 = $200                                           Year                            0                      1                      2                      3                      4   Cash flows                 -$1,600                   $450                    $450                    $450                     $450
Global Group is considering a project that has the following cash flow and WACC data. What...
Global Group is considering a project that has the following cash flow and WACC data. What is the project's IRR? State in percentage terms without the percent sign symbol and round to the second decimal place. (Thus, 12.98756% would be written as 12.99 to be correct) WACC:           12.34% After Tax Salvage Value at end of year 4 = $200                                           Year                            0                      1                      2                      3                      4 Cash flows                 -$1,600                   $450                    $450                    $450                     $450
Boca Center Inc. is considering a project that has the following cash flow and WACC data....
Boca Center Inc. is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's expected NPV can be negative, in which case it will be rejected. WACC: 14.00% Year 0 1 2 3 4 Cash flows -$1,200 $400 $425 $450 $475 Group of answer choices 62.88 41.25 45.84 50.93 56.59 103.95 110.02 36.65 Flag this Question Question 123.13 pts Maxwell Feed & Seed is considering a project that has...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT