Question

Project X has an expected cash outflow at time zero of 1,516 and has the following...

  1. Project X has an expected cash outflow at time zero of 1,516 and has the following projected cash inflows over the next six years:

Year

Amount

1

148

2

223

3

364

4

401

5

564

6

669

  1. The company's weighted average cost of capital is 12.8%. What is the net present value of this project? (Show your answer to the nearest dollar, and if negative, include a minus sign, e.g. -123 or 123)

Homework Answers

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
We are evaluating a project that costs $717,000, has a twelve-year life, and has no salvage...
We are evaluating a project that costs $717,000, has a twelve-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 154,000 units per year. Price per unit is $39, variable cost per unit is $25, and fixed costs are $722,019 per year. The tax rate is 38 percent, and we require a 18 percent return on this project. Requirement 1: Calculate the accounting break-even point.(Round your...
1. Project A Year Cash Flow 0 -$123 1 $59 2 $79 3 $143 WACC =...
1. Project A Year Cash Flow 0 -$123 1 $59 2 $79 3 $143 WACC = 6.57% Given the cash-flows in the table, what is the NPV of project A?   State your answer to the nearest penny. Give just the number with no dollar sign (e.g., 3.26) If the NPV is negative include the - sign (e.g. -4.28). 2. Project A Year Cash Flow 0 -$233 1 $56 2 $78 3 $104 WACC = 6.97% Given the cash-flows in the...
If a project being considered has normal cash flows, with one outflow followed by a series...
If a project being considered has normal cash flows, with one outflow followed by a series of inflows, which of the following statements is CORRECT? A If a project's NPV is greater than zero, then its IRR must be less than the WACC. B If a project's NPV is greater than zero, then its IRR must be less than zero. C The higher the WACC used to calculate the NPV, the lower the calculated NPV will be. D A project's...
If a project has a net present value equal to zero, then: Group of answer choices...
If a project has a net present value equal to zero, then: Group of answer choices the project earns a return exactly equal to the discount rate. the total of the cash inflows must equal the initial cost of the project. a decrease in the project's initial cost will cause the project to have a negative NPV. any delay in receiving the projected cash inflows will cause the project to have a positive NPV. the project's PI must be also...
What is the net present value of a project that has an initial cash outflow of...
What is the net present value of a project that has an initial cash outflow of $-11,400, at time 0, and the following cash flows for years 1-4? The required return is 10.0%. DO NOT USE DOLLAR SIGNS OR COMMAS IN YOUR ANSWER. ENTER YOUR ANSWER TO THE NEAREST DOLLAR (e.g. 1250). Year Cash Flows 1 $4,500 2 $4,350 3 $5,400 4 $7,250 Question 1 options: Answer Question 2 (1 point) A project has cash flows of -$163,500, $60,800, $62,300...
Project A would require an initial outlay of $60,000 and is expected to generate positive cash...
Project A would require an initial outlay of $60,000 and is expected to generate positive cash flows in years one through six of $18,838; $12,133; $17,123; $13,007; $17,559; and $17,907. Using a discount rate of 13.2%, what is the NPV of this project? If the answer is negative, include the negative sign, and show the answer to the nearest dollar.
Project A would require an initial outlay of $56,000 and is expected to generate positive cash...
Project A would require an initial outlay of $56,000 and is expected to generate positive cash flows in years one through six of $16,542; $14,677; $15,035; $19,167; $19,796; and $12,120. Using a discount rate of 17.1%, what is the NPV of this project? If the answer is negative, include the negative sign, and show the answer to the nearest dollar.
A project has the following cash flows: Year Cash Flow 0 $ 72,500 1 –51,500 2...
A project has the following cash flows: Year Cash Flow 0 $ 72,500 1 –51,500 2 –28,000 What is the IRR for this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Internal rate of return             % What is the NPV of this project if the required return is 6 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your...
If you assume that a project being considered has normal cash flows, with one outflow followed...
If you assume that a project being considered has normal cash flows, with one outflow followed by a series of inflows, which statement would be correct? Question 11 options: a) The lower the cost of capital used to calculate a project's NPV, the lower the calculated NPV will be. b) If a project's NPV is less than zero, then its IRR must be less than the cost of capital. c) A project’s NPV is found by compounding the cash inflows...
A project has the following cash flows: Year Cash Flow 0 –$ 16,600 1 7,300 2...
A project has the following cash flows: Year Cash Flow 0 –$ 16,600 1 7,300 2 8,600 3 7,100 What is the NPV at a discount rate of zero percent? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) What is the NPV at a discount rate of 12 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) What is the NPV at a discount rate...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT