Question

Suppose a company has proposed a new 5-year project. The project has an initial outlay of $171,000 and has expected cash flows of $36,000 in year 1, $50,000 in year 2, $57,000 in year 3, $65,000 in year 4, and $77,000 in year 5. The required rate of return is 13% for projects at this company. What is the discounted payback for this project? (Answer to the nearest tenth of a year, e.g. 3.2)

Answer #1

Answer 4.5 Years

Suppose a company has proposed a new 5-year project. The project
has an initial outlay of $23,000 and has expected cash flows of
$3,000 in year 1, $5,000 in year 2, $6,000 in year 3, $7,000 in
year 4, and $8,000 in year 5. The required rate of return is 15%
for projects at this company. What is the Payback for this project?
(Answer to the nearest tenth of a year, e.g. 3.2)

Suppose a company has proposed a new 5-year project. The project
has an initial outlay of $205,000 and has expected cash flows of
$39,000 in year 1, $44,000 in year 2, $50,000 in year 3, $63,000 in
year 4, and $78,000 in year 5. The required rate of return is 13%
for projects at this company. What is the profitability index for
this project? (Answer to the nearest hundredth, e.g. 1.23)

Suppose a company has proposed a new 5-year project. The project
has an initial outlay of $246,000 and has expected cash flows of
$36,000 in year 1, $44,000 in year 2, $54,000 in year 3, $63,000 in
year 4, and $74,000 in year 5. The required rate of return is 17%
for projects at this company. What is the net present value for
this project? (Answer to the nearest dollar.)

(A)
A company is considering a major expansion of its product line. The
initial outlay would be $10,100,000 and the project would generate
cash flows of $1,290,000 per year for 20 years. The appropriate
discount rate is 10%. (a) calculate the NPV (b) calculate the PI
(c) calculate the IRR (d) should this project be excepted?
(B) The same company is considering a new system for its lot.
The system will provide annual labor savings and reduced waste
totaling $175,000...

A company is considering a 6-year project that requires an
initial outlay of $18,000. The project engineer has estimated that
the operating cash flows will be $4,000 in year 1, $7,000 in year
2, $7,000 in year 3, $7,000 in year 4, $7,000 in year 5, and $7,000
in year 6. At the end of the project, the equipment will be fully
depreciated, classified as 5-year property under MACRS. The project
engineer believes the equipment can be sold for $5,000...

A project has the following total (or net) cash flows.
________________________________________
Year Total (or net)
cash flow
________________________________________
1 $50,000
2 70,000
3 80,000
4 100,000
_______________________________________
The required rate of return on the project is 13 percent. The
initial investment (or initial cost or initial outlay) of the
project is $100,000.
a) Find the (regular) payback period of the project.
b) Compute the discounted payback period of the project.

A project has the following total (or net) cash flows.
________________________________________
Year Total (or net)
cash flow
________________________________________
1 $50,000
2 70,000
3 80,000
4 100,000
_______________________________________
The required rate of return on the project is 13 percent. The
initial investment (or initial cost or initial outlay) of the
project is $100,000.
a) Find the (regular) payback period of the project.
b) Compute the discounted payback period of the project.

Project A requires an initial outlay at t = 0 of $56,841, its
expected cash inflows are $11,000 per year for 9 years, and its
WACC is 13%. What is the project's IRR? Round your answer to two
decimal places.
Project P requires an initial outlay at t = 0 of $45,000, its
expected cash inflows are $15,000 per year for 9 years, and its
WACC is 12%. What is the project's MIRR? Do not round intermediate
calculations. Round your...

11-1 If Company XYZ plans to invest in a
project with initial capital outlay $52,125, annual net cash inflow
$12,000 for 8 years, and discount rate 12%, what is the Company
XYZ’s NPA?
11-2 For the Company XYZ’s same project as in
11-1, what is the IRR for the project?
There are two projects: Project A and Project
B
Project A: CF0 = -6000;
CF1-5 = 2000; I/YR = 14.
Calculate NPV, IRR, MIRR, Payback period, and discounted payback
period...

Project S requires an initial outlay at t = 0 of $10,000, and
its expected cash flows would be $6,500 per year for 5 years.
Mutually exclusive Project L requires an initial outlay at t = 0 of
$50,000, and its expected cash flows would be $13,750 per year for
5 years. If both projects have a WACC of 16%, which project would
you recommend? Select the correct answer. a. Project L, since the
NPVL > NPVS. b. Project S,...

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