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 $169,000 and has expected cash flows of
$38,000 in year 1, $45,000 in year 2, $60,000 in year 3, $69,000 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)

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 $231,000 and has expected cash flows of
$32,000 in year 1, $50,000 in year 2, $52,000 in year 3, $65,000 in
year 4, and $72,000 in year 5. The required rate of return is 11%
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 $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 $178,000 and has expected cash flows of
$32,000 in year 1, $40,000 in year 2, $57,000 in year 3, $68,000 in
year 4, and $74,000 in year 5. The required rate of return is 14%
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.)

Suppose a company has proposed a new 5-year project. The project
has an initial outlay of $212,000 and has expected cash flows of
$40,000 in year 1, $41,000 in year 2, $53,000 in year 3, $61,000 in
year 4, and $74,000 in year 5. The required rate of return is 16%
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 4-year project. The project
has an initial outlay of $21,000 and has expected cash flows of
$6,000 in year 1, $9,000 in year 2, $11,000 in year 3, and $13,000
in year 4. The required rate of return is 15% for projects at this
company. What is the profitability index for this project? (Answer
to the nearest hundredth, e.g. 1.23)

If a project has an initial outlay of $41,000 and cash flows of
$14,000 per year for the next 5 years, what is the IRR of this
project? (Answer to the nearest tenth of a percent, e.g. 12.3).

(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...

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