Question

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)

Answer #1

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 $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)

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)

A project has an initial outlay of $11351 and the profitability
index of 1.12. The project is expected to generate equal free cash
inflows in each of the next 5 years. What is the project's annual
free cash inflow (to the nearest dollar) if its required rate of
return is 8.08%?

The Aubergine Corporation is considering investing in a project
that requires an initial outlay of $400,000 and has a profitability
index of 1.5. It is expected to generate equal annual cash flows
over the next 12 years. The required return for this project is
20%. The NPV of this project is:

A project has an initial outlay of $10293 and the profitability
index of 1.75. The project is expected to generate equal free cash
inflows in each of the next 8 years. What is the project's annual
free cash inflow (to the nearest dollar) if its required rate of
return is 8.77%?
Blank 1. Calculate the answer by read surrounding text.

6B4
A project has an initial outlay of $3,480. It has a single
payoff at the end of year 3 of $9,922. What is the net present
value (NPV) of the project if the company’s cost of capital is
11.97 percent?
6C4
Find the modified internal rate of return (MIRR) for the
following series of future cash flows if the company is able to
reinvest cash flows received from the project at an annual rate of
11.59 percent.The initial outlay...

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...

1. A project has an initial outlay of $1,732. The project will
generate annual cash flows of $783 over the 4-year life of the
project and terminal cash flows of $258 in the last year of the
project. If the required rate of return on the project is 4%, what
is the net present value (NPV) of the project? Note: Enter your
answer rounded off to two decimal points. Do not enter $ or comma
in the answer box.
2.A...

The company has a project with a 5-year life, an initial
investment of $220,000, and is expected to yield annual cash flows
of $55,500. What is the present value index of the project if the
required rate of return is set at 8%?
present value index= ___?________________=?
?

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