Question

A project has an initial outlay of $2,378. The project will generate annual cash flows of...

A project has an initial outlay of $2,378. The project will generate annual cash flows of $485 over the 5-year life of the project and terminal cash flows of $277 in the last year of the project. If the required rate of return on the project is 20%, 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.

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
1. A project has an initial outlay of $1,732. The project will generate annual cash flows...
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...
A project with an initial investment of $458,900 will generate equal annual cash flows over its...
A project with an initial investment of $458,900 will generate equal annual cash flows over its 10-year life. The project has a required return of 8.3 percent. What is the minimum annual cash flow required to accept the project?
A project has an initial requirement of $140,232 for equipment. The equipment will be depreciated to...
A project has an initial requirement of $140,232 for equipment. The equipment will be depreciated to a zero book value over the 4-year life of the project. The investment in net working capital will be $2,789. All of the net working capital will be recouped at the end of the 4 years. The equipment will have an estimated salvage value of $6,601. The annual operating cash flow is $22,835. The cost of capital is 18 percent. What is the project’s...
6c1 A project has an initial outlay of $2,154. It has a single cash flow at...
6c1 A project has an initial outlay of $2,154. It has a single cash flow at the end of year 8 of $4,834. What is the internal rate of return (IRR) for the project? Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box) 6b1 Find the net present value (NPV) for the following series of future cash flows, assuming the company’s cost of capital is 14.71 percent. The initial outlay is...
What is the net present value of a project with the following cash flows if the...
What is the net present value of a project with the following cash flows if the discount rate is 8 percent? Year CFs 0 -1280 1 883 2 507 3 368 Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.
6B4 A project has an initial outlay of $3,480. It has a single payoff at the...
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...
The Aubergine Corporation is considering investing in a project that requires an initial outlay of $400,000...
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:
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.
You are considering a project that will require an initial outlay of $54,200. This project has...
You are considering a project that will require an initial outlay of $54,200. This project has an expected life of 5 years and will generate after-tax flows to the company as a whole of $20,608 at the end of each year over its 5-year life. In addition to the $20, 608 cash flow from operations during the fifth and final year, there will be an additional cash outflow of $23,608 at the end of the fifth and final year associated...