Question

A project requires an initial investment of $2,200 and grants cash flows of $1,300 at the...

A project requires an initial investment of $2,200 and grants cash flows of $1,300 at the end of year 1, $ 950 at the end of year 2, $ 1,900 at the end of year 3 and $ 850 at the end of year 4. At a discount rate of 32%, calculate NPV and IRR. What decision should be made by the company?

please provide me the answer as soon as possible

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
An investment project has the following cash flows: initial cost = $1,000,000; cash inflows = $200,000...
An investment project has the following cash flows: initial cost = $1,000,000; cash inflows = $200,000 per year for eight years. If the required rate of return is 12%: i) Compute the project’s NPV. What decision should be made using NPV? ii) Compute the project’s IRR. How would the IRR decision rule be used for this project, and what decision would be reached?
A capital investment project requires an initial investment of $100 and generates positive cash flows, $50...
A capital investment project requires an initial investment of $100 and generates positive cash flows, $50 and $100, at the end of the first and second years, respectively. (There is no cash flow after the second year) The firm uses a hurdle rate of 15% for projects of similar risk. Determine whether you should accept or reject the project based on NPV. Determine whether you should accept or reject the project based on IRR. Determine whether you should accept or...
An investment project has the following cash flows: Initial investment of $1,000,000 and cash flows starting...
An investment project has the following cash flows: Initial investment of $1,000,000 and cash flows starting in the first year through year 4 of $300,000 each. If the required rate of return is 12% What is the present value for each cash flow? What is the NPV and what decision should be made using the NPV?
Your company received an investment proposal which requires an initial investment of $5439783 now. The project...
Your company received an investment proposal which requires an initial investment of $5439783 now. The project will last for 5 years. You also have the following information about this project; Years 1 2 3 4 5 CF Last 6 digits of your student ID 120,000 130,000 140,000 543978 Discount Rate 5% 7% 8% 10% 10% If you receive the above cash flows at the end of each year, calculate the NPV using both spreadsheet method and excel NPV function, and...
A company is considering a project with the following cash flows: Initial Investment = -$200,000 Cash...
A company is considering a project with the following cash flows: Initial Investment = -$200,000 Cash Flows: Year 1 = $140,000                      Year 4 = $80,000                      Year 5 = $120,000 If the appropriate discount rate is 12%, what is the NPV of this project?
A company is considering a project with the following cash flows: Initial Investment = -$200,000 Cash...
A company is considering a project with the following cash flows: Initial Investment = -$200,000 Cash Flows: Year 1 = $140,000 Year 4 = $80,000 Year 5 = $120,000 If the appropriate discount rate is 12%, what is the NPV of this project?
A project requires an initial investment of $100,000 and is expected to produce a cash inflow...
A project requires an initial investment of $100,000 and is expected to produce a cash inflow before tax of $26,900 per year for five years. Company A has substantial accumulated tax losses and is unlikely to pay taxes in the foreseeable future. Company B pays corporate taxes at a rate of 21% and can claim 100% bonus depreciation on the investment. Suppose the opportunity cost of capital is 10%. Ignore inflation. a. Calculate project NPV for each company. b. What...
A project requires an initial investment of $100,000 and is expected to produce a cash inflow...
A project requires an initial investment of $100,000 and is expected to produce a cash inflow before tax of $27,200 per year for five years. Company A has substantial accumulated tax losses and is unlikely to pay taxes in the foreseeable future. Company B pays corporate taxes at a rate of 21% and can claim 100% bonus depreciation on the investment. Suppose the opportunity cost of capital is 10%. Ignore inflation. a. Calculate project NPV for each company. (Do not...
A project requires an initial investment of $1.2 million. It expects to generate a perpetual cash...
A project requires an initial investment of $1.2 million. It expects to generate a perpetual cash flow. The first year cash flow is expected at $100,000. The cash flows are then expected to grow at 1.25% forever. The appropriate cost of capital for this project is 11%. What is the project's IRR and should it be accepted based on the IRR rule? Group of answer choices IRR is 11.6%; project should be accepted IRR is 11.6%; project should not be...
A project requires an initial investment of $100,000 and is expected to produce a cash inflow...
A project requires an initial investment of $100,000 and is expected to produce a cash inflow before tax of $27,500 per year for five years. Company A has substantial accumulated tax losses and is unlikely to pay taxes in the foreseeable future. Company B pays corporate taxes at a rate of 21% and can claim 100% bonus depreciation on the investment. Suppose the opportunity cost of capital is 10%. Ignore inflation. 1. Calculate project NPV for each company. (Do not...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT