Braun Industries is considering an investment project which has
the following cash flows: Year Cash Flow...
Braun Industries is considering an investment project which has
the following cash flows: Year Cash Flow 0 -$1,000 1 400 2 300 3
500 4 400 The company's WACC is 10 percent. What is the project's
payback, internal rate of return, and net present value? Select
one: a. Payback = 2.6, IRR = 21.22%, NPV = $300. b. Payback = 2.6,
IRR = 21.22%, NPV = $260. c. Payback = 2.4, IRR = 10.00%, NPV =
$600. d. Payback =...
Gardial Fisheries is considering two mutually exclusive
investments. The projects' expected net cash flows are as...
Gardial Fisheries is considering two mutually exclusive
investments. The projects' expected net cash flows are as
follows:
Expected Net Cash Flows
Time Project A Project B
0 ($375) ($575)
1 ($300) $190
2 ($200) $190
3 ($100) $190
4 $600 $190
5 $600 $190
6 $926 $190
7 ($200) $0
a. If each project's cost of capital is 12%, which project
should be selected? If the cost of capital is 18%, what project is
the proper choice?
@ 12% cost...
1.
What is the payback period for the following set of cash
flows?
Year
Cash Flow...
1.
What is the payback period for the following set of cash
flows?
Year
Cash Flow
0
−$ 8,000
1
2,800
2
1,000
3
2,900
4
2,100
Multiple Choice
3.57 years
3.80 years
3.64 years
3.92 years
3.62 years
2.
An investment project provides cash inflows of $650 per year
for 8 years.
a. What is the project payback period if the
initial cost is $3,250?
b. What is the project payback period if...
For the following set of cash flows, year,0,1,2,3,cash
flow,-8,000,6,700,6,800,6,100(a) what is the NPV at a discount...
For the following set of cash flows, year,0,1,2,3,cash
flow,-8,000,6,700,6,800,6,100(a) what is the NPV at a discount rate
of 0 percent?(b) what is the NPV at a discount rate of 12 percent?
(C) what is the NPV at a discount rate of 18 percent? (D) what is
the NPV at a discount rate of 23 percent?
. Calculate the IRR and NPV for the following cash flows. Assume
a 15% discount rate...
. Calculate the IRR and NPV for the following cash flows. Assume
a 15% discount rate
Year
Project 1
Cash flow
Project 2
Cash flow
0
-$20,000
-$20,000
1
1,000
12,000
2
3,000
15,000
3
4,000
3,000
4
12,000
4,000
5
15,000
1,000
9. If your tenant pays you rent of $24,000 a year for 10 years,
what is the present value of the series of payments discounted at
10% annually?
10. You are going to invest $300,000 in a...