Compute the NPV statistic for Project Y given the following cash flows and if the appropriate cost of capital is 12 percent. Project Y Time 3 5 10,000 $. Cash Flow $3,000 $4,000 $1,000 $2,000 $500 Multiple Cholce -$1,539.14 $18,133,88 -$1,866.12 -$1,366.99

Compute the NPV statistic for Project Y given the following cash flows and if the appropriate cost of capital is 12 percent. Project Y Time 3 5 10,000 $. Cash Flow $3,000 $4,000 $1,000 $2,000 $500 Multiple Cholce -$1,539.14 $18,133,88 -$1,866.12 -$1,366.99

Name: What do you think would be the correct answer? Compute the NPV statist
Uploaded: 2024-03-20T06:50:59.000Z
Channel: Bartleby
Description: What do you think would be the correct answer? Compute the NPV statistic for Project Y given the following cash flows and if the appropriate cost of capital is 12 percent.Project YTime1.2345Cash Flow10,000$3,000$4,000$1,e00$2,000$500Multiple Choice-$

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter12: Capital Budgeting: Decision Criteria

Section: Chapter Questions

Problem 10P: Project S has a cost of $10,000 and is expected to produce benefits (cash flows) of $3,000 per year...

See similar textbooks

Similar questions

Start with the partial model in the file Ch10 P23 Build a Model.xlsx on the textbooks Web site. Gardial Fisheries is considering two mutually exclusive investments. The projects expected net cash flows are as follows: a. If each projects cost of capital is 12%, which project should be selected? If the cost of capital is 18%, what project is the proper choice? b. Construct NPV profiles for Projects A and B. c. What is each projects IRR? d. What is the crossover rate, and what is its significance? e. What is each projects MIRR at a cost of capital of 12%? At r = 18%? (Hint: Consider Period 7 as the end of Project Bs life.) f. What is the regular payback period for these two projects? g. At a cost of capital of 12%, what is the discounted payback period for these two projects? h. What is the profitability index for each project if the cost of capital is 12%?
Project S has a cost of $10,000 and is expected to produce benefits (cash flows) of $3,000 per year for 5 years. Project L costs $25,000 and is expected to produce cash flows of $7,400 per year for 5 years. Calculate the two projects’ NPVs, IRRs, MIRRs, and PIs, assuming a cost of capital of 12%. Which project would be selected, assuming they are mutually exclusive, using each ranking method? Which should actually be selected?
Compute the NPV for Project X with the cash flows shown as follows if the appropriate cost of capital is 9 percent. Time 0 1 2 3 4 5 Cash Flow −$ 5,000 $ 1,000 $ 2,000 $ 2,000 $ 500 $ 500 Multiple Choice −$2,013.18 −$175.66 $486.29 $9,824.34
Compute the NPV for Project X with the cash flows shown below if the appropriate cost of capital is 10 percent. Time: 0 1 2 3 4 5 Cash flow: -125 -125 0 200 175 150 Multiple Choice $162.01 $124.29 $112.99 $362.93
Compute the NPV statistic for Project X given the following cash flows if the appropriate cost of capital is 12 percent. Project X Time 0 1 2 3 4 Cash Flow –$ 15,000 $ 6,000 $ 10,000 $ 12,000 –$ 1,000
Consider the following two mutually exclusive projects:Year Cash Flow (X) Cash Flow (Y)0 -$365,000 -$38,0001 25,000 16,0002 65,000 12,0003 65,000 17,0004 425,000 15,000Whichever project you choose, if any, you require a 13 percent return on your investment. i. Which investment will you choose if you use the payback decision criteria? Justify your answer.ii. Which investment will you choose if you use the NPV decision criteria? Justify your answer.iii. Which project will you choose ultimately based on your answers above?
Compute the NPV statistic for Project X given the following cash flows if the appropriate cost of capital is 12 percent. Project X Time 2 4 Cash Flow 15,000 $6,000 $10,000 $12,000 1,000
Consider the following two mutually exclusive investment projects:Project Cash Flowsn A B 0 -$4,000 -$8,5001 $400 $11,5002 $7,000 $400Assume that the MARR = 15%.(a) Using the NPW criterion, which project would you select?(b) On the same chart, sketch the PW(i) function for each alternative fori = 0% and 50%. For what range of i would you prefer Project B?
Compute the NPV for Project X with the cash flows shown as follows if the appropriate cost of capital is 9 percent. Time: 1 2 3. 4 Cash flow: -1,000 -75 100 100 2,000 Multiple Choice $486.29 -$639.96 $392.44 $360.04 MacBook Air
You are analyzing two proposed capital investments with the following cash flows: Year Project X Project Y - $20,000 - $20,000 12,630 7,470 5,660 7,470 3 6,360 7,470 4 1,920 7,470 1, 2.
Compute the NPV statistic for Project U given the following cash flows if the appropriate cost of capital is 9 percent. Project U Time 0 1 2 3 4 5 Cash Flow –$ 1,000 $ 350 $ 1,480 –$ 520 $ 400 –$ 100
Consider the following two mutually exclusive projects: Year Cash Flow(A) -$ 63,000 39,000 33,000 22,500 14,600 Cash Flow(B) -$ 63,000 25,700 29,700 35,000 24,700 4 1-What is the IRR for each project? Project A Project B % % 2.IF you apply the IRR decision rule, which project should ti 3.Assume the required return is 14 percent. What is the NP Project A Project B 0123