3.     The required rate of return, assuming no inflation, is 12%, the sales price of a particular product in a potential project is 6% pa and general inflation is forecast to be 8% pa for the foreseeable future.   What rate should be used to discount nominal cashflows? A  18.00% B  18.72% C  20.00% D  20.96%

An investment will provide the following future cash flows. Year 1 = 5,919 Year 2 = 8,327 Year 3 and 4 = 4,718 Year 5 = 3,048 Using a 9.01% discount rate, what is the present value of this investment?

1. What is the project’s net present value? 2. What is the project’s internal rate of return to the nearest whole percent? 3. What is the project’s simple rate of return?

A project has the following cash flows: Cash Year Flow 16,300 1 7,000 8,300 6,800 2 3 a. What is the NPV at a discount rate of zero percent? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. What is the NPV at a discount rate of 12 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the NPV at a discount rate of 19 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. What is the NPV at a discount rate of 28 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) а. NPV b. NPV C. NPV NPV

Vijay

Consider the following cash flows on two mutually exclusive projects:Year Project A Project B0 –$58,000 –$73,0001 38,000 37,0002 33,000 46,0003 28,000 49,000The cash flows of Project A are expressed in real terms, whereas those of Project B are expressed in nominal terms. The appropriate nominal discount rate is 13 percent, and the inflation rate is 5 percent. Calculate the NPV for each project.

An investment will provide the following future cash flows. Year 1 6,768 Year 2 = 3,989 Year 3 and 4 = 6,869 Year 5 = 1,797 Using a 9.96% discount rate, what is the present value of this investment?

Assuming a​ 1-year, money market account investment at 2.282.28 percent​ (APY), a 1.391.39 percent inflation​ rate, a 2525 percent marginal tax​ bracket, and a constant ​$50 comma 00050,000 ​balance, calculate the​ after-tax rate of​ return, the real rate of​ return, and the total monetary return. What are the implications of this result for cash management​ decisions?

Assuming a 1-year, money market account investment at 2.51 percent (APY), a 1.1% inflation rate, a 25 percent marginal tax bracket, and a constant $40,000 balance, calculate the after-tax rate of return, the real return, and the total monetary return. What are the implications of this result for cash management decisions?

Assume a project has cash flows of -$54,300, $18,200, $37,300, and $14,300 for Years 0 to 3, respectively. What is the profitability index given a required return of 12.6 percent? 1.02 .95 .98 1.06 ☐ 1.00