A new computer system will require an initial outlay of $19, 250, but it will increase the firm's cash flows by $4, 100 a year for each of the next 7 years. Calculate the NPV and decide if the system is worth installing if the required rate of return is 10% .
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- Jasmine Manufacturing is considering a project that will require an initial investment of $52,000 and is expected to generate future cash flows of $10,000 for years 1 through 3, $8,000 for years 4 and 5, and $2,000 for years 6 through 10. What is the payback period for this project?A new computer system will require an initial outlay of $19,000, but it will increase the firm’s cash flows by $3,800 a year for each of the next 8 years. Calculate the NPV and decide if the system is worth installing if the required rate of return is 9%. Calculate the NPV and decide if the system is worth installing if the required rate of return is 14%. How high can the discount rate be before you would reject the projectA new computer system will require an initial outlay of $15,000 but it will increase the firm's cash flows by $4,000 a year for each of the next 8 years. Is the system worth installing if the required rate of return is 8 percent? What if it is 13 percent? How high can the discount rate be before you would reject the project? RépondreTransférer
- A new computer system will require an initial outlay of $15,000 but it will increase the firm's cash flows by $4,000 a year for each of the next 8 years. Is the system worth installing if the required rate of return is 8 percent? What if it is 13 percent? How high can the discount rate be before you would reject the project?A new computer system will require an initial outlay of $17,500, but it will increase the firm’s cash flows by $3,500 a year for each of the next 8 years. How high can the discount rate be before you would reject the project?A new computer system will require an initial outlay of $20,000, but it will increase the firm's cash flows by $4,300 a year for each of the next 8 years. Calculate the NPV and decide if the system is worth installing if the required rate of return is 9%. Note: Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places. Calculate the NPV and decide if the system is worth installing if the required rate of return is 14%. Note: Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places. How high can the discount rate be before you would reject the project? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
- A new computer system will require an initial outlay of $23,500, but it will increase the firm’s cash flows by $5,000 a year for each of the next 7 years. a. Calculate the NPV and decide if the system is worth installing if the required rate of return is 10%. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.) b. Calculate the NPV and decide if the system is worth installing if the required rate of return is 15%. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.) c. How high can the discount rate be before you would reject the project? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)Smoot Automotive has implemented a new project that has an initial cost, and then generates inflows of P10,000 a year for the next seven (7) years. The project has a payback period of 4.0 years. 37. What is the project's internal rate of return (IRR)?Big Steve's, makers of swizzle sticks, is considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of $90000 and will generate net cash inflows of $21000 per year for 11 years. What is the internal rate of return? Should it be accepted? Why or why not?
- Big Steve's makers of swizzle sticks, is considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of $110,000 and will generate net cash inflows of $20,000 per year for 9 yrs. What is the project's internal rate of return in %A new computer system will require an initial outlay of $16,250, but it will increase the firm's cash flows by $3,900 a year for each of the next 6 years. a. Calculate the NPV and decide if the system is worth installing if the required rate of return is 8%. Note: Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places. Net present value Worth installing Yes b. Calculate the NPV and decide if the system is worth installing if the required rate of return is 13%. Note: Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.Winston Clinic is evaluating a project that costs $52, 125 and has expected net cash inflows of $12,000 per year for eight years. The first inflow occurs one year after the cost outflow, and the project has a cost of capital of 12 percent. What is the project's payback? What is the project's NPV? Its IRR? Its MIRR? Is the project financially acceptable? Explain your answer.
