A project Alpha requires an initial capital outlay of $300,000. Its profitability index is 0.18 . What is the NPV of the project?

Yokam Company is considering two alternative projects. Project 1 requires an initial investment of $420,000 and has a present value of all its cash flows of $1,350,000. Project 2 requires an initial investment of $5 million and has a present value of all its cash flows of $6 million. (a) Compute the profitability index for each project.(b) Based on the profitability index, which project should the company select?

There are two types of projects in the market: A (safer) and B (riskier). At time 1, the payoff of A will be either $500 (probability 0.75) or $300 (probability 0.25). The appropriate discount rate for project A is 12%. The minimum price A can accept is $350. The payoff of B will be either $800 (probability 0.2) or $100 (probability 0.8). The appropriate discount rate for project B is 20%. In this simple economy, there are 90% chance that the project will be A. Evaluate the funding situation, i.e., which type of project will be funded and the price, based on the following scenarios: If a bank can tell whether the entrepreneur is endowed with project A or B, but cannot stop A from switching to B after A has receive the fund. What is the maximum face value of loan that the bank can lend to A without incur any monitoring costs, i.e., A will not have incentive to switch to B given this incentive compatible amount of loan and limited liability.

You are considering investing in a project that has an initial cost of $18,000, a WACC of 15%, with the estimated net cashflows for years 1, 2, 3 being equal to $20,000, $ 10,000, $6,000. Would you accept this project? _____________, Why?

Typed and correct answer please. I ll rate

Please answer the following questions using the information below: NPV. Using a 10% required rate of return, calculate the NPV for this project. Should  it be accepted or rejected?  PI. Calculate the Profitability Index (PI) for this project. Should it be accepted or  rejected?   Consider the following cash flows:  Year 0 1 2 3 4 5 6  Cash Flow -$8,000 $3,000 $3,600 $2,700 $2,500 $2,100 $1,600  Payback. The company requires all projects to payback within 3 years. Calculate the payback period. Should it be accepted or rejected?  Discounted Payback. Calculate the discounted payback using a discount rate of 10%.  Should it be accepted or rejected? IRR. Calculate the IRR for this project. The company’s required rate of return is  10%. Should it be accepted or rejected?  NPV. Using a 10% required rate of return, calculate the NPV for this project. Should  it be accepted or rejected?  PI. Calculate the Profitability Index (PI) for this project. Should it be accepted or  rejected?…

You are considering investing in a project that has an initial cost of $10,000, a WACC of 10%, with the estimated net cashflows for years 1, 2, 3 being equal to $4000, $ 9,000, $21,000. What is the project’s NPV?

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consider the following two investments with the cashfow as shown. given the project are mutually exclusive, use Incremental-Investement Analysis to determine which of the two projects you should select. Given that the MARR required by management is 12%.

A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Year 0 1 2 3 NPV Cash Flow -$ 28,600 12,600 What is the NPV for the project if the required return is 11 percent? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV At a required return of 11 percent, should the firm accept this project? O No 15,600 11,600 Yes What is the NPV for the project if the required return is 25 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.) At a required return of 25 percent, should the firm accept this project? O Yes O NO