FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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A project has an initial cost of $100,000, and
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- Cash flows from a new project are expected to be $5,000, $8,000, $14,000, $22,000, $24,000, and $32,000 over the next 6 years, respectively. Assuming qn initial cost of $60,000, and a discount rate of 16%, what is the project's IRR?arrow_forwardA project generates annual cash flows of $3,000,000 each year for three years and costs $6,000,000. There will be a $1,000,000 cash outflow in year 4. What is the Modified IRR for the project if the discount rate is 12.00%?arrow_forwardThe initial cost of a project is $18 million. If a project returns $3 million at year 1 and that cash flow increases by $2 million each year afterwards, what is the payback period? The initial cost of a project is $18 million. If a project returns $3 million at year 1 and that cash flow increases by $2 million each year afterwards, what is the payback period? 5.77 years 4.25 years 3.33 years 2.66 yearsarrow_forward
- An investment project has annual cash inflows of $6,000, $7,100, $7,900 for the next four years, respectively, and $9,200, and a discount rate of 16 percent. What is the discounted payback period for these cash flows if the initial cost is $9,500? (Do not round your intermediate calculations.) Multiple Choice 3.64 years O 1.82 years O 2.57 years O 0.82 years O 1.32 yearsarrow_forwardAn investment project costs $21,500 and has annual cash flows of $6,500 for 6 years. If the discount rate is 15 percent, what is the discounted payback period? Select one: a. 5.71 b. 3.91 c. 4.21 d. 4.91 e. 5.91arrow_forwardAn investment project provides cash inflows of $ 2,403 per year for 10 years. What is the project payback period if the initial cost is $ 9,090 ?arrow_forward
- An investment project costs $14,100 and has annual cash flows of $3,200 for six years. a. What is the discounted payback period if the discount rate is zero percent? Discounted payback period b. What is the discounted payback period if the discount rate is 3 percent? Discounted payback periódarrow_forwardA project has an initial cost of $40,000, expected net cash inflows of $9,000 per year for 7 years, and a cost of capital of 8%. What is the project's IRR? Round your answer to two decimal places.arrow_forwardA project is expected to produce cash inflows of $5,000 for seven years. What is the maximum amount that can be spent on costs to initiate this project and still consider the project as acceptable, given an 11% discount rate? Select one: Oa. $15,884.15 Ob. $23,340.13 Oc. $25,900.63 O d. $23,560.98 Oe. $26,984.02arrow_forward
- A project has an initial cost of $61,450, expected net cash inflows of $11,000 per year for 10 years, and a cost of capital of 8%. What is the project's MIRR? Round your answer to two decimal places.arrow_forwardAn investment project provides cash inflows of $850 per year for five ears. What is the project payback period if the initial cost is $5,600?arrow_forwardAn investment project has annual cash inflows of $4,800, $3,500, $4,700, and $3,900, for the next four years, respectively. The discount rate is 15 percent. a. What is the discounted payback period for these cash flows if the initial cost is $5,300? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the discounted payback period for these cash flows if the initial cost is $7,400? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the discounted payback period for these cash flows if the initial cost is $10,400? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Discounted payback period years b. Discounted payback period years c. Discounted payback period yearsarrow_forward
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