Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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A project has an initial cost of $60,000, expected net
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- A project has an initial cost of $55,000, expected net cash inflows of $14,000 per year for 6 years, and a cost of capital of 11%. What is the project's NPV? (Hint: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to the nearest cent.arrow_forwardA project that will provde annual cash flows of $3,000 for nine years costs $10,000 today. a. At a required return of 10 percent, what is the NPV of the project? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. At a required return of 28 percent, what is the NPV of the project? Note: 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. c. At what discount rate would you be indifferent between accepting the project and rejecting it? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. a. NPV b. NPV c. Discount rate %arrow_forwardPlease help me sir find the correct real asaparrow_forward
- Project L requires an initial outlay at t = 0 of $55,000, its expected cash inflows are $12,000 per year for 9 years, and its WACC is 9%. What is the project's MIRR? Do not round intermediate calculations. Round your answer to two decimal places.arrow_forwardProject A requires an initial outlay at t = 0 of $1,000, and its cash flows are the same in Years 1 through 10. Its IRR is 16%, and its WACC is 11%. What is the project's MIRR? Do not round intermediate calculations. Round your answer to two decimal places. %arrow_forwardProject L requires an initial outlay at t=0 of $60,000, its expected cash inflows are $11,000 per year for 9 years, and its WACC is 11%. What is the project's MIRR? Do not round intermediate calculations. Round your answer to two decimal places. %arrow_forward
- A project that will provde annual cash flows of $3,050 for nine years costs $10,200 today. a. At a required return of 11 percent, what is the NPV of the project? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. At a required return of 27 percent, what is the NPV of the project? Note: 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. c. At what discount rate would you be indifferent between accepting the project and rejecting it? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. a. NPV b. NPV c. Discount rate %arrow_forwardProject L requires an initial outlay at t = 0 of $55,000, its expected cash inflows are $11,000 per year for 9 years, and its WACC is 14%. What is the project's MIRR? Do not round intermediate calculations. Round your answer to two decimal places.arrow_forwarda. They payback period of project A is ___ years (round to two decimal places) The payback period of project B is ____ years. (round to two decimal places) According to the payback method, which project should the firm choose? b. The NPV of project A is $___ The NPV of project B is $___ c. The IRR of project A is ___ The IRR of project B is ___ d. Make a reccomendationarrow_forward
- A project has an initial cost of $35,000, expected net cash inflows of $8,000 per year for 9 years, and a cost of capital of 13%. What is the project's PI? (Hint: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to two decimal places.arrow_forwardWhen inputting an answer, round your answer to the nearest 2 decimal places. If you need to use a calculated number for further calculations, DO NOT round until after all calculations have been completed. For the final answer, Round to 2 decimal places. A firm has a WACC of 8.35% and is deciding between two mutually exclusive projects. Project A has an initial investment of $63.06. The additional cash flows for project A are: year 1 = $17.78, year 2 = $38.17, year 3 = $46.29. Project B has an initial investment of $72.12. The cash flows for project B are: year 1 = $52.25, year 2 = $37.11, year 3 = $33.12. Calculate the Following: Payback Period for Project A: Payback Period for Project B: NPV for Project A: NPV for Project B: If can't solve all pls skip it i dont need your answer then i wil definitely like for complete answer and skip if you can't.arrow_forwardA project requires an increase in inventories, accounts payable, and accounts receivable of $130,000, $95,000, and $65,000, respectively. If opportunity cost of capital is 4% and the project has a life of 14 years, and the working capital investments will be recovered at the end of the life of the project, what is the effect on the NPV of the project? Enter your answer rounded to two decimal places. Enter your response below. Numberarrow_forward
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