A project is expected to cost $4 million today and generate a net after-tax cash flow of $600,000 at the end of year 1 and $500,000 at the end of year 2. The net cash flows from year 2 onwards are expected to grow at 6% per annum forever. If the project’s discount rate is 12%, calculate the net present value of the project. Show all calculations.

. calculate the net present value of the following: Project A requires an initial investment of $1,000 and is expected to generate cash flows of $400 per year for 3 years

You have the choice to invest in a related project at time T+1. The required investment is $10 million, but will generate $1 million per year in the next ten years starting from time T+1. Using a rate of 8%, calculate the present value of the new project at time T.

A project requires an initial investment of $60 million and will then generate the same cash flow every year for 7 years. The project has an internal rate of return of 16% and a cost of capital of 10%. 1. What is the project's NPV (in $ million)?

Suppose that a project requires an initial investment of 20 000 USD at the begynning of year 1. The project is expected to return 25 000 USD at the end of year 1. The required rate of return for the project is 20%. Calcualte the Net Present Value of the project as well as the Internal Rate of Return.

Myca Corporation has a project with the following cash flows. What is the value of the cash flows today assuming an annual interest rate of 10.6 percent? Year Cash Flow 1 $ 1,940 2 2,480 3 2,850 4 2,860

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? 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 years

A project that provides annual cash flows of $22,500 for 7 years costs $84,000 today. a. If the required return is 12 percent, what is the NPV for this project? b. Determine the IRR for this project.

11) What is the rate of return (IRR) of a project that will generate revenues of $40,000 at the end of every year for 8 years, given the project will require an initial cash outlay today of $90,000 and another cash outlay of $80,000 in 6 years from today?

A project requires a $1 million initial investment, and will yield incremental after-tax cash flows of $225,000 next year, and this will decline forever at rate of g = -5% per year.  What is the IRR of the project, stated as an APR compounded annually?