A project that will provide annual cash flows of $2,600 for nine years costs $10,700 today? a. At a required return 12%, what is the NPV of the project? (DO NOT ROUND INTERMEDIATE CALCULATIONS AND ROUND YOUR ANSWER TO 2 DECIMAL PLACES) b. At a required return of 28%, what is the NPV of the project? (DO NOT ROUND INTERMEDIATE CALCULATIONS AND ROUND YOUR ANSWER TO 2 DECIMAL PLACES) c. At what discount rate would be indifferent between accepting the project and rejecting it? (DO NOT ROUND INTERMEDIATE CALCULATIONS AND ROUND YOUR ANSWER TO 2 DECIMAL PLACES) Could someone please help me solve this in excel?
A project that will provide annual cash flows of $2,600 for nine years costs $10,700 today? a. At a required return 12%, what is the NPV of the project? (DO NOT ROUND INTERMEDIATE CALCULATIONS AND ROUND YOUR ANSWER TO 2 DECIMAL PLACES) b. At a required return of 28%, what is the NPV of the project? (DO NOT ROUND INTERMEDIATE CALCULATIONS AND ROUND YOUR ANSWER TO 2 DECIMAL PLACES) c. At what discount rate would be indifferent between accepting the project and rejecting it? (DO NOT ROUND INTERMEDIATE CALCULATIONS AND ROUND YOUR ANSWER TO 2 DECIMAL PLACES) Could someone please help me solve this in excel?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
A project that will provide annual cash flows of $2,600 for nine years costs $10,700 today?
a. At a required return 12%, what is the
b. At a required return of 28%, what is the NPV of the project? (DO NOT ROUND INTERMEDIATE CALCULATIONS AND ROUND YOUR ANSWER TO 2 DECIMAL PLACES)
c. At what discount rate would be indifferent between accepting the project and rejecting it? (DO NOT ROUND INTERMEDIATE CALCULATIONS AND ROUND YOUR ANSWER TO 2 DECIMAL PLACES)
Could someone please help me solve this in excel?
![Problem 8-7 Calculating NPV and IRR [LO 3, 4]
A project that will provde annual cash flows of $2,600 for nine years costs
$10,700 today.
a. At a required return of 12 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
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F483c3d17-1621-47af-bfd2-86acecf64938%2F84e2b917-6fdc-44b0-a59f-52c17b57adce%2Frvx59vc_processed.png&w=3840&q=75)
Transcribed Image Text:Problem 8-7 Calculating NPV and IRR [LO 3, 4]
A project that will provde annual cash flows of $2,600 for nine years costs
$10,700 today.
a. At a required return of 12 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
%
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