An entrepreneur is offered a service contract that will cost him $700,000 initially. The contract has a 5 years of life and will generate an after tax cash inflow of $180,000 per year. The cost of capital of this project is 12%. What’s the NPV of the project? Should the entrepreneur accept the contract? Group of answer choices $51,140; accept $68,418; accept $648,860; reject -$48,524; reject -$51,140; reject

Bill Williams has the opportunity to invest in project A that costs $6,900today and promises to pay $2,100​, $2,400​, $2,400​, $2,000 and $1,800over the next 5 years. ​ Or, Bill can invest $6,900 in project B that promises to pay $1,500​, $1,500​, $1,500​, $3,600 and $4,000 over the next 5 years.   ​(​Hint: For mixed stream cash​ inflows, calculate cumulative cash inflows on a​ year-to-year basis until the initial investment is recovered.​)   a. How long will it take for Bill to recoup his initial investment in project A?   b. How long will it take for Bill to recoup his initial investment in project​ B?   c. Using the payback​ period, which project should Bill​ choose?   d. Do you see any problems with his​ choice?

Katie must decide which one of the following initiatives she will pursue. Each of the projects will take the same amount of capital to execute and will deliver the projected results in the same timeframe. Given current resources, she can only choose one. Which one should she choose? Project Samson: 50% probability of $1,000,000 profit; 50% probability of $0 Project Delilah: 30% probability of $750,000 base-line profit; 30% probability of 20% less than the base; 20% probability of 30% less than the base; and 20% probability of 10% more than the base Project Mark: 50% probability of $600,000 base-line profit; 25% probability of 20% less than the base; and 25% probability of 20% more than the base Project Omega: 60% probability of $1,500,000 profit; and 40% probability of $500,000 loss   Group of answers.  A. Project Omega B. Project Mark C. Project Samson D. Project Delilah Please solve in excel and please show workings.

Canada Golf Club (CGC) is considering three independent projects for July 2021 tournament. The three projects are project A, project B and project C. Given the following cash flow information, calculate the payback period for each. If CGC requires a 3-year payback before an investment can be made, which project(s) would be accepted?   Year 0 (Investment)   A ($) Project -1,000 B ($) Project -$10,000 C ($)Project -$5,000 1 600 4,000 2000 2 300 3000 1000 3 200 2000 2000 4 100 2000 1000

A 24-year-old December 2019 graduate has decided he wants the equivalent of $2,500,000 in January 1, 2020 buying power to be available exactly 40 years later on January 1, 2060. He plans to make his first investment of $Z on January 1, 2021 and every year thereafter, with the last payment of $Z on January 1, 2060. He can earn 8% on his money and expects inflation to run 5%. Solve, a. How many actual dollars will there be in his account immediately after his last deposit? b. What is $Z?

Project for Ma Consider a nominal prize of one million dollars, to be paid in twenty annual payments of $50,000. Assume when each payment is made, the recipient immediately pays Federal income tax at a 25% rate and invests the rest. Assume the funds invested eam 6% per year, with both Federal taxes paid from that income and the remainder reinvested. The Assignment 1. Determine the total amount of money the winner will have at the end of twenty years. This will be one year after the last payment 2. Determine the amount the winner would have had at the end of twenty years if he or she had been given one million dollars all at once under the same conditions regarding taxes and Investment. 3. Determine the amount for a lump sum payment that would leave the winner with the same amount as the annuity after twenty years. 1. Discuss assumptions that were made to simplify this assignment along with important factors that have been omitted.

Canada Golf Club (CGC) is considering three independent projects for July 2021 tournament. The three projects are project A, project B and project C. Given the following cash flow information, calculate the payback period for each. If CGC requires a 3-year payback before an investment can be made, which project(s) would be accepted?   Year Project A ($) Project B ($) Project C ($) 0 (Investment) -2,000 -$10,000 -$5,000 1 -2,000 -6,000 -12,000 2 800 4,000 5,000 3 600 3,000 5,000 4 600 2,000 5,000 5 400 2,000 2,000