An investment project has the following cash flows over its economic life of three years: Year 0 1 2 3 Cash Flow (£/$/€/NOK): -142,700 51,000 62,000 73,000 Required: 1) Calculate the net present value (NPV) of the project at a discount rate of 0, 10 and 20 per cent respectively. 2) Draw a graph of the project NPVs calculated under 19 and use the graph to estimate, and clearly indicate, the project internal rate of return (IRR) to the nearest integer percentage.

The following table contains the estimated cash flows of a project. Assume the appropriate discount rate (hurdle rate) is 14%.  Year       Operating Cash Flow  0             -$20,000  1              $7,000   2              $8,000  3              $9,000  4              $4,000   a. What is the payback period of project 1?

A project’s cash flows are listed below. Assume the appropriate discount rate for this project is 14%. The profitability index for this project is closest to ________. Year Cash Flow 0 -8000 1 3200 2 3200 3 3200 4 3200   (a) 0.17 (b) 0.25 (c) 0.66 (d) 0.18

*** By using the following table format, calculate:   (a) Calculate the, the Payback Period, and the net Present Value of for each project.  Calculation of Payback Period for each project:   CUMULATIVE CASH FLOWS   Project A   Project B   Project C   £   £   £ Year 1           Year 2           Year 3           Year 4           Year 5                       Payback Period (years and months)           Calculation of Net Present Value for each project:     Discount Factors Project A Project B Project C   CF DCF CF DCF CF DCF     £ £ £ £ £ £ Year 1               Year 2               Year 3               Year 4               Year 5                               Total DCF               Initial investment               Net present value                                  b) For each of the above methods of project appraisal recommend which project should be taken up.  c) Using all the information gathered from the above techniques which…

A project with the following cash flows received each year and with a required return of 8%.Initial Outlay = RM100Cash Flows: Year 1 = RM40Year 2 = RM50Year 3 = RM60 With the information given, compute: i. Discounted payback periodii. Net Present Value andiii. Profitability Index.

The expected cash flows of a project are as follows. Year Cash Flow -100000, 20,000 ,30,000 40,000 ,50,000 30,000 The cost of capital is 12 per cent. Calculate the following and evaluate the project under each methods a. net present value b. Profitability Index c. Internal rate of Return d. Modified internal rate of Return and Payback period

Cannonier, Inc., has identified an investment project with the following cash flows: Year Cash Flow 1 $1,050 1,280 3 1,500 4 2,240 What is the future value at a discount rate of 13 percent?

Calculate/estimate the IRR(s) for a 6-year project with the following cash flows: CF0 = -50, CF1 =28 = CF2 = CF3 = CF4 = CF5, and CF6 = -93. In Excel, plot the NPV (= Y axis) against r (= discountrate), using r = 0%, 2%, and so on until you find all IRRs in the chart. Identify/estimate all IRRs.

Assume a project has cash flows of -$54,300, $18,200, $37,300, and $14,300 for Years 0 to 3, respectively. What is the profitability index given a required return of 12.6 percent? 1.02 .95 .98 1.06 ☐ 1.00

Most Company has an opportunity to invest in one of two new projects. Project Y requires a $350,000 investment for new machinery with a four-year life and no salvage value. Project Z requires a $350,000 investment for new machinery with a three-year life and no salvage value. The two projects yield the following predicted annual results. The company uses straight-line depreciation, and cash flows occur evenly throughout each year. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Project Y Project z $350,000 Sales Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses $280,000 49,000 70,000 126,000 25,000 270,000 80,000 24,000 35,000 42,000 126,000 25,000 228,000 52,000 15,600 Pretax income Income taxes (30%) Net income $56,000 $ 36,400