Channel Tunnel Inc. plans to build an additional 23-mile-long tunnel under the English Channel for added train service. The cost (NINV) of the tunnel is expected to be $3.2 billion. Net cash inflows are expected to equal $793 million per year. How many years must the firm generate this cash inflow stream for investors to earn their required 24 percent rate of return? Use Table IV to answer the question. Round your answer to the nearest whole number. years

FYT Inc estimates that a new project with conventional cash flows will generate an NPV of $500,000.  What is the project's profitability index given that the required investment is $3.12 million? Enter index rounded to the nearest hundredth,  as in "1.01"

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Vijay

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You have a potential project for which you want to establish the value of any possible real options. The project will have an initial cost of $86 million, which must be paid at the time of investment. You realize that the project has four possible cash flows starting in year 1 and continuing forever. First, there is a 22% chance of earning $1.02 million per year starting in year 1. Second, there is a 26% chance of earning $6.54 million per year starting in year 1. Third, there is a 20% chance the the project will earn $5.82 million per year. Fourth, there is a chance that the project will earn $3.22. These are the only four possibilities. In 2 year(s), you will be able to improve the quality of your manufacturing process to increase the net CFs from the project if you would like to. The cost of this will be $62 million, and the cash flows will increase beginning immediately when you make this investment (the CFs increase starting the same year that you pay the improvement cost) and…

You run a construction firm. You have just won a contract to build a government office complex. Building it will require an investment of $9.5 million today and $5.5 million in one year. The government will pay you $21.7 million in one year upon the building's completion. Suppose the interest rate is 10.3%. a. What is the NPV of this opportunity? b. How can your firm turn this NPV into cash today? www. a. What is the NPV of this opportunity? The NPV of the proposal is $ million. (Round to two decimal places.) b. How can your firm turn this NPV into cash today? (Select the best choice below.) O A. The firm can borrow $19.67 million today and pay it back with 10.3% interest using the $21.7 million it will receive from the government. B. The firm can borrow $15.0 million today and pay it back with 10.3% interest using the $21.7 million it will receive from the government. O C. The firm can borrow $15.0 million today and pay it back with 10.3% interest using the $19.67 million it will…

Normal Manufacturing Co. is purchasing a production facility at a cost of $22.5 million. The firm expects the project to generate annual cash flows of $7 million over the next five years. What is the internal rate of return on this project? (Round the finall answer to the nearest percent.) 20% 18% O 17% O 19%

Your firm is considering investing in a project that will require an initial outlay of $10,000. You expect the project to have an operating life of four years. You expect it to generate the following cash flows: (1) $3,000 in the first year, (2) $4,000 in the second year, (3) $2,500 in the third year, and (4) $2,000 in the final year. What is the project's internal rate of return? 8.74% 6.35% O 15.00% 3.56%

Vishano