Consider the following projects, X and Y where the firm can only choose one. Project X costs $1500 and has cash flows of $678, $652, $347, $111, $54, $16 in each of the next 6 years. Project Y also costs $1500, and generates cash flows of $738, $693, $405 for the next 3 years, respectively. WACC=11%. Plot NPV profiles for the two projects. Identify the projects’ IRRs on the graph.

Find the NPV of a project that costs $694,000 today and generates expected cash flows in each of the next three years of $155,000; $221,000; and $371,000. Use 10% as the cost of capital. Round your answer to the nearest dollar. Be sure you enter a negative sign (-) if your answer is a negative number.

What is the NPV of a project that costs $14,000 today and another $6,000 in one year, and is then expected to generate 12 annual cash inflows of $2,000 starting at the end of year 5. Cost of capital is 9%. Round to the nearest cent. ​[Hint: There are two outflows here, today and year 1. You will need to discount the year 1 cost at the project's discount rate when calculating PV(outflows).] Numeric Answer:

Assume that it costs $1,000 to start a project.  If the project will give $400 profit in the first year, $500 in the second year and $300 in the third year. find the payback period.  Now assume that the interest rate is 10%, find the net present value (NPV) and the profitability index (PI) for this project

Consider the following projects, X and Y where the firm can only choose one. Project X costs $1500 and has cash flows of $678, $652, $347, $111, $54, $16 in each of the next 6 years. Project Y also costs $1500, and generates cash flows of $738, $693, $405 for the next 3 years, respectively. WACC=11%.Calculate the projects’ NPVs, IRRs, payback periods.

Use the format in the figure below to perform a financial analysis. Create a spreadsheet to perform the analysis and show the NPV, ROI, and year in which payback occurs. + Perform a financial analysis for a project using the format provided in Figure 4-5. Assume that the projected costs and benefits for this project are spread over four years as fol- lows: Estimated costs are $200,000 in Year 1 and $30,000 each year in Years 2, 3, and 4. Estimated benefits are $0 in Year 1 and $100,000 each year in Years 2, 3, and 4. Use a 9 percent discount rate, and round the discount factors to two decimal places. Create a spreadsheet or use the business case financials template on the companion website to cal- culate and clearly display the NPV, ROI, and year in which payback occurs. In addition, write a paragraph explaining whether you would recommend investing in this project, based on your financial analysis. Discount rate 8% Assume the project is completed in Year 0 0 Costs Discount factor…

You are evaluating a project that costs $75,000 today. The project has an inflow of $ 155,000 in one year and an outflow of $65,000 in two years. What are the IRRs for the project? What discount rate results in the maximum NPV for this project? How can you determine that this is the maximum NPV?

Blink of an Eye Company is evaluating a 5-year project that will provide cash flows of $39,300, $80,430, $63,170, $61,250, and $44,470, respectively. The project has an initial cost of $182,560 and the required return is 8.8 percent. What is the project's NPV?

Answer all four of the required questions!

Project S has a cost of $10,000 and is expected to produce benefits (cash flows) of $3,000 per year for 5 years. Project L costs $25,000 and is expected to produce cash flows of $7,400 per year for 5 years. Calculate the two projects’ NPVs, IRRs, assuming a cost of capital of 12%. Which project would be selected, assuming they are mutually exclusive, using each ranking method? Which should actually be selected?