CRC Inc. is buying new equipment that has the following cash flows: Year Cash Flow -$17.7 0 -$500 What is the NPV if the interest rate is $6%? $482.24 1 $100 2 $200 3 $250
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- An investment project has the following cash flows. 2. 001 : Cash Flow Year 060 $300 1 $300 2 01 $300 3 4F $500 4 $500 21 bdl $500 6 Suppose the discount rate is 8%. (a) What is the value of the cash flows today? 2 00 14 (b) What is the value of the cash flows at year 6? (c) What is the value of the cash flows at year 3? 3ESolve for the value of X in the accompanying table, so that the cash flow A is equivalent to the cash flow B. Let i 8% per year. Cash flow A Cash flow B Year Cash flow, $ Year Cash flow, S 2. 8,000 2. 3. 3. 4. -2X 8,000 3X Select one: O a. 8381.6 O b. 9009.4 O c.7126.0 O d. 9637.2 O e. 7753.8 4.A company is planning to expand its business is costing OMR 21756. The following cash inflows are expected. Calculate Profitability index given the rate of discounting to be 3.008% Machine A Years 12960 1 13300 2 12500 14500 4 اخترأحد الخيارات a. 27675.7870 b. 0.440 c. none of the options O d. 2.289 O e. 2.272 O 3.
- A company is planning to expand its business which is costing OMR 80000. The following cash inflows are expected to come. Calculate Profitability index for the machine given the rate of discounting to be 5.005% 1 Machine A Years Lia 15000 1 23000 42500 3 52300 4 اختراحد الخيارات a. 1.50 b. 0.23 C. None of the options d. 1.34 e. 254 اجل اختماريThe net present value (NPV) the cash flows from T=0 to T=3 is $2278 when using a 10% discount rate. The missing cash flow from year 2 is closest to ________. T0=-28,000 T1=10,000 T2=??? T3=15,000.Consider the following timeline detailing a stream of cash flows: Date Cash Flow $1,000 $2,000 O $6,326.40 $ 7,136.73 O $5,022.10 O $5,423.87 0 O $ 6,832.51 1 If the current market rate of interest is 8% per year, then the future value (FV) of this stream of cash flows in year 3 is closest to O $ 6,000.00 2 $3,000 3 FV=?
- Consider the following cash flows: Cash Flow -$ 32,000 14, 200 17,500 11,600 Year 0 WNHO 1 3 a. What is the NPV at a discount rate of zero percent? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. b. What is the NPV at a discount rate of 10 percent? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. c. What is the NPV at a discount rate of 20 percent? 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. d. What is the NPV at a discount rate of 30 percent? 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. a. Net present value b. Net present value c. Net present value d. Net present valueA real estate investment has the following expected cash flows: Year Cash Flows 1 $13,000 2 12,000 3 24,000 4 25,000 The discount rate is 4 percent. What is the investment’s present value? Round your answer to 2 decimal places; for example 2345.25.Specter Co. has identified an investment project with the following cash flows. What is the present value of these cash flows if the discount rate is 18%? Year Cash Flow $795 S945 $1,325 | S1,860 1 2 3 4 $2450.28 $3118.22 $2250.18 $3314.59
- ed ok O t 1 ht 0 ences For the given cash flows, suppose the firm uses the NPV decision rule. Cash Flow Year 0 123 a. NPV b. NPV -$ 150,000 a. At a required return of 10 percent, what is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. At a required re urn of 20 percent, what is the NPV of the project? (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.) 66,000 73,000 57,000Consider the following cash flows: Year Cash Flow $32,000 13,700 18,000 11,100 a. What is the NPV at a discount rate of zero percent? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. What is the NPV at a discount rate of 10 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the NPV at a discount rate of 20 percent? (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.) d. What is the NPV at a discount rate of 30 percent? (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.) а. Net present value b. Net present value C. Net present value d. Net present value 123What amount of cash must be invested today in order to have $60,000 at the end of one year assuming the rate of return is 9%? (Do not round your PV factors.)A. $54,600.00B. $45,454.56 C. $55,045.88 D. $54,000.00