CW Pharmaceuticals is considering a drug project that costs $3.75 million today and is expected to generate end-of-year annual proceeds of $125,000 forever. At what discount rate would the present value of the proceeds be equal to the cost of the drug project?

A project is expected to cost $4 million today and generate a net after-tax cash flow of $600,000 at the end of year 1 and $500,000 at the end of year 2. The net cash flows from year 2 onwards are expected to grow at 6% per annum forever. If the project’s discount rate is 12%, calculate the net present value of the project. Show all calculations.

A project requires a $1 million initial investment, and will yield incremental after-tax cash flows of $225,000 next year, and this will decline forever at rate of g = -5% per year.  What is the IRR of the project, stated as an APR compounded annually?

Television is considering a project with an initial outlay of $X (you will have to determine this amount). It is expected that the project will produce a positive cash flow of $54,000 a year at the end of each year for the next 13 years. The appropriate discount rate for this project is 8 percent. If the project has an internal rate of return of 13 percent, what is the project's net present value? *** a. If the project has an internal rate of return of 13%, then the project's initial outlay is $ the nearest cent.) (Round to

(Related to Checkpoint 11.1) (Net present value calculation) Dowling Sportswear is considering building a new factory to produce aluminum baseball bats. This project would require an initial cash outlay of $4,000,000 and would generate annual net cash inflows of $1,100,000 per year for 6 years. Calculate the project's NPV using a discount rate of 5 percent. *** If the discount rate is 5 percent, then the project's NPV is $. (Round to the nearest dollar.)

A new project will have an intial cost of $15,000. Cash flows from the project are expected to be $4,000, $6,000, and $8,000 over the next 3 years, respectively. Assuming a discount rate of 10%, what is the project's IRR?

Beene Distributing is considering a project that will return $150,000 annually at the end of each year for the next six years. If Beene demands an annual return of 7% and pays for the project immediately, how much is it willing to pay for the project?

Compute the traditional payback period (PB) and the discounted payback period (DPB) for a project that costs $329,000 if it is expected to generate $94,000 per year for five years? The firm’s required rate of return is 12.5 percent? Should the project be purchased?

A project requires an initial investment of $55.09 million to buy new equipment, and will provide after-tax cash flows of $21 million per year for 4 years. What is the project's internal rate of return?

(Net present value​ calculation)   Dowling Sportswear is considering building a new factory to produce aluminum baseball bats. This project would require an initial cash outlay of ​$6,000,000 and would generate annual net cash inflows of ​$1,100,000 per year for 9 years. Calculate the​ project's NPV using a discount rate of 5 percent. If the discount rate is 5 ​percent, then the​ project's NPV is ​$___________________​(Round to the nearest​ dollar.)