Dowling sportswear is considering building a new factor 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 $900,000 per year for 7 years. Calculate the project’s NPV using a discount rate of 7 percent. If the discount rate is 7 percent, then the project’s NPV is Round to the nearest dollar

Play Products is considering producing toy action figures and sandbox toys. The products require different specialized​ machines, each costing ​$1.4million. Each machine has a​ five-year life and zero residual value. The two products have different patterns of predicted net cash​ inflows:  Play will consider making capital investments only if the payback period of the project is less than 3.5 years and the ARR exceeds​ 8%. Annual Net CashAnnual  Inflows Year Toy action figure project Sandbox toy project Year 1. . . . . . . . . . . $305,450 $550,000 Year 2. . . . . . . . . . . 305,450 350,000 Year 3. . . . . . . . . . . 305,450 310,000 Year 4. . . . . . . . . . . 305,450 270,000 Year 5. . . . . . . . . . . 305,450 25,000 Total $1,527,250 $1,505,000 Calculate the toy action figure​ project's payback period. If the toy action figure project had a residual value of $150,000​,would the payback period​ change? Explain and…

Jasmine Manufacturing is considering a project that will require an initial investment of $52,000 and is expected to generate future cash flows of $10,000 for years 1 through 3, $8,000 for years 4 and 5, and $2,000 for years 6 through 10. What is the payback period for this project?

(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 ​$900,000 per year for 9 years. Calculate the​ project's NPV using a discount rate of 8 percent. If the discount rate is 8 ​percent, then the​ project's NPV is ​$ ?

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:

Sunshine Smoothies Company (SSC) manufactures and distributes smoothies. It is considering the introduction of a "weight loss" smoothie. The project would require a $4 million investment outlay today (t = 0). The after-tax cash flows would depend on whether the weight loss smoothie is well received by consumers. There is a 30% chance that demand will be good, in which case the project will produce after-tax cash flows of $2 million at the end of each of the next 3 years. There is a 70% chance that demand will be poor, in which case the after-tax cash flows will be $1 million for 3 years. The project is riskier than the firm's other projects, so it has a WACC of 12%. The firm will know if the project is successful after receiving first year's cash flows. After receiving the first year's cash flows it will have the option to abandon the project. If the firm decides to abandon the project the company will not receive any cash flows after t = 1 , but it will be able to sell the assets…

Need a little help with this one

All American Telephones Inc. is considering the production of a new cell phone. The project will require an after-tax investment of $13 million. If the phone is well received, the project will produce after-tax cash flows of $9 million a year for 3 years, but if the market does not like the product, the after-tax cash flows will be only $1 million per year. There is a 50% probability of both good and bad market conditions. All American can delay the project a year while it conducts a test to determine whether demand will be strong or weak. The delay will not affect the dollar amounts involved for the project's after-tax investment or its after-tax cash flows-only their timing. Because of the anticipated shifts in technology, the 1-year delay means that after-tax cash flows will continue only 2 years after the initial investment is made. All American's WACC is 13%. What action do you recommend? Enter your answers in millions. For example, an answer of $10,550,000 should be entered as…

Sons Inc. management is considering purchasing a new machine at a cost of $4,390,000. They expect this equipment to produce cash flows of $845,890, $819,250, $917,830, $1,103,400, $1,093,260, and $1,306,800 over the next six years. If the appropriate discount rate is 15 percent, what is the NPV of this investment? (Enter negative amounts using negative sign e.g. -45.25. Do not round discount factors. Round other intermediate calculations and final answer to 0 decimal places, e.g. 1,525.) The NPV is   $

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?