Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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For the following cash flow series, which of the statements is true?
Year
- a) The NPV is $561.60 at a discount rate of 6%.
- b) The NPV is $556.65 at a discount rate of 8%.
- c) The
IRR is 9.81%. - d) The payback is 2 years.
- e) None of the above.
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- 1. Discounted Payback (DCPB) and IRR analysis. Use the cash flow situation (table below) to answer. a. Determine the DCPB based on a MARR rate of 8.0% b. Determine the IRR Year Cash Flow (in $1000's) 0 1 -5500 +1500 2 +1800 3 +1500 4 +1800 5 6 +1500 +1800 7 +1500arrow_forwardCalculate the NPV of the following cash flows using a 10% discount rate? The first cashflow is negative, Year 0= -900, all others are positive Year 1= +100, Year 2= +100, Year 3= +400, Year 4= +500, Year 5= +500 a. $36 b. $ 520 c. $ 996 d. $ 326 e. $ 226arrow_forwardCan you please confirm my calculations: discount rate is 6%; end of year cash flows are as follows: Year 0: -20,000; year 1 through 5 are each 5,000; is the net present value of all cash flows 1061.82? and how do you calculate "at what discount rate is the net present value "0"?arrow_forward
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