IF THE TOTAL CASH INFLOWS FOR 5 YEARS IS $540,000.00, (WITH A HIGHEST INFLOW OF $150,000.) COMPUTE FOR THE PAYBACK RECIPROCAL IF THE INVESTMENT IS SET AT $ 300,000.00. 0.55 0.36 1.8 0.50 2.78
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- An investment project that gives cash flow for the first year $ 10,000 and the second $ 15,000; The interest rate is 8.5%; The present value of the investment is equal to (to the nearest decimal place): Select one: a. $ 25,000 b. $ 21929 c. $ 30,000 d. $ 20,000Determine the MIRR using a financing rate of 16% and a reinvestment rate of 20% using the following cash flows: Year Cash Flow 0 1 2 3 4 5 6 7 -60,000 25,000 25,000 -17,000 35,000 35,000 35,000 35,000£6000 is deposited at a nominal rate of interest of 3.5% per annum, calculate the number of years that deposit has been doubled if interest is compound (i) semiannually, (ii) monthly, and (iii) continuously. (keep two decimal places)(b) The net cash flow for a project is given as follows: Year 0 1 2 3 4 Project A -10,000 -3,000 4,000 6,000 8,000 Calculate the IRR. State the conditions for this project to be profitable.
- Compute the payback statistic for Project A if the appropriate cost of capital is 7 percent and the maximum allowable payback period is four years. (Round your answer to 2 decimal places.) Project A Time: 0 1 2 3 4 5 Cash flow: −$2,300 $870 $870 $780 $560 $360Annual cash inflows that will arise from two competing investment projects are given below: Investment A $ 3,000 4,000 5,000 6,000 $ 18,000 Year 1 2 3 4 The discount rate is 10% Click here to view Exhibit 148 1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables Required: Compute the present value of the cash inflows for each investment Year 1234 S S Investment B $6,000 5,000 4,000 3,000 $18,000 Present Value of Cash Flows Investment A 300 300 $ Investment BAn investment project costs $15,600 and has annual cash flows of $3,900 for six years. a. What is the discounted payback period if the discount rate is zero percent? Discounted payback period b. What is the discounted payback period if the discount rate is 6 percent? Discounted payback period
- the project's net cash flow is listed as follows. Please calculate its simple payback period and discounted payback period (i=10%). End of 2 3 4 1 5 Year $12 $11 $10 $10 $9, ,00 ,00 ,00 Net -$4 Cash 2,00 ,00 00 FlowMultiple choice: If for five years, the cash inflows are uniform at P120,000 which present value of annuity factor are you going to use to covert the inflows into the present value assuming that the cost of capital is 12%? • 0.56743• 1.56743• 3.60478• 2.40188An investment project costs $13,200 and has annual cash flows of $3,600 for six years. a. What is the discounted payback period if the discount rate is zero percent? Discounted payback period 3.67 b. What is the discounted payback period if the discount rate is 5 percent? Discounted payback period 4.15
- Mendez Company has identified an investment project with the following cash flows. Year Cash Flow 1 2 3 $780 1,050 1,310 1,425 a. If the discount rate is 8 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the present value at 17 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the present value at 25 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Present value at 8% b. Present value at 17% c. Present value at 25%NikulGiven the following end of year cash flows what is the IRR of this project? Also assume that following year four the cash flows will grow by 3% in perpetuity. Enter your answer as a percent without the “%”; round your final answer to two decimals. Timeline: 0 1 2 3 4CF: -4,000 200 350 400 500