(Ignore income taxes in this problem.) Your Company is considering an investment proposal in which a working capital investment of $45,000 would be required. The investment would provide cash inflows of $5,000 per year for seven years. The company's discount rate is 8%.  What is the investment's net present value?  a- $4,115 b- $3,530 c- $7,265 d- $5,645

c) Consider this question: XYZ Company can borrow money at an interest rate of 10% (that's their Cost of Capital). They have an opportunity to invest in a project that will generate returns (Free Cash Flows) over the next three years. One year from now, the project will generate $80,000 in FCF, two years from now the project will generate $90,000 in FCF, and three years from now the project will generate $100,000 in FCF. The project will require an investment of $230,000. Is it worth doing? Time 1 year from now 2 years from now 3 years from now Free Cash Flow $ $ Cost of Capital 10% 80,000 90,000 100,000

Bensington Glass Co. is considering the expansion of it spandrel glass business line. They plan to convert an unused space of their warehouse into additional manufacturing space. They estimate the initial investment will be $9,350,000 and expect the new production to create additional cash flows of $4,105,000 in year's one through ten. If Bensington Glass uses a discount rate of 15%, what is the project's discounted payback period? O 4.16 2.99 2.28 3.25

You are considering investing in a project which will last four years. You will invest £500,000 at the beginning of the project and in return get an annual cash-flow of £200,000. The company has calculated that the cost of capital will be 9%. The discount rate of 9% gives the following Discount Factors (DF): Year 0 1.000 Year 1 0.917 Year 2 0.841 Year 3 0.772 Year 4 0.708 What is the Net Present Value (rounded up)? OA. £700,000 OB. £800,000 OC. £148,000 OD. £300,000

hi, can you solve this ?

Garry Manufacturing Company is considering a three-year project that has a cost of $75,000. The project will generate after-tax cash flows of $33,100 in Year 1, $31,500 in Year 2, and $31,200 in Year 3. Assume that the firm's proper rate of discount is 10% and that the firm's tax rate is 40%. What is the project's payback and outline any limitations in using the payback period method in selecting acceptable projects?

Co. has an investment opportunity (Project B) that requires a cash outlay of $18,000 today. They estimate that they will receive in exchange $6,200 in year 1, $6,500 in year 2, and $8,200 in year 3. Our Co 10. Marvelous me a) What are the IRR and the NPV of Project B? b) If the discount rate is 10%, would you invest in Project B? c) Let's imagine that we had a second project (Project B) that has an IRR of 18%. If the crossover rate between these two projects is 13%, which project would you choose when the appropriate discount rate is below that crossover rate?

Godo

Ivy's Ice Cream is looking at an opportunity that would require an investment of $900,000 today.  The investment will provide cash flows of $250,000 in the first year, $400,000 in the second year, and $600,000 in the third year.   If the interest rate is 8%, what is the NPV of this investment opportunity?  Should Ivy's Ice Cream move forward with this investment based on the NPV? (Round your answer to the nearest whole dollar.)

(34). Subject  :- Finance