NPV and maximum return A firm can purchase new equipment for $37,000 that generates an annual cash inflow of $8,000 for 8 years. a. Determine the net present value (NPV) of the asset, assuming that the firm has a cost of capital of 11%. Is the project acceptable? b. Determine the maximum required rate of return that the firm can have and still accept the asset. a. The net present value (NPV) of the new equipment is $ (Round to the nearest cent.) Based on its NPV, is the new equipment acceptable? (Select the best answer below.) Yes No b. The maximum required rate of return the firm can have and still accept the new equipment is %. (Round to two decimal places.)

A company is analyzing two mutually exclusive projects, S and L, whose cash flows are shown below: Years 0 1 2 3 4 S -1,100 900 350 100 10 L -1,100 0 300 550 850 The company's cost of capital is 12 percent, and it can get an unlimited amount of capital at that cost. The cutoff payback period is two years. Which project should the company choose based on payback period and discounted payback period? Question 5 options: Based on payback, choose project L; based on discounted payback, also choose L. Based on payback, choose project L; based on discounted payback, choose neither. Based on payback, choose project S; based on discounted payback, also choose S. Based on payback, choose project S; based on discounted payback, choose neither.

Please answer the following questions using the information below: NPV. Using a 10% required rate of return, calculate the NPV for this project. Should  it be accepted or rejected?  PI. Calculate the Profitability Index (PI) for this project. Should it be accepted or  rejected?   Consider the following cash flows:  Year 0 1 2 3 4 5 6  Cash Flow -$8,000 $3,000 $3,600 $2,700 $2,500 $2,100 $1,600  Payback. The company requires all projects to payback within 3 years. Calculate the payback period. Should it be accepted or rejected?  Discounted Payback. Calculate the discounted payback using a discount rate of 10%.  Should it be accepted or rejected? IRR. Calculate the IRR for this project. The company’s required rate of return is  10%. Should it be accepted or rejected?  NPV. Using a 10% required rate of return, calculate the NPV for this project. Should  it be accepted or rejected?  PI. Calculate the Profitability Index (PI) for this project. Should it be accepted or  rejected?…

​(​NPV, ​PI, and IRR calculations​) Fijisawa Inc. is considering a major expansion of its product line and has estimated the following free cash flows associated with such an expansion. The initial outlay would be ​$1,850,000​, and the project would generate incremental free cash flows of ​$600,000 per year for 5 years. The appropriate required rate of return is 9 percent.   a. Calculate the NPV. b. Calculate the PI. c. Calculate the IRR. d. Should this project be​ accepted?