Part 1: Net Present Value (NPV) First, we need to calculate the annual cash flow. The net income is given, and since depreciation is a non-cash expense, we add it back to net income to find the cash flow: Annual Cash Flow = Net Income + Depreciation Annual Cash Flow = $200,000+ $200,000 Annual Cash Flow = $400,000 The project lasts for 8 years with an initial investment of $2,000,000. The NPV formula is: CE NPV - Initial Investment = t=1 where CF, is the annual cash flow, is the discount rate, and 12 is the number of years. NPV= 400,000 - 2,000,000 t=1 (1+0.10) Calculating each term: Year 1: Year 2: Year 3: 400,000 (1+0.10)1 400,000 (1+0.10)² 400,000 (1+0.10) 400,000 1.10 400,000 363, 636.36 330, 578.51 1.21 400,000 = 300, 525.98 1.331 Year 4: 400,000 400,000 (1+0.10)4 1.4641 400,000 400,000 273, 205.44 Year 5: 248, 368.58 (1+0.10)5 1.61051 Year 6: Year 7: Year 8: 400,000 400,000 (1+0.10)6 1.77156 400,000 400,000 (1+0.10)7 1.94872 400,000 400,000 (1+0.10)8 2.14359 225, 789.62 =205, 263.29 = 186, 602.99 Adding these present values together and subtracting the initial investment: NPV 363, 636.36 + 330, 578.51 +300, 525.98 +273, 205.44 + 248, 368.58 +225,789. NPV = 2,133,970.77-2, 000, 000 = 133,970.77 So, the NPV is $133,970.77. Part 2: Internal Rate of Return (IRR) The IRR is the discount rate that makes the NPV of the project zero. To find the IRR, we need to solve the following equation:

Consider the following cash flows: Year  0  1  2  3  4  5  6  Cash Flow  -$9,000  $2,000  $3,600  $2,700  $2,100  $2,100  $1,600    C. IRR. Calculate the IRR for this project. The company’s required rate of return is 10%. Should it be accepted or rejected?    D. NPV. Using a 10% required rate of return, calculate the NPV for this project. Should it be accepted or rejected?    E. PI. Calculate the Profitability Index (PI) for this project. Should it be accepted or rejected?

Need answer with correct calculation

Using the method of your choice calculate the Net Present Value of the following cash flows. Assume that the required return on this project is 15%                      Project A  Initial Cost   -$150 Year 1           $175 Yeat 2           $100

The initial cost of a project is $18 million. If a project returns $3 million at year 1 and that cash flow increases by $2 million each year afterwards, what is the payback period? The initial cost of a project is $18 million. If a project returns $3 million at year 1 and that cash flow increases by $2 million each year afterwards, what is the payback period? 5.77 years 4.25 years 3.33 years 2.66 years

A $670 investment has the following expected cash returns: Year Net Cash Flow $500 100 200 1 2 3 Compute the internal rate of return for this project. Round your answer to two decimal places. %

I will rate. Solve correctly and show all works.

There a project with the following cash flows: Year: 1, 2, 3, 4 Cash Flow: -$21,800 6,300 7,350 6,750 4,400 What is the payback period?

AASBC is considering a project that has the following cash flow stream. Year 3 Cash Flows 0 -$10,000 1 $4,000 2 $3,500 $3,800 a. Calculate the project's IRR. b. What is the project's payback period? c. If the project's cost of capital is equal to 10%, should AASBC accept the project?

For project A, the cash flow effect from the change in net working capital is expected to be $490.00 at time 2 and the level of net working capital is expected to be $750.00 at time 1. What is the level of current assets for project A expected to be at time 2 if the level of current liabilities for project A is expected to be $2,600.00 at time 2? $2,860.00 (plus or minus $10) $3,840.00 (plus or minus $10) $1,360.00 (plus or minus $10) $2,340.00 (plus or minus $10) None of the above is within $10 of the correct answer