Problem 12-14 (Algo) Net present value method [LO12-4]Aerospace Dynamics will invest $115,000 in a project that will produce the followingcash flows. The cost of capital is 11 percent. (Note that the fourth year's cash flow isnegative.) Use Appendix B for an approximate answer but calculate your final answerusing the formula and financial calculator methods.Year112345Cash Flow$ 38,00046,00040,000(46,000)85,000a. What is the net present value of the project?Note: Negative amount should be indicated by a minus sign. Do not roundintermediate calculations and round your answer to 2 decimal places.Net present valueb. Should the project be undertaken?yes○ no

1. Compute the Present Value of Cash Flows:For each year, multiply the cash flow by the present…

Answered: Problem 12-14 (Algo) Net present value…

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter26: Capital Investment Analysis

Section: Chapter Questions

Problem 3CMA

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Problem 12-15 (Algo) Net present value method [LO12-4] The Horizon Company will invest $67,000 in a temporary project that will generate the following cash inflows for the next three years. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. Year 1 2 3 Cash Flow $ 21,000 34,000 36,000 The firm will also be required to spend $18,000 to close down the project at the end of the three years. a. Compute the net present value if the cost of capital is 9 percent. Note: Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places. Net present value b. Should the investment be undertaken? No Yes
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Please give exact answer and excel steps Jeans LLC has a project with the following cash flows . Its required rate of return is 5 % , Year 012345 Cash Flow Project A -52,000.00 25,000.00 17,000.00 14,000.00 12,000.00 -3,000.00 What is the internal rate of retum ( IRR ) for this project ? options: a. 11.73859230479%b. 11.73962884992%c. 11.738592037872%d. 11.738591574995%e. 11.738592402818%f. 11.738672984783% Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

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