We are examining a new project. We expect to sell 5,600 units per year at $70 net cash flow apiece for the next 10 years. In other words, the annual operating cash flow is projected to be $70 × 5,600 = $392,000. The relevant discount rate is 18 percent, and the initial investment required is $1,550,000. What is the base-case NPV? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. After the first year, the project can be dismantled and sold for $1,270,000. If expected sales are revised based on the first year's performance, below what level of expected sales would it make sense to abandon the project? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) a. a. NPV b. Minimum level of expected sales units

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Consider a project with free cash flows in one year of $106,89 or $112,37, with each outcome being equally likely. The initial investment required for the project is $60,35, and the project's cost of capital is 0,20%. What is the NPV of this project?

Keuka Corporation is considering a project that costs $1 million and will produce benefits for 5 years. The first year cash inflow can be rather accurately estimated at $240,000, measured in today's dollars. If the actual first-through fifth-year cash flows are assumed to be the same size ($240,000), what would the NPV of the investment be if the appropriate discount rate is 15% ? Round to the nearest whole number. If the answer is negative, put your answer in parentheses. NPV = S

Consider a project with free cash flow in one year of $139,138 or $187,005, with either outcome being equally likely. The initial investment required for the project is $110,000, and the project's cost of capital is 23%. The risk-free interest rate is 7%. (Assume no taxes or distress costs.) a. What is the NPV of this project? b. Suppose that to raise the funds for the initial investment, the project is sold to investors as an all-equity firm. The equity holders will receive the cash flows of the project in one year. How much money can be raised in this way that is, what is the initial market value of the unlevered equity? c. Suppose the initial $110,000 is instead raised by borrowing at the risk-free interest rate. What are the cash flows of the levered equity, and what is its initial value according to M&M? a. What is the NPV of this project? The NPV is $ 22578. (Round to the nearest dollar.) b. Suppose that to raise the funds for the initial investment, the project is sold to…

You are evaluating a project that will cost $543,000​, but is expected to produce cash flows of $127,000 per year for 10 ​years, with the first cash flow in one year. Your cost of capital is 10.9% and your​ company's preferred payback period is three years or less. a. What is the payback period of this​ project? b. Should you take the project if you want to increase the value of the​ company?

Your company is considering a capital project that will require a net initial investment of $244,978. The project is expected to have a 7- year life and will generate an annual net cash inflow of $40,860. Using the present value tables, what is the internal rate of return? (Round answers to O decimal places, e.g. 25.) Click here to view the factor table. Internal Rate of Return %

A project that will provide annual cash flows of $2,600 for nine years costs $10,700 today? a. At a required return 12%, what is the NPV of the project? (DO NOT ROUND INTERMEDIATE CALCULATIONS AND ROUND YOUR ANSWER TO 2 DECIMAL PLACES) b. At a required return of 28%, what is the NPV of the project? (DO NOT ROUND INTERMEDIATE CALCULATIONS AND ROUND YOUR ANSWER TO 2 DECIMAL PLACES) c. At what discount rate would be indifferent between accepting the project and rejecting it? (DO NOT ROUND INTERMEDIATE CALCULATIONS AND ROUND YOUR ANSWER TO 2 DECIMAL PLACES) Could someone please help me solve this in excel?

You are evaluating a project that will cost $502,000, but is expected to produce cash flows of $127,000 per year for 10 years, with the first cash flow in one year. Your cost of capital is 10.7% and your company's preferred payback period is three years or less. a. What is the payback period of this project? b. Should you take the project if you want to increase the value of the company? a. What is the payback period of this project? The payback period is years. (Round to two decimal places.) b. Should you take the project if you want to increase the value of the company? (Select from the drop-down menus.) If you want to increase the value of the company you take the project since the NPV is will not will

A project that will provde annual cash flows of $3,050 for nine years costs $10,200 today. a. At a required return of 11 percent, what is the NPV of the project? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. At a required return of 27 percent, what is the NPV of the project? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. c. At what discount rate would you be indifferent between accepting the project and rejecting it? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. a. NPV b. NPV c. Discount rate %