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- Assume that an investment of 100,000 produces a net cash flow of 60,000 per year for two years. The discount factor for year 1 is 0.89 and for year 2 is 0.80. The NPV is a. 0 b. 6,800 c. 1,400 d. (4,000)Redbird Company is considering a project with an initial investment of $265,000 in new equipment that will yield annual net cash flows of $45,800 each year over its seven-year life. The companys minimum required rate of return is 8%. What is the internal rate of return? Should Redbird accept the project based on IRR?The following information regarding an investment project is available. Discount rate 7% Year Cash Flow 0 (£125,000) 1 £60,000 2 £50,000 3 £10,000 4 £10,000 5 £50,000 A). What is the Net Present Value of the Project? Choose one from the following: A. £56,076 B. £43,670 C. £125,000 D. £26,188
- 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. %A project will generate the following cash flows. If the required rate of return is 15%, what is the project’s net present value? Year Cash flow 0 –$50,000 1 $15,000 2 $16,000 3 $17,000 4 $18,000 5 $19,000 Select one: a. $16,790.47 b. $6,057.47 c. $3,460.47 d. $1,487.21 e. –$3,072.47Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$ 15,456 5,225 8,223 13,013 8,705 0 1 234 -$ 276,363 26,400 51,000 57,000 402,000 Whichever project you choose, if any, you require a 6 percent return on your investment. a. What is the payback period for Project A? Payback period b. What is the payback period for Project B? Payback period c. What is the discounted payback period for Project A? Discounted payback period
- A project yields the following set of cash flows. What is the internal rate of return of this project? Assume the required rate of return is 5%. оо O Year Cash Flows ($) 0 -9,250 12 1 1,500 2 1,300 3 2,500 4 2,600 567 2,600 2,600 2,600 a. 13.58% b. 14.80% C. 10.92% d. 12.29% e. 8.58%The following information regarding an investment project is available. Discount rate 7% Year Cash Flow 0 (£125,000) 1 £60,000 2 £50,000 3 £10,000 4 £10,000 5 £50,000 A). What is the IRR of the Project - (Hint: Use interpolation formula)? Choose one from the following: A. 9% B. 12% C. 16% D. 25%The table bellow shows the cash flow for an engineering project, if the reinvestment rate of return ɛ is 6% per year, the external rate of rate (EER) is : EOY Cash flow $ |-13000 4 -4000 5 to 10 6000
- A project has the following cash flows. What is the internal rate of return? Years Cash flow -$46.800 11.260 18.220 15.950 4. 13,560 O 9.75 percent O 10.28 percent O 10.60 percent O 10.67 percent O 11.23 percent 2 3.A project has the following cash flows. What is the payback period? Year Cash Flow 0 −$10,000 1 1,800 2 3,600 3 5,000 4 6,000The table bellow shows the cash flow for an engineering project, if the reinvestment rate of return e is 6% per year, the external rate of rate (EER) is EOY Cash flow $ 13000 14 2000 5 to 10 8000
