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- 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. –$3,072.47Viva's Junkshop is considering a project that has the following cash flow and WACC data. What is the project's NPV? WACC: 10.00% Year 0 1 2 3 Cash flows -$1,050 $450 $460 $470 Choices are the ff: A.$ 92.37 B. $96.99 C. $101.84 D. $112.28 E. $106.93Your division is considering a project with the following net cash flows (in millions): Period 0 1 2 3 ProjectA -$25 $5 $10 $17 What is the projects NPV assuming the WACC is 0.14?
- Viva’s Junkshop is considering a project that has the following cash flow and WACC data. What is the project's NPV? WACC: 10.00% Year 0 1 2 3 Cash flows −$1,050 $450 $460 $470 $ 92.37 $101.84 $ 96.99 $112.28 $106.93Consider the following cash flows:Year Cash Flow0 -$8,0001 $3,0002 $3,6003 $2,7004 $2,5005 $2,1006 $1,600 1. NPV. Using a 10% required rate of return, calculate the NPV for this project. Should it be accepted or rejected? 2. PI. Calculate the Profitability Index (PI) for this project. Should it be accepted or rejected?Viva's Junkshop is considering a project that has the following cash flow and WACC data. What is theproject's NPV? WACC: 10.00% Year. 0 1 2 3 Cash flows. -$1.050 $450 $460 $470 $112.28 $92.37 $6.99 $106.93 $101.84
- Darius Inc. is considering a project that has the following cash flow data. Given WACC = 10%, what is the project's NPV? Year 0 = $-100,000 Year 1 = $45,000 Year 2 = $10,000 Year 3 = $0 Year 4 = $50,000 Year 5 = $15,000 Question 2Answer a. $0 b. $2,321.10 c. $1.20 d. $-7,361.95 e. $-1,230.18 f. $-524.23Suppose a project has the following cash flows. What is the NPV if the cost of the project is $105,000 and the required return is 9.75%? Year Cash Flow $28.000 32,000 3 36,000 4 39,000 O$6,000 O $20,678 $1,193 $27,335 O $30,000 Page 16 of 30You must analyze two projects, X and Y. Each project costs $1,000, and the firm’s WACC is 10%. The expected net cash flows are as follows. What is the project Y’s NPV? Year: 0 1 2 3 4 Project X: -$1,000 $500 $400 $300 $100 Project Y: -$1,000 $100 $300 $400 $675 Which answers? $100.4 $1,004 $580 $4,750
- Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$ 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 periodRefer to two projects with the following cash flows: Project A -$100 Year Project B -$100 1 40 50 2 40 50 3 40 50 4 40 If the opportunity cost of capital is 12%, what is the profitability index for each project? (Round your answers to 4 decimal places.) Project A Project B Does the profitability index rank the projects A and B correctly? |(Click to select) ved Your company has a project available with the following cash flows: Year Cash Flow 0 -$80,900 12345 21,600 25,200 31,000 26,100 20,000 If the required return is 15 percent, should the project be accepted based on the IRR?
