You are a consultant to a large manufacturing corporation considering a project with the following net after-tax cash flows (in millions of dollars): Years from Now 0 1 to 10 After-Tax CF -$ 38 $ 12 The project's beta is 1.4. Assuming rf = 6% and E(rm) Required: = 16% a. What is the net present value of the project? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Net present value million b. What is the highest possible beta estimate for the project before its NPV becomes negative? (Do not round intermediate calculations. Round your answer to 3 decimal places.) Highest possible beta value

Q3. norman inc. is considering the following project with expected future after tax cash flows shown in the following table. You dont know the projects initial cost but you do know the projects conventional payback period is 2.5 years. Assume cost of capital is 12%. Year1 12,000 Year 2 10,000 Year 3 6000 Year 4 5000 a). Calculate NPV of the project b). Would you recommend the company to accept or reject the project on the basis of NPV? c). How high can the discount rate be before you reject the project based on NPV? Give your answe correct to 2 decimal places.

A project has an initial cost of $65,000, expected net cash inflows of $12,000 per year for 8 years, and a cost of capital of 8%. What is the project's NPV? (Hint:Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to the nearest cent.

Assume a company is going to make an investment of $300,000 in a machine and the following are the cash flows that two different products would bring in years one through four. The company's required rate of return is 12%. What is the NPV for Option A?  What is the NPV for Option B?  What is the IRR for Option A?  What is the IRR for Option B?  PLEASE NOTE #1: The dollar amounts will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67). Round your IRR answers, in percentage format, to two decimal places (i.e. 12.34%).  Given the above answers, which project should the company invest in? Project  . PLEASE NOTE #2: Your answer is either "A" or "B" - capital letter, no quotes.

You are evaluating purchasing the rights to a project that will generate after tax expected operating cash flows of $91k at the end of each of the next five years, plus an additional $1,000k non-operating terminal period cash flow at the end of the fifth year. You can purchase this project for $531k. If your firm's cost of capital (aka required rate of return) is 14.3%, what is the NPV of this project? Note: All dollar values are given in units of $1k = $1000. Provide your answer in units of $1000, thus, $15000 = 15k and thus you should enter 15 for your answer.

Ragubhai

Novak Company is contemplating an investment costing $168,810. The investment will have a life of 8 years with no salvage value and will produce annual cash flows of $30,500. Click here to view PV tables. What is the approximate internal rate of return associated with this investment? (Use the above table.) (Round answer to O decimal places, e.g. 15%) Internal rate of return. %6

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A project that costs $2,300 to install will provide annual cash flows of $730 for each of the next 5 years. a. Calculate the NPV if the opportunity cost of capital is 12%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) NPV b. Is this project worth pursuing? Yes O No c. What is the project's internal rate of return IRR? (Do not round intermediate calculations. Round your answer to 2 decimal places.) %24

You are trying to value the following project for your company. You know that the project will generate free cash flows in perpetuity that will grow at a constant annual rate of 1.5% after year 3. The applicable interest rate for this project is 7.5%. What is the NPV of this project? Express your result in $-millions and round to two decimals (do not include the $-symbol in your answer). If you calculate a negative NPV enter a negative number. Year Free Cash Flows Free Cash Flow Forecasts (in $-millions) 0 -130 Year 1 -1 2 3 24 37