You are considering a project with an initial cost of $59,700 and annual cash inflows of $10,905 in perpetuity. What discount rate, when applied to this project, will result in a profitability index of 1.00? Options 17.35% 17.81% 18.27% 18.72% 19.18%
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You are considering a project with an initial cost of $59,700 and annual
Options
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17.35% |
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17.81% |
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18.27% |
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18.72% |
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19.18% |
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- You are considering a project that costs $30 and has expected cash flows of $11.00, $12.10, and $13.31 over the next three years. If the appropriate discount rate for the project's cash flows is 10%, what is the net present value of this project? Select one: a. $19.79 b. $64.10 c. The NPV is negative d. $0.00 e. $0.71Consider a project with the following cash flows: Year Cash Flow - 8000 1 3200 2 3200 3 3200 4 3200 Assume the appropriate discount rate for this project is 14%. The profitability index for this project is closest to: O A. 0.66 O B. 0.18 O C. 0.25 O D. 0.17You are considering a project that costs OMR600 and has expected cash flows of OMR224, OMR250.88 and OMR280.99 over the next three years. If the appropriate discount rate for the project's cash flows is 12%, what is the net present value of this project? Select one: O a. The NPV is negative O b. OMR 0.00 O c. OMR 9.34 O d. OMR84.75 O e. OMR49.34
- You are considering an investment project with the cash flows of -300 (the initial cash flow), 700 (cash flow at year 1), -200 (cash flow at year 2). Given the discount rate of 10%, compute the Modified Internal Rate of Return (MIRR) using the discounting approach. 50.44% 10.72% O 28.64% O 37.84%A new project will have an intial cost of $14,000. Cash flows from the project are expected to be $-4,000, $6,000, $8,000, and $12,000 over the next 4 years, respectively. Assuming a discount rate of 12%, what is the project's IRR? Question 5 options: 12.61% 13.14% 13.66% 13.93% 13.40%At a discount rate of 8% the Net Present Value (NPV) of a project is 65 million. At a discount rate of 11% the NPV of the project is 27 million. What is the Internal Rate of Return (IRR) (correct to one decimal place) using linear extrapolation? A. 13,9% B. 13,1% C. 12,9% D. 12,1% And explain this question Which of the following options could explain an adverse sales price variance? A. An unplanned summer sale had been used to increase sales volumes B. The government raised the rate of value added tax in the budget C. Cost inflation had been higher than expected which had to be passed on to customers in order to maintain margins D. Discounts to customers had been withdrawn
- You are considering a project with an initial cost of $8245 and a required return of 11.6%. What is the discounted payback if the expected cash flows are $3148, $3429, $2731, $3048, and $3930 respectively over the next 5 years? a. 3.66 years b. 3.66 years c. 3.36 years ✔ d. 2.96 years e. 2.98 yearsCalculate the net present value of the following project for discount rates of 10,20 and 40 percent. Based on the NPVs you obtain, under which discount rates do you accept this project? Show your calculations. Cash Flows ($) Year 1 -7000 Year 2 4000 Year 3 19,000 NPV formula: NPV=sum_(t=0)^(n)(EATCF)/((1+k)^(t)) dution:-Find the profitability index of a project with the following cash flows using a discount rate of 4%: Period 0: -1000 Period 1: 793 Period 2: 391 Period 3: 204 Round your answer to the nearest one-hundredth.
- You are considering an investment project with the cash flows of -300 (the initial cash flow), 800 (cash flow at year 1), -200 (cash flow at year 2). Given the discount rate of 10%, compute the Modified Internal Rate of Return (MIRR) using the discountingapproach. 19.72% 71.94% 37.52% 50.55%You are given the following cash flow information for a project. Given this information, and assuming that the correct risk-adjusted discount rate (WACC) to use is 14 percent, while the firm's true reinvestment rate is 23 percent, determine the modified net present value (MNPV) for this project. Year 0 1 2 3 4 5 O $20,408 O $22,162 O $21.277 $21,728 O$20,883 Cash Flow -$20,000.00 $16,000.00 $10,000.00 $15,000.00 $16,000.00 $17,000.00Consider two mutually exclusive projects with the following expected cash flows and a required rate of return of 12% Cash Flows Year Project A Project B 0 -75,000 -100,000 1 60,000 60,000 2 30,000 50,000 3 30,000 60,000 (a) If you apply the discounted payback criterion, which investment will you choose? Why? (b) If you apply the NPV criterion, which investment will you choose? Why? (c) Based on your answers in (a) and (b), which project will you finally choose? Why ? (i.e clearly explain the strengths and the weaknesses of each method therefore the reason(s) for choosing the project based on the chosen method)