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- The expected cash flows of a project are as follows. Year Cash Flow -100000, 20,000 ,30,000 40,000 ,50,000 30,000 The cost of capital is 12 per cent. Calculate the following and evaluate the project under each methods a. net present value b. Profitability Index c. Internal rate of Return d. Modified internal rate of Return and Payback period. calculate the net present value of the following: Project A requires an initial investment of $1,000 and is expected to generate cash flows of $400 per year for 3 yearsA project has an initial cost of $50 000, net annual cash inflows of $20 000, and a $2 000 salvage value after five years. Which of the following gives the project's approximate external rate of return (i*) if MARR=10 percent?
- A cash flow sequence has a receipt of $20,000 today, followed by a disbursement of $17,000 at the end of this year and again next year, and then a receipt of $13,100 three years from now. The MARR is 6 percent. a. What is the ERR for this set of cash flows? b. What is the approximate ERR for this set of cash flows? c. Would a project with these cash flows be a good investment? a. The ERR is%. (Round to two decimal places as needed.)The expected cash flows of a project are as follows. Year Cash Flow -100000, 20,000 ,30,000 40,000 ,50,000 30,000 calculate the modified internal rate of return and payback periodAn Investment project provides the cash flow inflows of $615 per year for 8 years. a) What is the project payback period if the initial cost is $1,750? X years. b) What is the project payback period if the initial cost is $3,400? X years. c) WHat is the project payback period if the initial cost is $5,100 X years.
- Calculate the capitalized cost of a project that has an initial cost of $300,000 And additional investment cost of $100,000 after ten years. The annual operating cost will be $10,000 for the first four years and $16,000 after that. It is expected that the recurring major rework costs of $30,000 every 12 years with interest rate of 6% per year. Draw cash flow diagramA project has an initial cost of $40,000, expected net cash inflows of $9,000per year for 7 years, and a cost of capital of 11%. What is the project’s NPV?(Hint: Begin by constructing a time line.)A project has an initial cost of $75,000, expected net cash inflows of $12,000 per year for 12 years, and a cost of capital of 10%. What is the project's NPV?
- Cash flows from a new project are expected to be $4,000, $5,000, and $3,000 over the next 3 years, respectively. Assuming an initial cost of $10,000 and a required return of 9%, what is the project's NPV?Question 3: A project requires an immediate investment of $150,000 and another maintenance expenditure of $30,000every two years starting two years from now. What is the minimum annual income the project should generate starting one year from now for 4 years to satisfy a minimum attractive rate of return (MARR) of 12%? (Provide a cash flow diagram).(a) A project requires an initial investment of RM100,000 and is expected to generate cash flows of RM30,000 per year for the next five years. The discount rate is 10%. Calculate the Net Present Value (NPV) of the project. (b) Describe factors and variables that are taken into consideration when calculating the Net Present Value of a project.