Compute the NPV for Project X with the cash flows shown as follows if the appropriate cost of capital is 10 percent. Time 0 1 2 3 4 Cash Flow –$ 100,000 $ 36,000 $ 200,000 $ 210,000 $ 10,000
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Compute the NPV for Project X with the cash flows shown as follows if the appropriate cost of capital is 10 percent.
| Time | 0 | 1 | 2 | 3 | 4 | |||||||||||||
| Cash Flow | –$ | 100,000 | $ | 36,000 | $ | 200,000 | $ | 210,000 | $ | 10,000 |
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- Compute the NPV statistic for Project X given the following cash flows if the appropriate cost of capital is 12 percent. Project X Time 2 4 Cash Flow 15,000 $6,000 $10,000 $12,000 1,000Compute the NPV for Project X with the cash flows shown as follows if the appropriate cost of capital is 10% TIme 0 1 2 3 4 Cash flows -$100,000 $36,000 $200,000 $210,000 $10,000Compute the NPV for Project X with the cash flows shown as follows if the appropriate cost of capital is 9 percent. Time 0 1 2 3 4 5 Cash Flow −$ 5,000 $ 1,000 $ 2,000 $ 2,000 $ 500 $ 500 Multiple Choice −$2,013.18 −$175.66 $486.29 $9,824.34
- Compute the NPV statistic for Project Y given the following cash flows if the appropriate cost of capital is 10 percent. Project Y Time 1 2 3 4 Cash Flow 50,000 $7,000 $20,000 $20,000 $20,000 $10,000Compute the NPV statistic for Project U given the following cash flows if the appropriate cost of capital is 9 percent. Project U Time 0 1 2 3 4 5 Cash Flow –$ 1,000 $ 350 $ 1,480 –$ 520 $ 400 –$ 100Compute the NPV statistic for Project X given the following cash flows if the appropriate cost of capital is 12 percent. Project X Time 0 1 2 3 4 Cash Flow –$ 15,000 $ 6,000 $ 10,000 $ 12,000 –$ 1,000
- Compute the NPV for Project X with the cash flows shown below if the appropriate cost of capital is 10 percent. Time: 0 1 2 3 4 5 Cash flow: -125 -125 0 200 175 150 Multiple Choice $162.01 $124.29 $112.99 $362.93Compute the NPV for Project X and accept or reject the project with the cash flows shown below if the appropriate cost of capital is 10 percent. Time: 1 2 4 Cash flow: -150 -150 250 225 200Suppose 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 30
- Problem 1.a Given the following cash flows for Project M: C0 = -1,000, C1 = +200, C2 = +700, C3 = +698 calculate the IRR for the project. Problem 1.b Project X has the following cash flows: C0 = +2,000, C1 = -1,150, and C2 = -1,150. If the IRR of the project is 9.85% and if the cost of capital is 12%, would you accept or reject? Problem 1.c Story Company is investing in a giant crane. It is expected to cost $6.0 million in initial investment, and it is expected to generate an end-of-year after-tax cash flow of $3.0 million each year for three years. Calculate the NPV at 12%. Would you suggest company to invest? Problem 1.d The real interest rate is 3.0% and the inflation rate is 5.0%. What is the nominal interest rate? Problem 1.e Your firm expects to receive a cash flow in two years of $10,816 in nominal terms. If the real rate of interest is 2% and the inflation rate is 4%, what is the real cash flow for year 2?Consider a project with the following cash flows: Time 0 1 2 3 4 5 CF -$5,000 $5,000 $4,000 $2,000 $1,000 -$6,000 Please round your answer to two decimal places. (e.g. 12345.67 for $12,345.67; 12.34 for 12.34%) a) What is the NPV of this project if the cost of capital is 10%? b) To calculate the MIRR, find the modified cash flow at year 0 c) What is the MIRR of this project?Compute the NPV for Project X with the cash flows shown as follows if the appropriate cost of capital is 9 percent. Time: 1 2 3. 4 Cash flow: -1,000 -75 100 100 2,000 Multiple Choice $486.29 -$639.96 $392.44 $360.04 MacBook Air