4. The following details are provided by Doppler Company:Initial investment$2,020,00012%Discount rateYearly cash flows1$210,000$414,000$414,000$414,000$210,000234Present Value of $1:10%11%12%13%0.8930.79710.9090.9010.8850.8260.8120.7833.0.7510.7310.7120.6930.6130.6590.5930.6360.56740.6830.6210.543Calculate the NPV of the project.

For cash Outflow The investment year will be considered as 0 year and Present value will be taken as…

4. The following details are provided by Doppler Company: Initial investment $2,020,000 12% Discount rate Yearly cash flows $210,000 $414,000 $414,000 $414,000 $210,000 1 4 Present Value of $1: 10% 11% 12% 13% 1 0.909 0.901 0.893 0.885 0.812 0.797 0.783 0.826 0.751 0.683 0.621 3. 0.731 0.712 0.693 0.659 0.593 0.636 0.567 0.613 0.543 4 Calculate the NPV of the project.

4. The following details are provided by Doppler Company: Initial investment $2,020,000 12% Discount rate Yearly cash flows $210,000 $414,000 $414,000 $414,000 $210,000 1 4 Present Value of $1: 10% 11% 12% 13% 1 0.909 0.901 0.893 0.885 0.812 0.797 0.783 0.826 0.751 0.683 0.621 3. 0.731 0.712 0.693 0.659 0.593 0.636 0.567 0.613 0.543 4 Calculate the NPV of the project.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Consider the following cash flows: Year Cash Flow 0123 $19,400 10,400 9,320 6,900 What is the IRR of the above set of cash flows? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Internal rate of return 96
Consider the following cash flow stream 0 -$500 (11% 22% 27% The internal rate of return is closest to ○ 1 2 $200 $300 18% 32% 3 $400
What is the net present value of the following set of cash flows at a discount rate of 5 percent? At 15percent? Multiple Choice $1, 018.47; -$628.30 $1,620.17: $2, 618.99 $1,620.17: $525.13 $722.09; - S1,708.16 $722.09: $418.05
Determine the ERR (External rate of return) of the cash flows if external rate (e) is given as %18. Cash Flow Year 0 1 2 3 4 5 6 Select one: a.0.3073 b.0.2988 c.0.2565 d.0.2638 e.0.3491 f.0.2783 -3000 2000 4000 -1000 3000 4000 -5000 9000
Information on four investment proposals is given below:Investment ProposalA B C DInvestment required ........................ $(90,000) $(100,000) $(70,000) $(120,000)Present value of cash inflows ......... 126,000 138,000 105,000 160,000Net present value ............................ $ 36,000 $ 38,000 $ 35,000 $ 40,000Life of the project ............................ 5 years 7 years 6 years 6 yearsRequired:1. Compute the project profitability index for each investment proposal.2. Rank the proposals in terms of preference.
2. Compute the IRR for the investment represented by the following cash flow table: Year 1 4 6. 7. Cash Flow -1200 +350 +300 +250 +200 +150 +100 +50 (in $1000's)
Year Cash Flow $275.000 1 $35.00 2 S65,000 36 S25.000 $13500 $185.000 9-20 $245,000 Given the following cash flows and if MARR-24%? Ans xx What is the Simple Payback Period? Ans XX What is the Discounted Payback Penod? 01 7 8.
) Assuming a 9% cost of capital, find the modified internal rate of return for the following cash flows: a. 19.78% b. 6.95% c. 13.64% d. 7.86% Year Cash Flow 0 1 2 3 -$175 $167 $240 -$120
Determine the ERR (External rate of return) of the cash flows if external rate (e) is given as %19. Year Cash Flow 0 -3000 1 2000 2 4000 3 -1000 4 3000 5 4000 6 -5000 7 9000 Select one: a. 0.2988 b. 0.2638 c. 0.2565 d. 0.3073 e. 0.2783 f. 0.3491
t the net cash flows below, what is the value of x if the rate of return is 1067 (select the losest answer) Net Cash Flow -13,000 1. -29,000 -25,000 4 -8000 a. $76,148 b. $87,166 c. $88,467 d. $92,947 ohine This machine will have an estimated 23
What is the IRR of the following set of cash flows? Year Cash Flow -$ 0 10,512 123 7,000 4,800 3,300 Multiple Choice 22.7% 25.09% 24.38% 23.9% 23.42%
Consider the following timeline: Date Cash flow $100 OA. $627 OB. $482 OC. $600 OD. $964 2 $200 3 $300 If the current market rate of interest is 10%, then the present value (PV) of this timeline as of year 0 is closest to ICCESS