A project has the following cash flows: Year 0 £10,500 initial investment Year 1 4,486 cash inflow Year 2 3,915 cash inflow Year 3 3,206 cash inflow Year 4 2,677 cash inflow What is the internal rate of return of this project?
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A project has the following cash flows:
Year 0 £10,500 initial investment
Year 1 4,486
Year 2 3,915 cash inflow
Year 3 3,206 cash inflow
Year 4 2,677 cash inflow
What is the
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- There is a project with the following cash flows : Year Cash Flow 0 −$ 29,300 1 8,600 2 8,500 3 7,900 4 6,700 What is the payback period?Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$ 15,456 5,225 8,223 13,013 8,705 0 1 234 -$ 276,363 26,400 51,000 57,000 402,000 Whichever project you choose, if any, you require a 6 percent return on your investment. a. What is the payback period for Project A? Payback period b. What is the payback period for Project B? Payback period c. What is the discounted payback period for Project A? Discounted payback periodA project has the following cash flows below. What is the internal rate of return of this project? Year 0 £10,500 initial investment Year 1 £4,486 cash inflow Year 2 £3,915 cash inflow Year 3 £3,206 cash inflow Year 4 £2,677 cash inflow 11% C. 15% 13% D. 17% Please show the solution
- A project has the following cash flows. What is the internal rate of return? Years Cash flow -$46.800 11.260 18.220 15.950 4. 13,560 O 9.75 percent O 10.28 percent O 10.60 percent O 10.67 percent O 11.23 percent 2 3.A project has the following cash flows set out below. What is the profitability index of this project if the relevant discount rate is 2 percent? Enter your final answer to two decimal places. Year Cash flow 0 -1,745 1 537 2 2,066 3 3,912A project has the following cash flows. Year 0 1 2 3 4 Amount -200 950 -850 75 12 You are a financial analyst, and note the sequence of cash flows. What is the internal rate of return for this project? Round your answer to two decimal places.
- What is the net present value of a project with the following cash flows if the required rate of return is 12 percent? YEAR CASH FLOW 0 -42,398 1 13,407 2 21,219 3 17,800Finance Here are the expected cash flows for three projects: Cash Flows (dollars) 1 2 0 5,800 - 1,800 + 1,200 + 1,200 0 + 1,800 - 5,800 + 1,200 + 1,200 Project Year: A B с 3 + 3,400 + 2,400 + 3,400 4 0 + 3,400 + 5,400 a. What is the payback period on each of the projects? b. If you use the payback rule with a cutoff period of 2 years, which projects will you accept? c. If you use a cutoff period of 3 years, which projects will you accept? d-1. If the opportunity cost of capital is 10%, calculate the NPV for projects A, B, and C. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.) d-2. Which projects have positive NPVs? e. "Payback gives too much weight to cash flows that occur after the cutoff date." True or false? a. Payback period b. If you use the payback rule with a cutoff period of 2 years, which projects will you accept? C. If you use a cutoff period of 3 years, which projects will you accept?…You've estimated the following cash flows (in $) for two projects: A B C 1 Year Project A Project B 2 0 -71 -254 3 1 15 50 4 2 21 73 5 3 29 82 6 4 25.2 113.24 The required return is 7% for both projects. 1. What is the IRR for project A? 2. What is the IRR for project B? 3. What is the NPV of project A? 4. What is the NPV of project B? 5. If the projects are mutually exclusive, which project should you choose? Project B, based on the NPV Project A, based on the IRR Project A, based on the NPV Project B, based on the IRR
- A project yields the following set of cash flows. What is the internal rate of return of this project? Assume the required rate of return is 5%. оо O Year Cash Flows ($) 0 -9,250 12 1 1,500 2 1,300 3 2,500 4 2,600 567 2,600 2,600 2,600 a. 13.58% b. 14.80% C. 10.92% d. 12.29% e. 8.58%A project has the following cash flows: Year Cash Flows 0 $ 128,200 12 1 2 3 4 49,400 63,800 51,600 28,100 The required return is 8.7 percent. What is the profitability index for this project? Multiple Choice 1.142 1.003 .803 1.038What is the internal rate of return for a project with the following cash flows? Round off the answer to whole number(s). Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 $ (54,670,972.34) $ 13,400,000.00 $ 22,340,564.00 $ 28,349,000.00 $ 33,450,769.00 $ 37,398,000.00
