Suppose you are considering a project has an initial cost of $500 that has an ongoing benefit of $250. Further, there is an ongoing cost that is equal to $90, which increases by 10% each year (compounding). Assume the project lasts 6 years. If the appropriate discount rate is 6%. Calculate: a) the Net Present Value = $Blank 1 b) the Benefit Cost Ratio = Blank 2 c) should the project be accepted or rejected? Explain your answer using the information from part a) and b). Answer =Blank 3 (accept/reject) Provide your answers to two decimal places. Do not include any commas (,) "$" or "%" in your answers. Ensure you show all your working in your spreadsheet.

a) Calculate the payback period for each project. The maximum allowable payback period setby the company for all projects is 3 years. b) Calculate the net present value (NPV) for each project c) Calculate the profitability index (PI) for each project  d) Calculate the internal rate of return (IRR) for each project. e) Based on the answer in (a) – (d), explain briefly which project should be accepted. f) If the project is independent project, how would your answer change in part (e)     Note: I need only e,f no question answer. only e and f

a) Calculate the payback period for each project. The maximum allowable payback period setby the company for all projects is 3 years. b) Calculate the net present value (NPV) for each project c) Calculate the profitability index (PI) for each project  d) Calculate the internal rate of return (IRR) for each project. e) Based on the answer in (a) – (d), explain briefly which project should be accepted. f) If the project is independent project, how would your answer change in part (e)     Note: 1. I need only e,f no question answer. only e and f  2. No need excel formula

Assume that it costs $1,000 to start a project.  If the project will give $400 profit in the first year, $500 in the second year and $300 in the third year. find the payback period.  Now assume that the interest rate is 10%, find the net present value (NPV) and the profitability index (PI) for this project

Perform a financial analysis for a project using the format below. Assume the projected costs and benefits for this project are spread over four years as follows: estimated costs are $100,00 in year 1 and $25,000 each year 2, 4, and 4. (hint: just change the years in the template file from 0,1,2,3, and 4. This discount factors will automatically be recalculated). Estimated benefits are $0 in Year 1 and $80,000 each years 2,3, and 4. Use an 8% discount rate. Use the business case financials template provided on the companion web site to calculate and clearly display the NPV, ROI, and year in which payback occurs. In addition, explain whether you would recommend  investing in this project based on your financial analysis.

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. $0.71

When comparing two projects with different lives, why do you compute an annuity with an equivalent present value (PV) to the net present value (NPV)? A. so that the projects can be compared on their cost or value created per year B. to reduce the danger that changes in the estimate of the discount rate will lead to choosing the project with a shorter time frame C. so that you can see which project has the greatest net present value (NPV) D. to avoid complications arising from alternating cash inflows and outflows O E. to ensure that cash flows from the project with a longer life that occur after the project with the shorter life has ended are considered

You are evaluating a project that costs $75,000 today. The project has an inflow of $ 155,000 in one year and an outflow of $65,000 in two years. What are the IRRs for the project? What discount rate results in the maximum NPV for this project? How can you determine that this is the maximum NPV?

You are considering a project that requires a $1000 investment today and returns $550 at the end of the first year and $726 at the end of the second year. If your discount rate is 10%, then the Net Present Value (NPV) of the investment is $ type your answer... In this case, the Internal Rate of Return is choose your answer... than 10%.

Answer the following:   1 What is the payback period on each of the above projects? 2 Given that you wish to use the payback rule with a cutoff period of two years, which projects would you accept? Why? 3 If you use a cutoff period of three years, which projects would you accept? Why?