A project has annual cash flows of $5,000 for the next 10 years and then $9,000 each
Question:
A project has annual cash flows of $5,000 for the next 10 years and then $9,000 each year for the following 10 years. The IRR of this 20-year project is 8.52%. If the firm’s WACC is 8%, what is the project’s NPV?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 85% (7 reviews)
Because the IRR is the discount rate at which the NP...View the full answer
Answered By
Kainat Shabbir
i am an experienced qualified expert with a long record of success helping clients overcome specific difficulties in information technology, business and arts greatly increasing their confidence in these topics. i am providing professional services in following concerns research papers, term papers, dissertation writing, book reports, biography writing, proofreading, editing, article critique, book review, coursework, c++, java, bootstarp, database.
5.00+
184+ Reviews
255+ Question Solved
Related Book For
Fundamentals of Financial Management
ISBN: 978-1337395250
15th edition
Authors: Eugene F. Brigham, Joel F. Houston
Question Posted:
Students also viewed these Business questions
-
A project has annual cash flows of $7,500 for the next 10 years and then $10,000 each year for the following 10 years. The IRR of this 20-year project is 10.98%. If the firms WACC is 9%, what is the...
-
Garmen Technologies Inc. operates a small chain of specialty retail stores throughout the U.S. Southwest. The company markets technology-based consumer products both in its stores and over the...
-
Parnassus Corporation plans to invest $150 million in a new generator that will produce free cash flows of $20 million per year in perpetuity. The firm is all equity financed, with an equity cost of...
-
Elastic bands are attached to tuning fork 1 ( which was 2 5 6 Hz ) to reduce its frequency. It is sounded again with tuning fork 2 ( 2 5 5 Hz ) , making 1 2 beats in 6 . 0 s . What is the new...
-
a) What is Data Loss Prevention (DLP)? b) Are there some types of data that are too risky to collect? c) What is PII? Please give a couple examples of PII. d) What is data masking?
-
A and B are n x n matrices. Mark each statement True or False (T/F). Justify each answer. (T/F) det(A + B) = det A + det B.
-
For accounting purposes, how are liabilities defined?
-
The net income of Steinbach & Sons, a department store, decreased sharply during 2014. Mort Steinbach, manager of the store, anticipates the need for a bank loan in 2015. Late in 2014, Steinbach...
-
Question 3 10 points]; Write a PIC18 assembly program to add the numbers: 6, 7, and 8 and save the BCD result in PORTC.
-
You are an analyst with Perception Partners and have been asked to make pricing recommendations regarding the acquisition of Rose Garden Apartments. This project was built five years ago and contains...
-
A company has an 11% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows: a. What is each project?s NPV?b. What is each project?s IRR?c....
-
Project A costs $1,000, and its cash flows are the same in Years 1 through 10. Its IRR is 16%, and its WACC is 8%. What is the projects MIRR?
-
A new strain of H5N1 avian flu could emerge that would result in human-to-human transmission. a. Why is vaccine development not the highest priority right now? b. Once an epidemic has started,...
-
Alpha Majesty Development Ltd, a private real estate developer is constructing an integrated development project in Singapore. The project is designed by a renowned international architect and the...
-
How that you have completed both your SIS functional model and structural model, you are ready to complete your consulting job by creating the SIS behavioral model. Based on your SIS functional model...
-
When performing the work activity in the 'real world. Answer the questions and list implications for your learning program Task skills What organizational policies and procedures must learners...
-
Describe the types of costs associated with carrying inventory. How might the economic-order-quantity decision model help a company plan and control inventory?
-
As a Retail Travel Professional, you have booked your clients a 7night Tour Package for 2 adults at a Gross Price of $1404.00 plus $341.18 taxes based on double occupancy. If the Tour Operator pays...
-
For the spring-mass system shown in Figure P16-5, determine the mass displacement, velocity, and acceleration for five time steps using the central difference method. Let k = 2000 lb/ft and m = 2...
-
Why is it important to understand the macro-environment when making decisions about an international retail venture?
-
Define (a) Sensitivity analysis, (b) Scenario analysis, and (c) Simulation analysis. If GE was considering two projects (one for $500 million to develop a satellite communications system and the...
-
If you were the CFO of a company that had to decide on hundreds of potential projects every year, would you want to use sensitivity analysis and scenario analysis as described in the chapter or would...
-
Truman Industries is considering an expansion. The necessary equipment would be purchased for $9 million, and the expansion would require an additional $3 million investment in working capital. The...
-
8 . Given the following FX market information, calculate the annualized 3 0 day, 9 0 day, and 1 8 0 day forward discounts for the Canadian dollar. Spot: C$ 1 = $ 1 . 0 0 7 8 3 0 day forward: C$ 1 = $...
-
Consider the two mutually exclusive projects: TimeAB 0(4500)(4600) 125902630 220102025 314651600 Calculate and draw out and label the 5 points on the NPV profile of the two projects.(10 points)Which...
-
Capital Budgeting (20 points) Samson is considering an investment of $500,000 in a machine with a five-year life. The machine will be depreciated straight-line to zero over five years. The machine...
Study smarter with the SolutionInn App