Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

1. Project x-ray is being considered for an expansion of current capabilities of the company given below is the necessary financial information to solve the

1. Project x-ray is being considered for an expansion of current capabilities of the company given below is the necessary financial information to solve the problem.

The initial investment is: $ 12,186

After Tax net cash inflows: $2,200

Discount Rate: 8%

Time of project 8 years

No Salvage Value is Projected

What is the net present value (NPV) of the investment?

should the project be considered? Justify your answer.

1B. Dalkey inc is considered an investment.

Given below Is the necessary financial information to solve the problem.

The initial investment is $94,678

yearly after tax net cash inflows. $14,110

time of project 9 years

no salvage value is projected

What is the internal rate of return (IRR) of the investment?

if the requires rate of return is 14% should this project be considered? Justify your answer.

If the required rate of return is 6% should this project be considered? Justify your answer.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Answer Project XRay Analysis Net Present Value NPV We can use the NPV formula to determine the projects profitability NPV Initial Investment PVCash In... blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Document Format ( 2 attachments)

PDF file Icon
663e9f076d83d_953913.pdf

180 KBs PDF File

Word file Icon
663e9f076d83d_953913.docx

120 KBs Word File

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Entrepreneurship

Authors: Andrew Zacharakis, William D Bygrave

5th Edition

1119563097, 9781119563099

More Books

Students explore these related Finance questions