Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1 pts Question 1 Consider an investment project that costs $25,000 today, and will create the following cash flows received: $10,000 in one year $8,000

image text in transcribed
image text in transcribed
image text in transcribed
1 pts Question 1 Consider an investment project that costs $25,000 today, and will create the following cash flows received: $10,000 in one year $8,000 in two years, $8,000 in three years. $4,000 in four years. The interest rate is 9%. Use this information to answer questions 1 - 4. What is the net present value of this project? -81.08 -5,000.00 81.08 1.843.48 Question 2 1 pts What is the payback period for this project? 3 years This project does pay the investment back. 3.7525 years 2.875 years Question 3 1 pts If you create a timeline to determine the discounted payback period, what dollar amounts are used for each year? $9,174 in one year, $6,733 in two years. $6.177 in three years, and $2,833 in four years. $10,900 in one year. $9.505 in two years, $10,360 in three years, and $5,646 in four years. $10,000 in one year, $8,000 in two years, $8,000 in three years, and $4,000 in four years. $8.434 in one year, $6,853 in two years, $5,853 in three years, and $1.258 in four years. oc Question 4 1 pt What is the internal rate of return for this project? -5.63% 8.83% 4.21% the IRR cannot be calculated for these cash flows

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

Step: 3

blur-text-image

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

Trade Show Process How To Maximize Your Trade Show Experience

Authors: Gayle Annett

1st Edition

979-8448258879

More Books

Students also viewed these Finance questions

Question

A. Rewrite the following Program by using for loop statement

Answered: 1 week ago

Question

=+5. What is the AIDA model, and what are its limitations? [LO-2]

Answered: 1 week ago