Question
1.A project has the following cash flows. Find the payback period. Type in your answer as a number only, and round to the nearest hundredth.
1.A project has the following cash flows. Find the payback period. Type in your answer as a number only, and round to the nearest hundredth. For example, if the answer is 10.789 years, type 10.79.
| Year 0 | Year 1 | Year 2 | Year 3 | |
| Cash Flow | -$100 | $50 | $40 | $30 |
2. A project has the following cash flows. Risk-adjusted WACC is 10%. Find the discountedpayback period. Type in your answer as a number only, and round to the nearest hundredth. For example, if the answer is 10.789 years, type 10.79.
| Year 0 | Year 1 | Year 2 | Year 3 | |
| Cash Flow | -$100 | $50 | $40 | $30 |
3. A project has the following cash flows. This project is of average risk and the WACC is 10.7%. Find the NPV. Round your answer to the nearest cent.
| Year 0 | Year 1 | Year 2 | Year 3 | |
| Cash Flow | -$118 | $50 | $40 | $74 |
4. A project has the following cash flows. This project is of average risk and the WACC is 10%. Find the IRR. Input your answer as a decimal rounded to four places. For example, 20.75% should be input as 0.2075.
| Year 0 | Year 1 | Year 2 | Year 3 | |
| Cash Flow | -$100 | $50 | $40 | $30 |
5. A project has the following cash flows. This project is of average risk and the WACC is 9%. Find the NPV. Round your answer to two decimal places.
| Year 0 | Year 1 | Year 2 | Year 3 | |
| Cash Flow | -$92 | $50 | $40 | $9 |
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A Course In Derivative Securities
Authors: Kerry Back
2005th Edition
3540253734, 978-3540253730
