Question
1.A project with a cost of $95,000 is expected to produce benefits of $16,000 per year for 10 years. Calculate the project's payback period, net
1.A project with a cost of $95,000 is expected to produce benefits of $16,000 per year for 10 years. Calculate the project's payback period, net present value (NPV), profitability index (PI), and internal rate of return (IRR). Assume a cost of capital of 9%
2.What is the payback period of a project with an initial investment of $14,300 and annual cash flows of $1,185?
3.Project L has a cost of $38,000. Its expected net cash inflows are $50,000 per year for 8 years. What is the project's payback period? If the cost of capital is 6%, what are the project's net present value (NPV) and profitability index (PI)? What is the project's internal rate of return (IRR)?
4.Suppose you're presented with a proposal for a project that costs $4,600 and will bring in $20,400 the first year. The next year, you'll have to pay out $15,900. With a cost of capital of 14%, calculate the net present value (NPV) for this project.
5.You are considering building a shopping mall. The initial investment is $1.49 million. The cash flows are $480,000 for year 1, $290,000 for year 2, $170,000 for year 3, and $140,000 for year 4. What are the net present value (NPV) and profitability index (PI) of the project if the cost of capital is 12%? Compute the internal rate of return (IRR) for the project.
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1 Project with Cost of 95000 and Benefits of 16000 per year for 10 years Payback Period The payback period is the time it takes for the projects cumulative cash flows to equal or exceed the initial in...Get Instant Access to Expert-Tailored Solutions
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