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#3 A project that provides annual cash flows of $16,900.00 for eight years costs $75,000.00 today. What is the NPV for the project is the
#3 | |||||
A project that provides annual cash flows of | $16,900.00 | for eight years costs | $75,000.00 | today. | |
What is the NPV for the project is the required rate of return is | 7.00% | ||||
Periods | |||||
PMT | |||||
Required Return | |||||
PVIF | |||||
PVIFA | |||||
PV | |||||
Cost | |||||
NPV | |||||
NPV = | $ 24,419.94 | ||||
NPV = | $ 27,619.54 | ||||
NPV= | $27,619.54 | ||||
NPV = | $ 26,914.94 | ||||
NPV = | $ 25,914.94 | ||||
#4 | |||||
What is the IRR of the following set of cash flows? | |||||
Year | 0 | 1 | 2 | 3 | |
Cash Flows | -$16,600.00 | $7,300.00 | $8,600.00 | $7,100.00 | |
PVIF | |||||
NPV | |||||
IRR | |||||
IRR = | 16.32% | ||||
IRR = | 15.32% | ||||
IRR = | 18.32% | ||||
I | |||||
i | |||||
IRR= | 19.32% | ||||
#5 | |||||
A project has the following cash flows: | |||||
Year | 0 | 1 | 2 | 3 | |
Cash Flows | -$16,900.00 | $10,500.00 | $10,500.00 | $10,500.00 | |
WACC | 28.00% | 28.00% | 28.00% | 28.00% | |
What is the MIRR? | |||||
Year | 0 | 1 | 2 | 3 | |
Cash Flows | -$16,900.00 | $10,500.00 | $10,500.00 | $10,500.00 | |
WACC | 28.00% | 28.00% | 28.00% | 28.00% | |
FVIF | |||||
FVIFA | |||||
FV | |||||
PVIF | |||||
PV | |||||
Cost | |||||
NPV | |||||
MIRR | |||||
MIRR = | 35.35% | ||||
MIRR = | 34.53% | ||||
MIRR = | 33.54% | ||||
MIRR = | 43.35% |
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