Question
A) Given the following end of year free-cash-flows (FCF), what is the net-present value (NPV) of this investment opportunity. Assume that the projects WACC is
A) Given the following end of year free-cash-flows (FCF), what is the net-present value (NPV) of this investment opportunity. Assume that the projects WACC is 10%. Round your final answer to two decimals.
B) Given the following end of year free-cash-flows (FCF), what is the Internal Rate of Return (IRR) of this investment opportunity. Enter your answer as a percent; do not include the % sign. Round your final answer to two decimals.
C) Given the following free-cash-flows (FCF), what is the payback period of this investment opportunity. Assume that the free-cash-flows arrive uniformly throughout the year. Round your final answer to two decimals.
| Timeline | 0 | 1 | 2 | 3 | 4 |
|---|---|---|---|---|---|
| FCF | -1000 | 300 | 400 | 500 | 700 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Finance Applications And Theory
Authors: Marcia Cornett, Troy Adair, John Nofsinger
5th Edition
1260013987, 9781260013986
