Question
A project has an initial cost of $36,075, expected net cash inflows of $14,000 per year for 7 years, and a cost of capital of
A project has an initial cost of $36,075, expected net cash inflows of $14,000 per year for 7 years, and a cost of capital of 10%. What is the project's MIRR? Do not round intermediate calculations. Round your answer to two decimal places. Answer = _____________________
A project has an initial cost of $48,675, expected net cash inflows of $14,000 per year for 10 years, and a cost of capital of 13%. What is the project's PI? Do not round your intermediate calculations. Round your answer to two decimal places. Answer = ______________________
A project has an initial cost of $56,425, expected net cash inflows of $13,000 per year for 9 years, and a cost of capital of 12%. What is the project's payback period? Round your answer to two decimal places. Answer = __________________________
A project has an initial cost of $35,000, expected net cash inflows of $8,000 per year for 7 years, and a cost of capital of 11%. What is the project's discounted payback period? Round your answer to two decimal places. Answer = _______________________
Talbot Industries is considering launching a new product. The new manufacturing equipment will cost $19 million, and production and sales will require an initial $1 million investment in net operating working capital. The company's tax rate is 35%.
- What is the initial investment outlay? Write out your answer completely. For example, 2 million should be entered as 2,000,000. $
- The company spent and expensed $150,000 on research related to the new project last year. Would this change your answer? -Select-Yes or NO
- Rather than build a new manufacturing facility, the company plans to install the equipment in a building it owns but is not now using. The building could be sold for $1.5 million after taxes and real estate commissions. How would this affect your answer? The project's cost will -Select- increase , decrease or not change
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