Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

a proped with an initial investment of 506 500 that is expected to produce cash inflows of $125.000 for nine years Comells required rate of

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
a proped with an initial investment of 506 500 that is expected to produce cash inflows of $125.000 for nine years Comells required rate of return is 12% Click on the icon to view Present Value of $1 table) Click on the icon to view Present Value of Ordinary Annuity of S1 table.) 14. What is the NPV of the project? 16. What is the IRR of the project? 16. Is this an acceptable propic for Come? 12% Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 14% 15% 16% 18% 20% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 Period 2 0.980 0.961 0.943 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.797 0.7690 756 0.743 0.7180.694 Period 3 10.971 0.942 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.7120.675 0.658 0.641 0.609 0.579 Period 4 0.961 0.924 0.888 0.855 0.823 0.792 0.763 0735 0708 0.683 0 636 0.592 0.572 0.5520 516 0.482 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.567 0.519 0.497 0.476 0.437 0.402 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0596 0.564 0.507 0.456 0.432 0.410 0.370 0.335 Period 7 0.933 0.871 0.813 0.760 0.7110.665 0.623 0583 0.547 0.513 0.452 0.400 0.376 0.354 0.314 0 279 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.404 0.351 0327 0.305 0.266 0.233 Period 9 0.914 0 837 0.766 0.703 0.645 0.592 0.544 0.500 0460 0.424 0361 03080 284 0.263 0.225 0.194 Period 10 0.905 0.820 0.744 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0322 0.270 0.247 0.227 0.191 0.162 Period 11 0896 0.804 0.722 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.287 0.237 0215 0.195 0.162 0.135 Period 12 0.887 0.788 0.701 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.257 0208 0.187 0.168 0.137 0.112 Period 13 0.879 0773 0.681 0.601 0.530 0.469 0.415 0.368 0326 0.290 0.229 0.1820.163 0.145 0.116 0.093 Period 14 0.870 0.758 0,661 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0205 0.1600.141 0.125 0.099 0.078 Period 15 0.861 0.743 0.642 0.555 0481 0.417 0362 0.315 0275 0.239 0.183 0.140 0.123 0.108 0.084 0.065 Period 16 0.853 0.728 0.623 0.534 0.458 0.394 0.339 0292 0252 0218 0.163 0.123 0.107 0.093 0.071 0.054 Period 17 0.844 0.714 0.605 0.513 0.436 0.371 0.317 0.270 0231 0.1980.146 0.108 0.093 0.080 0.060 0.045 Period 18 0836 0.700 0.587 0.494 0.416 0.350 0.296 0.250 0.212 0.180 0.130 0.095 0.081 0.069 0.051 0.038 Period 19 0.828 0.686 0570 0.475 0.396 0331 0.277 0232 0.194 0.164 0.11600830070 0.060 0.043 0.031 Period 20 0.820 0.673 0.554 0.456 0.377 0.312 0 258 0.215 0.1780 1490 104 0.073 0.061 0.051 0.037 0.026 Period 21 0811 0660 0538 0.439 0.359 0.294 0 242 0199 0164 0135 0093 0.064 0.053 0044 0.031 0.022 Period 22 0.803 0.647 0.522 0.422 0.342 0278 0.226 0184 0.15001230.083 0.056 0.046 0.038 0.026 0.018 Period 23 0.795 0.634 0 507 0.406 0.3260 262 0211 0.1700 1380.112 0.074 0.049 0.040 0.033 0.022 0.015 Period 24 0.788 0.622 0.492 0.3900 3100247 0.197 0.158 0.126 0.1020066 0.043 0.035 0.0280 019 0.013 Period 25 0.780 0.610 0.478 0.375 0.2950 233 0.184 0.146 0.116 0.092 0.0590.038 0.030 0.0240016 0.010 Period 26 0.772 0598 0.4640361 0.2810 2200 172 0 1350 106 0.0840053 0.033 0.0280021 0.014 0.009 5% 6% Present Value of Ordinary Annuity of $1 Periods 1% 2% 3% 4% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 Period 2 1.970 1.942 1.913 1.886 1.859 1833 1.808 1.783 1.759 1.736 1.6901.647 1.626 1.605 1.566 1.528 Period 3 2.941 28842829 2.775 2.723 2.673 2.624 2.577 25312487 2.4022322 2283 2246 2.174 2106 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.3873,312 3.240 3.170 3.037 2.914 2.855 | 2798 2.690 2.589 Period 5 4.853 4.713 4.580 4.452 43294212 4.100 3.993 3.890 3.791 3.605 3.433 3.352 3.274 3.127 2.991 Period 6 5.795 5.601 5.417 5.242 5.076 4.917 4.767 4.623 4.4864.355 4.111 3.889 3.784 3685 3.498 3326 Period 7 6.7286.472 6.230 6.002 5786 5582 5,389 5.206 5,033 4.86845644 288 4.160 4.039 3.812 3.605 Period 8 7.652 7.3257.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 4.9684.6394.487 4.344 4.0783837 Period 9 8 566 8.1627.786 7.435 | 7.108 6.802 6.515 6 247 5.995 5.759 5.328 4.946 4.7724.607 4.303 4.031 Period 10 9.4718,983 8.530 8.111 7 722 736070246.710 6.418 6.145 5.6505.216 5.019 4.833 4.494 4.192 Period 11 10.368 9.787 9.253 8.760 8.306 7 887 7.499 7.139 6.805 6.495 5.938 5.453 5.234 5.029 4.656 4.327 Period 12 11.255 10.575 9.954 9.385 8.863 8 384 7943 7 536 7 1616.814 6. 1945.660 5.421 5.197 4.793 4.439 Period 13 12.134 11.348 10.6359.986 9.3948.853 8 358 7.904 74877 1036.424 5.842 5.583 5 342 4.910 4533 Period 14 13.004 12.106 1 296 10.563 9.899 9.295 8.745 8.2447 786 7 367 6.6286.002 5.724 5.468 5.008 4.611 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.5598.061 7606 6.811 6.142 5.847 5.575 5.092 4.675 Period 16 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.313 7 824 6.9746.265 5.954 5.669 5.162 4.730 Period 17 15,562 14.292 13.166 12.166 11 274 10.477 9763 9.122 8544 8.022 7.1206.373 6.047 5.749 5.222 4775 Period 18 16.398 14.992 13.754 12.65911.690 10.828 10.0599.372 8.756 8.201 7.250 6.467 6.128 5.818 5.273 4.812 Period 19 17 226 15.678 14.324 13.13412085 11.158 10.336 9.604 8.950 8.3657366 6.550 6.198 5.877 5.316 4844 Period 20 18.046 16.351 14.87713590 12.462 11.470 105949.8189 129 8.514 7.4696.623 6.259 5.929 5353 4.870 Period 21 18.857 17 011 15.415 14.029 12.821 11764 10.836 10.0179292 86497.5626.687 6312 5.973 5.384 4.891 Period 22 19.660 17.658 1593714451 13 163 12.042 11.061 10.2019.442 87727 645 6.7436.359 6.011 5.410 4.909 Period 23 20.456 18 292 16.444 14.857 13.489 12 303 11 272 10.371 9580 8.883 7.718 6.792 6.3996.044 5.432 4.925 Period 24 21 243 18.914 16.936 15,247 13.799 12550 11.469 10.529 9.707 8.9857.7846.835 6.434 6.073 5.451 4937 Period 25 22.023 19.523 17 413 15.622 14.094 12 783 11.654 10.675 9.823 9.077 7.843 | 6.873 6.464 6.097 5.467 4948 minus sign for a negative net present value.) Years Net Cash Inflow Annuity PV Factor (i=12%, n=9) Present Value 1-9 Present value of annuity 0 Investment Net present value 15. What is the IRR of the project? Start by calculating the Annuity PV factor. (Enter the factor amount to three decimal places, X.XXX.) II Annuity.PV factor 11 Amount of cash inflow Cornell? Initial investment >r Cornell, because the NPV is than zero and the IRR is Required rate of return Years umber in the input fields and then continue to the next question 15 21 pm 7/21 pm Assignment 14. What is the NPV of the project? (Enter the factor amount to three decimal places, XXXX Round the present value of the annuity to the near minus sign for a negative net present value Exam 1 Net Cash Annuity PV Factor Present Years Inflow (i=12%, n9) Value 1-9 Present value of annuity Exam 2 0 Investment Net present value Exam 3 16. What is the IRR of the project? Start by calculating the Annuity PV factor. (Enter the factor amount to three decimal places, X.XXX.) Exam 4 Annuity PV factor 1121 pm 5/21 9pm Final Ex 27/21 59pm The IRR of the project is Amount of cash inflow 16. Is this unacceptable project for Initial investment than zero and the IRR is This an acceptable project! ple Tests and Quizzes ple tests and quizzes res do not affect your Choose from any list of enter any Required rate of retum than Comell's required rate of retur Years a continue to the next question Time Remais Type here to search O 0 ED 4. What is the NPV of th ninus sign for a negative Years 12%-14% 1-9 Present value 14% 0 Investment Net present vi 14%-15% 15. What is the IRR of the 15% Start by calculating the Ar 18% 18%-20% The IRR of the project is shiny 16. Is this an acceptable project for Cornell? This an acceptable proiect for 16. Is this an acceptable project This an acceptable proje Choos is not or enter any is ect is table project for Cornell? ceptable project for Cornell, because the NPV is than zero and the l list or enter any number in the input fields and less he next qy greater than zero and the IRR is thing than Cornell's re d then continue to the next questio less greater

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting A Critical Approach

Authors: John Friedlan

1st Edition

0130193720, 978-0130193728

More Books

Students also viewed these Accounting questions

Question

=+What does this say for the future of the business case for CSR?

Answered: 1 week ago