Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Barcode Biz has invested in new machinery at a cost of $1,450,000. This investment is expected to produce cash flows of $640,000, $715,000, and $823,000

Barcode Biz has invested in new machinery at a cost of $1,450,000. This investment is expected to produce cash flows of $640,000, $715,000, and $823,000 over the next three years. If the opportunity cost of capital is 13 per cent per annum what is the NPV of this project (rounded to the nearest dollar)?

Select one:

A. $467,273

B. $310,054

C. $299,099

D. $246,702

A company is considering an investment that will cost $852,000 and have a useful life of 7 years. The cash flows from the project are expected to be $464,000 per year in the first two $88,000 per year for the last 5 years. If the appropriate discount rate is 12.1 percent per annum, what is the NPV of this investment (to the nearest dollar)?

Select one:

a. $182965

b. $1886965

c. $200463

d. $247590

A company is in the process of constructing a new plant at a cost of $18 million. It expects the project to generate cash flows of $10 million, $6 million, and $9 million over the next three years. The cost of capital is 17.3 percent p.a. What is the net present value of this project? (in millions to three decimals)

Select one:

a. $0.462

b. $36.462

c. $-2.261

d. $1.217

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

Step: 3

blur-text-image

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

Broadcasting Finance In Transition

Authors: Jay G. Blumler, T. J. Nossiter

1st Edition

0195050894, 978-0195050899

More Books

Students also viewed these Finance questions

Question

What aspects would it be impossible to capture?

Answered: 1 week ago

Question

Enhance your words with effective presentation aids

Answered: 1 week ago