Question
Compute the NPV for Project X with the cash flows shown below if the appropriate cost of capital is 9 percent. Time: 0 1 2
Compute the NPV for Project X with the cash flows shown below if the appropriate cost of capital is 9 percent. Time: 0 1 2 3 4 5 Cash flow: -130 -130 0 210 185 160 Compute the Payback statistic for Project X and recommend whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 8 percent and the maximum allowable payback is 3 years. Time: 0 1 2 3 4 5 Cash flow: -2,000 300 650 900 725 500
Compute the PI statistic for Project X and note whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 10 percent. Time: 0 1 2 3 4 5 Cash flow: -80 -80 0 105 80 55
Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 14 percent, and that the maximum allowable payback and discounted payback statistic for the project are 2 and 3 years, respectively. Time 0 1 2 3 4 5 6 Cash Flow -1,170 10 590 790 790 390 790 Use the payback decision rule to evaluate this project; should it be accepted or rejected?
Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 14 percent, and that the maximum allowable payback and discounted payback statistic for the project are 2 and 3 years, respectively. Time 0 1 2 3 4 5 6 Cash Flow -960 160 440 640 640 240 640 Use the discounted payback decision rule to evaluate this project; should it be accepted or rejected?
Compute the PI static for your firm's new project if the appropriate cost of capital is 8 percent. (Do not round intermediate calculations and round your final answer to 2 decimal laces.) Your firm's project Time 0 1 2 3 4 5 6 Cash Flow -660 70 570 770 770 370 770 Should the project be accepted or rejected?
Suppose your firm is considering two mutually exclusive, required projects with the cash flows shown below. The required rate of return on projects of both of their risk class is 11 percent, and that the maximum allowable payback and discounted payback statistic for the projects are 2 and 3 years, respectively. Time: 0 1 2 3 Project A Cash Flow -28,000 18,000 38,000 9,000 Project B Cash Flow -38,000 18,000 12,000 58,000 Use the payback decision rule to evaluate these projects; which one(s) should it be accepted or rejected?
Suppose your firm is considering two mutually exclusive, required projects with the cash flows shown below. The required rate of return on projects of both of their risk class is 8 percent, and that the maximum allowable payback and discounted payback statistic for the projects are 2 and 3 years, respectively. Time: 0 1 2 3 Project A Cash Flow -25,000 15,000 35,000 6,000 Project B Cash Flow -35,000 15,000 25,000 55,000 Use the NPV decision rule to evaluate these projects; which one(s) should it be accepted or rejected?
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