Question
firm is considering a project with the following expected cash flows: Year Cash Flow 0 -P350 million 1 100 million 2 185 million 3 112.5
firm is considering a project with the following expected cash flows: Year Cash Flow 0 -P350 million 1 100 million 2 185 million 3 112.5 million 4 350 million The projects WACC is 10 percent. What is the projects discounted payback? a. 3.15 years b. 4.09 years c. 1.62 years d. 3.09 years
The lolo Corporation has been presented with an investment opportunity that will yield end-of-year cash flows of $30,000 per year in Years 1 through 4, $35,000 per year in Years 5 through 9, and $40,000 in Year 10. This investment will cost the firm $150,000 today, and the firms cost of capital is 10 percent. What is the NPV for this investment? a. $135,984 b. $ 18,023 c. $219,045 d. $ 51,138
an investment project requires an initial investment of P100,000. The project is expected to generate net cash inflows of P28,000 per year for the next five years. Assuming a 15% discount rate, the project's Payback Period is:
A) 0.28 years
B) 3.36 years
C) 3.57 years
D) 1.40 years
EURUS operates a part time auto repair service. He estimates that a new diagnostic computer system will result in increased cash inflows of $1,500 in Year 1, $2,100 in Year 2, and $3,200 in Year 3. If EURUS required rate of return is 10%, then the most he would be willing to pay for the new computer system would be:
A) $4,599
B) $5,501
C) $5,638
D) $5,107
BABAEROPEROLOYAL Corporation is considering a project that would require an investment of P80,000. No other cash outflows would be involved. The present value of the cash inflows would be P60,000. The profitability index of the project is closest to:
A) 1.33
B) 0.75
C) 20,000
D) -0.25
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