Question
Muncy, Inc., is looking to add a new machine at a cost of $4,133,250. The company expects this equipment will lead to cash flows of
Muncy, Inc., is looking to add a new machine at a cost of $4,133,250. The company expects this equipment will lead to cash flows of $819,822, $863,275, $937,250, $1,018,610, $1,212,960, and $1,225,000 over the next six years. If the appropriate discount rate is 15 percent, what is the NPV of this investment?
My answer= -436,293.92 ...Is this correct?
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An investment of $83 generates after-tax cash flows of $38.00 in Year 1, $68.00 in Year 2, and $135.00 in Year 3. The required rate of return is 20 percent. The net present value is?
I am not sure how to do this problem. I have gotten the answer 41.55 which doesn't seem correct
McKenna Sports Authority is getting ready to produce a new line of gold clubs by investing $1.85 million. The investment will result in additional cash flows of $525,000, $832,500, and $1,200,000 over the next three years. What is the payback period for this project?
My answer= 2.5312
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Monroe, Inc., is evaluating a project. The company uses a 13.8 percent discount rate for this project. Cost and cash flows are shown in the table. What is the NPV of the project?
YearProject
0($11,368,000)
1$2,112,590
2$3,787,552
3$3,150,650
4$4,115,899
5$4,556,424
My answer is 392,339.45
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