Question
Need assistance understanding how to calculate step by stel the questions below. 2. ABC Enterprises is considering a project that has the following cash flow
Need assistance understanding how to calculate step by stel the questions below.
2. ABC Enterprises is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's expected NPV can be negative, in which case it will be rejected.
WACC: 5%
Year 0 1 2 3
Cash flows -$1,050 $450 $460 $470
3. Warranty Inc. is considering a project that has the following cash flow and WACC data.
What is the project's NPV? Note that a project's expected NPV can be negative, in which case it
will be rejected.
WACC:10%
Year 0 1 2 3
Cash flows -$950 $500 $400 $300
4. Berry Company is considering a project that has the following cash flow and WACC
data. What is the project's NPV? Note that a project's expected NPV can be negative, in which
case it will be rejected.
WACC:8%
Year 0 1 2 3 4 5
Cash flows -$1,000 $400 $390 $380 $370 $360
5. Data Computer Systems is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's IRR can be less than the WACC (and even negative), in which case it will be rejected.
Year 0 1 2 3
Cash flows -$1,200 $600 $550 $500
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