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Please see attached for help. Consider the following projects: Cash Flows, $ Project C 0 C 1 C 2 C 3 C 4 C 5

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Please see attached for help.

  • Consider the following projects:

Cash Flows, $

Project

C0

C1

C2

C3

C4

C5

A

-1,300

+1,300

0

0

0

0

B

2,600

+1,300

+1,300

+4,300

+1,300

+1,300

C

3,250

+1,300

+1,300

0

+1,300

+1,300

If the opportunity cost of capital is 9%, what is the NPV for each project? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.)Calculate the payback period for each project. (Do not round intermediate calculations. Round your answer to 2 decimal places.)Calculate the discounted payback period for each project. (Enter 0 if the payback period cannot be calculated. Do not round intermediate calculations. Round your answers to 2 decimal places.)Marsha Jones has bought a used Mercedes horse transporter for her Connecticut estate. It cost $47,000. The object is to save on horse transporter rentals.

Marsha had been renting a transporter every other week for $212 per day plus $1.60 per mile. Most of the trips are 90 miles in total. Marsha usually gives the driver a $50 tip. With the new transporter she will only have to pay for diesel fuel and maintenance, at about $0.57 per mile. Insurance costs for Marshas transporter are $1,800 per year.

The transporter will probably be worth $27,000 (in real terms) after eight years, when Marshas horse Nike will be ready to retire. Assume a nominal discount rate of 9% and a 3% forecasted inflation rate. Marshas transporter is a personal outlay, not a business or financial investment, so taxes can be ignored.

Hint: All numbers given in the question are in real term.

Calculate the NPV of the investment. (Do not round intermediate calculations. Round your answer to 2 decimal places.)1.)Consider the following projects:

Cash Flows, $

Project

C0

C1

C2

C3

C4

C5

A

-1,300

+1,300

0

0

0

0

B

2,600

+1,300

+1,300

+4,300

+1,300

+1,300

C

3,250

+1,300

+1,300

0

+1,300

+1,300

a.If the opportunity cost of capital is 9%, what is the NPV foreach project? (Negativeamounts should be indicated by a minus sign. Do not round intermediatecalculations. Round your answers to 2 decimal places.)

b.Calculate the payback period for each project. (Do not round intermediatecalculations. Round your answer to 2 decimal places.)

c.Calculate the discounted payback period for each project. (Enter 0 if the paybackperiod cannot be calculated. Do not round intermediate calculations. Round youranswers to 2 decimal places.)

2.)Marsha Jones has bought a used Mercedes horse transporter forher Connecticut estate. It cost $47,000. The object is to save on horsetransporter rentals.

Marsha had beenrenting a transporter every other week for $212 per day plus $1.60 per mile.Most of the trips are 90 miles in total. Marsha usually gives the driver a $50tip. With the new transporter she will only have to pay for diesel fuel andmaintenance, at about $0.57 per mile. Insurance costs for Marshas transporterare $1,800 per year.

The transporter willprobably be worth $27,000 (in real terms) after eight years, when Marshashorse Nike will be ready to retire. Assume a nominal discount rate of 9% and a3% forecasted inflation rate. Marshas transporter is a personal outlay, not abusiness or financial investment, so taxes can be ignored.

Hint: All numbers given in the question are in real term.

Calculate the NPV of the investment. (Do not roundintermediate calculations. Round your answer to 2 decimal places.)

image text in transcribed 1.) Consider the following projects: Cash Flows, $ Project C0 C1 C2 A -1,300 +1,300 0 B -2,600 +1,300 +1,300 C -3,250 +1,300 +1,300 C3 C4 C5 0 +4,300 0 0 +1,300 +1,300 0 +1,300 +1,300 a. If the opportunity cost of capital is 9%, what is the NPV for each project? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.) b. Calculate the payback period for each project. (Do not round intermediate calculations. Round your answer to 2 decimal places.) c. Calculate the discounted payback period for each project. (Enter 0 if the payback period cannot be calculated. Do not round intermediate calculations. Round your answers to 2 decimal places.) 2.) Marsha Jones has bought a used Mercedes horse transporter for her Connecticut estate. It cost $47,000. The object is to save on horse transporter rentals. Marsha had been renting a transporter every other week for $212 per day plus $1.60 per mile. Most of the trips are 90 miles in total. Marsha usually gives the driver a $50 tip. With the new transporter she will only have to pay for diesel fuel and maintenance, at about $0.57 per mile. Insurance costs for Marsha's transporter are $1,800 per year. The transporter will probably be worth $27,000 (in real terms) after eight years, when Marsha's horse Nike will be ready to retire. Assume a nominal discount rate of 9% and a 3% forecasted inflation rate. Marsha's transporter is a personal outlay, not a business or financial investment, so taxes can be ignored. Hint: All numbers given in the question are in real term. Calculate the NPV of the investment. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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