Question
Please show steps and formulas and not just excel without explanations. 1. Your company is considering a new project opportunity. It would immediately receive $190.
Please show steps and formulas and not just excel without explanations.
1. Your company is considering a new project opportunity. It would immediately receive $190. However, you must pay the following money over the next 4 years: Y1: 30 Y2: 60 Y3: 40 Y4: 90 The required rate of return is 10% What is this projects IRR? Should it be accepted or rejected? Why?
2. 4 year project would require an initial cash reserve of $50,000. It will be necessary to increase this reserve by $3,000 each subsequent year of the project. What is the NWC for years 0-4? Use negatives for negative answers.
3. You are considering a 4 year investment Initial investment = 700 ATSV = 250 Immediate cash reserve = 60 Annual profits = 200 The discount rate is 8% What is the NPV of this project?
4. You are trying to forecast the next years return for Apples stock using the estimates of their performance available today. If the economy does very good, next years return will be 25% If the economy does good, next years return will be 20% If the economy is normal, next years return will be 10% If the economy does bad, next years return will be -10% If the economy goes into a recession, next years return will be -25% All scenarios are equally likely to occur Calculate Apples expected return
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