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Please show your work Please view that attachment found below 1.A project has an initial cost of $32,500.00, expected net cash inflows of $12,000.00 per
Please show your work
Please view that attachment found below
1.A project has an initial cost of $32,500.00, expected net cash inflows of $12,000.00 per year for 9 years, and a cost of capital of 9.00%. What is the project's NPV? (Hint: Begin by constructing a time line.) Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72. 2. A project has an initial cost of $3,425, expected net cash inflows of $1,325 per year for 5 years, and a cost of capital of 9.65%. What is the project's IRR? Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72 3. A project has an initial cost of $35,460 expected net cash inflows of $10,390 per year for 9 years, and a cost of capital of 12.55%. What is the project's MIRR? 4. A project has an initial cost of $38,100.00, expected net cash inflows of $10,700.00 per year for 11 years, and a cost of capital of 9.00%. What is the project's PI? Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72. 5. A project has an initial cost of $43,800.00, expected net cash inflows of $8,100.00 per year for 8 years, and a cost of capital of 8.50%. What is the project's payback period? Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72. 6. A project has an initial cost of $800, expected net cash inflows of $620.30 per year for 5 years, and a cost of capital of 8.85%. What is the project's discounted payback period? 7. Your division is considering two investment projects, each of which requires an up-front expenditure of $2,379,000.00. You estimate that the investments will produce the following net cash flows: Year Project B 1 $20,760,000 2 9,730,000 3 5,600,000 b. What is the net present values of project B, assuming the cost of capital is 8.50%? Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72. 8. Your division is considering two investment projects, each of which requires an up-front expenditure of $2,338,000.00. You estimate that the investments will produce the following net cash flows: Year 1 2 3 Project A $5,030,000 10,860,000 20,190,000 a. What is the net present values of project A, assuming the cost of capital is 16.50%? Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72. 9. Edelman Engineering is considering including two pieces of equipment, a truck and an overhead pulley system, in this year's capital budget. The projects are independent. The cash outlay for the truck is $18,000, and that for the pulley system is $22,400. The firm's cost of capital is 11.50%. After-tax cash flows, including depreciation, are as follows: Year Truck 1 $5,800 2 $5,800 3 $5,800 4 $5,800 5 $5,800 Pulley $8,800 $8,800 $8,800 $8,800 $8,800 Calculate NPV of truck project and Pully project Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% enter as 5.72 in the answer box provided. 10. Problem 10-8(2) NPVs, IRRs, and MIRRs for Independent Projects Edelman Engineering is considering including two pieces of equipment, a truck and an overhead pulley system, in this year's capital budget. The projects are independent. The cash outlay for the truck is $16,100, and that for the pulley system is $22,500. The firm's cost of capital is 14.00%. After-tax cash flows, including depreciation, are as follows: Year Truck 1 $5,350 Pulley $8,600 2 3 4 5 $5,350 $5,350 $5,350 $5,350 $8,600 $8,600 $8,600 $8,600 Calculate MIRR of truck project and Pully project Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% enter as 5.72 in the answer box provided. 11. Cummings Products Company is considering two mutually exclusive investments whose expected net cash flows are as follows: Year 0 1 2 3 4 5 6 7 8 Project A Project B ($610.00) ($469.00) 300 290 310 290 320 290 330 290 340 290 350 290 360 290 370 290 e. What is the crossover rate? Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72. 12. Filkins Fabric Company is considering the replacement of its old, fully depreciated knitting machine. Two new models are available: Machine 190-3, which has a cost of $217,000, a 5-year expected life, and after-tax cash flows (labor savings and depreciation) of $90,100 per year; and Machine 360-6, which has a cost of $330,000, a 10-year life, and after-tax cash flows of $91,000 per year. Knitting machine prices are not expected to rise, because inflation will be offset by cheaper components (microprocessors) used in the machines. Assume that Filkins' cost of capital is 11.45%. Calculate the eqivalent annual annuity of Macnine 190-3 and Machine 190-6? Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% enter as 5.72 in the answer box providedStep by Step Solution
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