Question
The discount rate at which a project will have a zero net present value is called: Group of answer choices 1 modified internal rate of
The discount rate at which a project will have a zero net present value is called:
Group of answer choices
1 modified internal rate of return.
2 the cost of capital.
3 the projects opportunity cost.
4 the internal rate of return.
Use the following information to answer the next 2 questions:
Zacks 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 projected NPV can be negative, in which case it will be rejected.
Discount rate: 12%
Year | 0 | 1 | 2 | 3 |
---|---|---|---|---|
Cash flows | -$1,200 | $900 | $800 | $500 |
To calculate the NVP, this problem requires
Group of answer choices
1- Discounting the positive cash flows
2- Discounting all cash flows to time 0
3- Reinvesting all cash flows after year 3
4- Calculating the future value of all cash flows
Based on the calculation above, NPV = $ ?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started