Question
Your company considers seven new projects. Discount rate is 15%. You need to analyze these projects. Calculate the NPV of the first project using an
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Your company considers seven new projects. Discount rate is 15%. You need to analyze these projects.
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Calculate the NPV of the first project using an embedded function based on the information: An initial investment cost is $42,000. The project generates $8,720 in the first year. The cash flows have zero growth and the project only generates cash flows for 20 years.
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Calculate the NPV of the second project based on the information: An initial investment cost is $55,700. The project generates $5,100 in the first year, and continue to grow at a constant rate of 7% for 15 years.
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Calculate the NPV and IRR of the third project based on the information: An initial investment cost is $7,500. The project generates $1,250 in the first year. The cash flows have zero growth and the project is expected to generate cash flows forever.
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The fourth project has the same initial investment cost and generates the same first cash flows with the third project. However, the fourth project continue to grow at a constant rate of 6% per year forever. Calculate the NPV and IRR of the fourth project.
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Calculate the NPV and IRR of the fifth project based on the below information: An initial investment cost is $1,089,000 and its salvage value is $330,000. The project has expected cash flows of $125,000, $175,000, $246,000, $380,000, $452,000, and $439,100 over next six years.
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The sixth project has estimated free cash flows (FCF) of $900,000, $900,300, $802,000, $1,000,000, and $1,042,000 over next five years and believes that subsequent cash flows will grow at a constant rate of 3% forever. Calculate the TODAYs terminal value of cash flows and total value of the project.
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The last project has the same FCF with the sixth project. However, in the last projection period (year 5), the project has EBITDA of $8,500,000 and assume its EBITDA exit multiple of 10. Calculate the TODAYs terminal value of cash flows and total value of the project.
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