A project has an IRR of 10%. It has the following cash flows where X is the initial outlay (i.e., cost) of the project.Given that the project's WACC is 5%, its NPV is closest to: Year Cash Flows 0 1 2 3 $X $5,000 $8,000 $10,000
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- POD has a project with the following cash flows: Year Cash Flows 0 -$ 281,000 145,500 123 163,000 128,100 The required return is 8.3 percent. What is the profitability index for this project?A project has the following cash flows: Year Cash Flows 0 $ 128,200 12 1 2 3 4 49,400 63,800 51,600 28,100 The required return is 8.7 percent. What is the profitability index for this project? Multiple Choice 1.142 1.003 .803 1.038Living Colour Co. has a project available with the following cash flows: Year Cash Flow 0 −$35,550 1 7,880 2 9,450 3 13,350 4 15,490 5 10,160 If the required return for the project is 7.6 percent, what is the project's NPV?
- A project will generate the following cash flows. If the required rate of return is 15%, what is the project’s net present value? Year Cash flow 0 –$50,000 1 $15,000 2 $16,000 3 $17,000 4 $18,000 5 $19,000 Select one: a. $16,790.47 b. $6,057.47 c. $3,460.47 d. $1,487.21 e. –$3,072.47Barry Inc. is considering a project that has the following cash flow and WACC data. What is the project's MIRR? WACC = 9.75% Year 1 3 5 CFs -$53,600 8,010 16,020 24,030 32,040 40,050 2.Consider an investment project with the cash flows given in the table below. Compute the IRR for this investment. Is the project acceptable at MARR = 10%? The IRR for this project is %. (Round to one decimal place.) n 0 1 2 3 Cash Flow -$35,000 15,000 14,520 13,990
- A project will generate the following cash flows. The required rate of return is 15%. If the profitability index is 1.7, what is the initial investment for this project? Year Cash flow 1 $15,000 2 $16,000 3 $17,000 4 $18,000 5 $19,000 Select one: a. $26,217.06 b. $31,460.47 c. $32,974.98 d. $37,752.57 e. $95,297.70You've estimated the following cash flows (in $) for a project: A B 1 Year Cash flow 2 0 -3,000 3 1 900 4 2 1,300 5 3 1,606 The required return is 8.5%. 1. What is the IRR for the project? 2. What is the NPV of the project? 3. What should you do? Check all that apply: Accept the project based on its IRR Accept the project based on its NPV Reject the project based on its IRR Reject the project based on its NPVSuppose a project has the following cash flows. What is the NPV if the cost of the project is $105,000 and the required return is 9.75%? Year Cash Flow $28.000 32,000 3 36,000 4 39,000 O$6,000 O $20,678 $1,193 $27,335 O $30,000 Page 16 of 30
- Suppose we have a project with the following cash flows;Outgoing: $150,000 at t=0 and $250,000 at t=1Income: $1,000,000 at t=2Find the IRR of the project.The net cash flow per year for the investment projects A and B, is presented in the table below. Expected Net Cash Flow ($) Project 0 1 2 3 4 A -10,000 6500 3000 3000 1000 B -10,000 3500 3500 3500 3500 Calculate the NPV, IRR, PI, and PVR for the cash flows given in the following table. Assume the minimum acceptable rate of return of 8%. Which projects should be accepted if they are independent projects? Would the selection of the projects change if the cost of capital were 12%?You must analyze two projects, X and Y. Each project costs $1,000, and the firm’s WACC is 10%. The expected net cash flows are as follows. What is the project Y’s NPV? Year: 0 1 2 3 4 Project X: -$1,000 $500 $400 $300 $100 Project Y: -$1,000 $100 $300 $400 $675 Which answers? $100.4 $1,004 $580 $4,750