View Perfect is considering an investment in a new line of windows. The project is expected to last 10 years. If the factor of the internal rate of return is 5.889, the internal rate of return is 0 14% 0 10% О 5% 0 11% ooo o
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View Perfect is considering an investment in a new line of windows. The project is expected to last 10 years. If the factor of the
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- Find the internal rate of return for the following investment (yes I want the actual rate). Is it a good idea if MARR=10%? Year -160,400 1 75,000 2 -32,000 3 55,000 4 32,500 5 69,500The project has a payback period of 3.25 years. If the company's discount rate is 8% find the profabitlity index of the investment. Years Cash Flows 0. = ? HOW DO YOU FIND THIS ? (Can I use a Financial calculator ?) 1. = $200,000 2. = $300,000 3. =$400000 4. = $500,000Your firm has the option of marking an investment in softwarre that will cost $400,000 today but will save the company money over several years. You estimate that the software will provide the savings shown in the following table over its 5 year life. Should the firm make this investment if it requires a minimmum return of 7% on all investments? Year Savings Estimate 1 $97,000 2 $135,800 3 $126,100 4 $67,900 5 $38,800 The present value of the stream of saving is ? Should the firm make the investment?
- Consider a project which costs £100 in year zero and yields a return of £15 per year starting from year one. Assume that the project will go on forever and that the appropriate discount rate is 10%. The NPV of this project is 20 150 15/1.1-100 50Consider a project in which you have to invest $15,000 today and you will receive $24847 in one year. What is the internal rate of return (IRR) of this project? The IRR is % (Keep 2 decimal places). Answer:Consider an investment that cost 100,000 as a cash inflow of 35,000 every year for 4 years required Return is 15% the required. Payback is 3 years. Please use formula. what is the pay back Period Should we accept the investment ? why? What is the NPV? Should we accept investment why? what is the PI? Should we accept investment? why? shoukd we accept the project ? Why?
- You are considering a project that requires a $1000 investment today and returns $550 at the end of the first year and $726 at the end of the second year. If your discount rate is 10%, then the Net Present Value (NPV) of the investment is $ type your answer... In this case, the Internal Rate of Return is choose your answer... than 10%.A investment opportunity requires an investment today of $48.91 and then in five years, will generate a revenue flow of $24 with prob. 0.5 and $84 with prob. 0.5. What is the internal rate of return for this project? 2% 4% 6% 8%Q. 3. You have an opportunity to install solar panels on your home. The upfront cost of installing the system is $30,000 and the system is expected to save you $140 per month in electricity costs. The expected lifetime of the system is 25 years. a) Write down the formula for the internal rate of return on this project. b) Use Excel to graph the internal rate of return at different discount rates, ranging from 0% to 10%. Attach your graph. c) Over the last 20 years the rate of return on the U.S. stock market has been an average of 7% (using the annual rate of growth in the Wilshire 5000 index). Given that you could invest your $30,000 in the stock market, does the investment in solar panels make sense from an economic perspective? Why or why not? d) How high would the monthly electricity savings need to be to justify this investment if the internal rate of return needed to be at least 7%.
- Moving to another question will save this response. Question 4 XYZ is evaluating a project that would require an initial investment of $74,900.00 today. The project is expected to produce annual cash flows of $8,900.00 each year forever with the first annual cash flow expected in 1 year. The NPV of the project is $7,100.00. What is the IRR of the project? O 10.85% (plus or minus 0.02 percentage points) O 11.88% (plus or minus 0.02 percentage points) O 9.48% (plus or minus 0.02 percentage points) O 13.13% (plus or minus 0.02 percentage points) O None of the above is within 0.02 percentage points of the correct answer A Moving to another question will save this response.Observe the graph below and identify the internal rate of return. Assume that the discount rate is 8%. What is the net present value of the project? Briefly explain if the project is viable or not? NPV 50000 40000 30000 20000 10000 4 10 12 14 16 18 20 22 24 • 26 28 -10000 discount rate Edit View Insert Format Tools TableSuppose a project with a 6% discount rate yields R5000 for the next three years. Annual operating costs amount to R1000 for each year, and the one time initial investment cost is R8000. a. Calculate the Net Present Value (NPV) of this project.b. Calculate the cost-benefit ratio for the project. c. Is the project acceptable? Motivate your answer.
