Question: 1- Consider the two projects depicted in Table 2: The net present value (NPV) of project A is ________. Note: Express your answers in strictly

1- Consider the two projects depicted in Table 2: The net present value (NPV) of project A is ________. Note: Express your answers in strictly numerical terms. For example, if the answer is $500, write enter 500 as an answer."

Table 2

Project

Year 0

Year 1

Year 2

Year 3

Year 4

Discount

Cash Flow

Cash Flow

Cash Flow

Cash Flow

Cash Flow

Rate

A

-250

60

100

85

0

0.1

B

-200

60

30

30

30

0.1

_______________

2- "Consider the two projects depicted in Table 2: The net present value (NPV) of project B is ________. Note: Express your answers in strictly numerical terms. For example, if the answer is $500, write enter 500 as an answer."

__________________

3- "An auto-parts company is deciding whether to sponsor a racing team for a cost of $1000000. The sponsorship would last for 6 years and is expected to increase cash flows by $600000 per year. If the discount rate is 10%, what will be the change in the value of the company if it chooses to go ahead with the sponsorship? Note: Express your answers in strictly numerical terms. For example, if the answer is $500, write enter 500 as an answer."

4- "The owners of a chain of fast-food restaurants spend $15000000 installing donut makers in all their restaurants. This is expected to increase cash flows by $6000000 per year for the next 4 years. The discount rate is 10%. What is the net present value of installing the donut makers?"" Note: Express your answers in strictly numerical terms. For example, if the answer is $500, write enter 500 as an answer."

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