Question: 3) The initial outlay or cost is $2,000,000 for a four- year project. The respective future cash inflow for years 1,2,3 and 4 are

3) The initial outlay or cost is $2,000,000 for a four- year

3) The initial outlay or cost is $2,000,000 for a four- year project. The respective future cash inflow for years 1,2,3 and 4 are $900,000, $600,000, $400,000 and $700,000. Calculate the NPV if the cost of capital if 14%?

Step by Step Solution

★★★★★

3.25 Rating (151 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

To calculate the Net Present Value NPV of the project you need to discount each cash ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

1 Assumptions and Calculated Values 2 Bank Rate Information: Flynn's Bank Account Rate (compounded monthly) Monthly Bank Rate Effective Annual Interest Rate Salary and Bonus Information: Annual...

Clippers and Clampers, can you simulate this in multisim please,I need to see the simulation screenshot for the 2 procedure withgraphsthese are the 2 procedures I. OBJECTIVE To investigate the...

a. After 6 months of production, the company has been able to post the mid-year sales figures presented in the table below. Using the exponential smoothing factor of a= 0.40, forecast the sales in...

A merger or acquisition (M&A) is the largest capital budgeting decision a firm makes. It is also the most visible. Pick up a copy of the Wall Street Journal on any day, and you are likely to read...

(a) The initial outlay or cost is $1, 000, 000 for a 4 year project. The respective future inflows for years 1, 2, 3 and 4 are $500, 000, $300, 000, $300, 000 and $300, 000. What is the payback...

B C D Exhibit 1 Purchase new system Initial Outlay Year 1 Year 2 Year 3 Year 4 Years Year 51.750,000 1,050,000 200,000 250.000 2.000.000 750,000 56,000,000 5 Initial cash outflows Hardware Software...

Narville Environmental Services A support staff that is more efficient and effective (Maryville Environmental Services offers retraining for a new position in the company to any support staff...

4.1what percentage of the sale is made up of net income? 4.2 calculate two appropriate liquidity ratios and comment on the liquidity of the company. 4.3 calculate the relevant ratios and comment on...

3: ANALYSIS & INTERPRETATION OF FINANCIAL STATEMENTS OF A PARTNERSHIP (26 marks; 18 minutes) Provided below is the financial information from the books of MARUPENG PARTNERSHIP which as a current year...

Hi, this assignment is Urgent! The instruction is in the attachment ?final project guidelines and rubric?. Using Home Depot Financial Report, (here?s the link)...

P8?3 Risk preferences Sharon Smith, the financial manager for Barnett Corporation, wishes to evaluate three prospective investments: X, Y, and Z. Sharon will evaluate each of these investments to...

You are in charge of shipping computers to customers. You learn that a RAM chip was put into some of the machines. There's a simple test you can perform, but it's not perfect. All but 4% of the time,...

Aretha Company provided the following information: Standard variable overhead rate (SVOR) per direct labor hour $4.70 Actual variable overhead costs $335,750 Actual direct labor hours worked (AH)...

Select all that apply Using net book value of assets to compute ROI Blank _ _ _ _ _ _ . Multiple select question. inflates ROIs of divisions with newer assets can cause a division's assets to become...

The sales department of S. Miller Manufacturing Company has forecast sales for its single product to be 20,000 units for the month of June, with three-quarters of the sales expected in the East...

An electron's position is given by r = 3.00ti 4.00t 2 j + 2.00k, with t in seconds and r in meters. (a) In unit vector notation, what is the electron's velocity v (t)? At t = 2.00 s, what is v (b)...

Depletion ComputationsTimber Jonas Lumber Company owns a 7,000-acre tract of timber purchased in 2003 at a cost of $1,300 per acre. At the time of purchase the land was estimated to have a value of...

The current sections of Bellinham Inc.s balance sheets at December 31, 2009 and 2010, are presented here. Bellinhams net income for 2010 was $153,000. Depreciation expense was $24,000. Instructions...

Beckman Engineering and Associates (BEA) is considering a change in its capital structure. BEA currently has $20 million in debt carrying a rate of 8 percent, and its stock price is $40 per share...

Choose the correct answer to complete the sentence. My new computer is _____ my old one. more expensive expensiver more expensive than

Explain the reasons for the growth and decay of each source of conflict in Figure, and for the Total as well. 04 0.3 Average total conflict 0.2 0.1 Figure 2-6 Conflict intensity over the project life...

The following activities were listed during a brainstorming session on product development. Find the appropriate predecessor-successor relationships and then construct an AON network to reflect the...

Contrast simulation to other risk analysis tools. What are its advantages and disadvantages? If you were to do an important risk analysis, which tool would you prefer?

A mail-order computer business has six telephone lines. Let X denote the number of lines in use at a specified time. Suppose the pmf of X is as given in the accompanying table. Calculate the...

The number of pumps in use at both a six-pump station and a four-pump station will be determined. Give the possible values for each of the following random variables: a. number of pumps in use b....

Many manufacturers have quality control programs that include inspection of incoming materials for defects. Suppose a computer manufacturer receives computer boards in lots of five. Two boards are...