Question: A project whose initial cash outlay is $ 106,925 and required rate of return of 12% has the following cash flows: (use excel and show

  1. A project whose initial cash outlay is $ 106,925 and required rate of return of 12% has the following cash flows: (use excel and show formula)

Year

Cash flows

1

55,770

2

42,195

3

28,145

4

9,830

Required:

  1. Compute the projects Discounted Payback.
  2. What is the projects Net Present Value (NPV)?
  3. Assuming that the cash flows from the project are reinvested at the rate of 15%, calculate the Projects Modified Internal Rate of Return (MIRR).

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
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!

Q:

(Calculating free cash flows) You are considering new elliptical trainers and you feel you can sell 6,000 of these per year for 5 years (after which time this project is expected to shut down when it...

Q:

(Calculating free cash flows) You are considering new elliptical trainers and you feel you can sell 3,000 of these per year for 5 years (after which time this project is expected to shut down when it...

Q:

You are considering new elliptical trainers and you feel you can sell 6,000 of these per year for 5 years (after which time this project is expected to shut down when it is learned that being fit is...

Q:

You are given the following information on the best guess of related outcomes for a project. The initial cash outlay of a 2-year pilot study of the product is $10M. Following the 2-year pilot study,...

Q:

Question 2 1 pts A replacement computer will cost you $3,500, but save you $750 each year because of the faster processor. What is the payback period of the computer? 4.91 4.80 4.38 4.57 4.67 Flag...

Q:

(Calculating free cash flows) You are considering new elliptical trainers and you feel you can sell 3,000 of these per year for 5 years (after which time this project is expected to shut down when it...

Q:

(Calculating free cash flows) You are considering new elliptical trainers and you feel you can sell 4,000 of these per year for 5 years (after which time this project is expected to shut down when it...

Q:

1. Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 7 percent, and that the maximum...

Q:

You are considering new elliptical trainers and you feel you can sell 4,000 of these per year for 5 years (after which time this project is expected to shut down when it is learned that being fit is...

Q:

please see attached document. Thanks. I need the answers and I will figure out the math. Question 2 1 pts A replacement computer will cost you $3,500, but save you $750 each year because of the...

Q:

Kims Nursery sells a wide variety of plants and offers courseson summer and winter garden maintenance. Kim Linge prepared theunadjusted trial balance in December 2021, shown below. KimsNursery...

Q:

What is the mass percentage of H2O2 in a solution with 1.67 g of H2O2 in a 55.5 g sample?

Q:

Dan dies. (His wife Hannah died 3 years earlier). Dan's gross estate is valued at $28 million. His funeral and administrative costs total $40,000. Dan owes a total of $600,000 on a mortgage and other...

Q:

Question 1 3 1 pts A promise to do ( or not do ) something in the future counts as consideration. True False

Q:

Would you want to work in a company with a culture like Huaweis? Why or why not?

Q:

Do you think it is possible to sustain such a culture as leaders change? Why or why not?

Q:

How might the border tax impact Mexican workers and what responsibility does GM have to them? Should a global company care more about its home-country workers than host-country workers?