Question: Hello i need help with these questions here. I appreciate any help you can give, I will be certain to leave a great review and

Hello i need help with these questions here. I appreciate any help you can give, I will be certain to leave a great review and sincerely appreciate you taking the time to help me.

Hello i need help with these questions here. I
1. You have an opportunity to invest $104,000 now in return for $79,400 in one year and $29,600 in two years. If your cost of capital is 8.9%, what is the NPV of this investment? The NPV will be $ . (Round to the nearest cent.) 2. Your storage firm has been offered $96,400 in one year to store some goods for one year. Assume your costs are $96,700, payable immediately, and the cost of capital is 8.7%. Should you take the contract? The NPV will be $ (Round to the nearest cent.) Should you take the contract? (Select from the drop-down menu.) The contract (1) be taken. (1) O should not should . Marian Plunket owns her own business and is considering an investment. If she undertakes the investment, it will pay $5,320 at the end of each of the next three years. The opportunity requires an initial investment of $1,330 plus an additional investment at the end of the second year of $6,650. What is the NPV of this opportunity if the cost of capital is 1.9% per year? Should Marian take it? What is the NPV of this opportunity if the cost of capital is 1.9% per year? The NPV of this opportunity is $ (Round to the nearest cent.) Should Marian take it? Marian (1) take this opportunity. (Select from the drop-down menu.) (1) O should O should not 4. Your factory has been offered a contract to produce a part for a new printer. The contract would last for three years, and your cash flows from the contract would be $4.77 million per year. Your upfront setup costs to be ready to produce the part would be $8.05 million. Your discount rate for this contract is 8.4%. a. What does the NPV rule say you should do? b. If you take the contract, what will be the change in the value of your firm? a. What does the NPV rule say you should do? The NPV of the project is $ million. (Round to two decimal places.) What should you do? (Select the best choice below.) O A. The NPV rule says that you should not accept the contract because the NPV 0. O C. The NPV rule says that you should accept the contract because the NPV 0. b. If you take the contract, what will be the change in the value of your firm? If you take the contract, the value added to the firm will be $ million. (Round to two decimal places.) 5. You are considering opening a new plant. The plant will cost $95.7 million up front and will take one year to build. After that it is expected to produce profits of $31.6 million at the end of every year of production (starting two years from now). The cash flows are expected to last forever. Calculate the NPV of this investment opportunity if your cost of capital is 8.6%. Should you make the investment? Calculate the IRR and use it to determine the maximum deviation allowable in the cost of capital estimate to leave the decision unchanged. The NPV of the project will be $ million. (Round to one decimal place.) You (1) make the investment. (Select from the drop-down menu.) The IRR is %. (Round to two decimal places.) The maximum deviation allowable in the cost of capital estimate is 1%. (Round to two decimal places.) (1) O should not should

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