Question: Net Present Value Compute the Net Present Value for the following Project. Initial investment $15,000 Interest rate: 13% Cash Inflow Table is given below: Year

Net Present Value

Compute the Net Present Value for the following Project.

Initial investment $15,000

Interest rate: 13%

Cash Inflow Table is given below:

Year Cash Inflow
1 $1000
2 $2500
3 $4000
4 $4500
5 $5000
6 $4500

a) What is the breakeven point in months?

b) What is the present value of the cash inflows each year?

c) What is the total present value of the project?

d) What is the net present value?

e) What is the Internal Rate of Return?

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 General Management Questions!

Q:

INDIVIDUAL WORK Net Present Value Compute the Net Present Value for the following Project. Initial investment $ 3 9 , 0 0 0 Interest rate: 1 5 . 7 % Cash Inflow Table is given below: a ) What is the...

Q:

CHAP 22/26 **IF YOU ARE NOT GOING TO ANSWER EACH QUESTION, PLEASE SKIP MY POST!!! THANK YOU** 1) Armstrong Bike Repair Shop has budgeted the following time and material for 2017. Armstrong budgets...

Q:

What is the annual cost of waste for Marriott Marquis in recent years? Mid-term Project (Due date: October 12, Monday) Total Points: 20 points Benefit of Sustainability: Cost saving approach...

Q:

Please help me with the answer and explain how you got it. QS 11-14 (Algo) Net present value of an annuity LO P3 Pena Company is considering an investment of $27.215 that provides net cash flows of...

Q:

Need help filling out the finance workheets attached. Adapted by Robert Timmons, D.B.A. 2010 - 2015 Managerial Finance BUS 8003 Chapter 4 Selected Problems 2-26 Printer Friendly NOTE: The problem...

Q:

See attached document. I only need 2, 4, 8, and 10 done Assignment 5 Modules 1 - 5 Spring 2014 Math 183 1. An investor makes payments of 8000 at times 0 and t and receives returns of 900 at times 1,...

Q:

See attached document. I only need 2, 4, 8, and 10 done Assignment 5 Modules 1 - 5 Spring 2014 Math 183 1. An investor makes payments of 8000 at times 0 and t and receives returns of 900 at times 1,...

Q:

Smarter Bowling is buying a new polishing machine to replace the old, worn - out one. Compute the profitability index, rounded to two decimal places. Optional Compu Compute the payback period,...

Q:

Interstate Manufacturing is considering either replacing one of its old machines with a new machine or having the old machine overhauled. Information about the two alternatives follows. Management...

Q:

Interstate Manufacturing is considering either replacing one of its old machines with a new machine or having the old machine overhauled. Information about the two alternatives follows. Management...

Q:

Watch It Inc. (WI) designs and manufactures luxury custom watches across Ontario and has a November 30th year-end. During the 2021 fiscal year, WI has signed a contract with Fashion & Style Ltd. to...

Q:

Write the Python code to calculate the major that admitted the fewest students and leave a single row of that major as the only row in the DataFrame df_applicants. Your solution must include only a...

Q:

13.13 If SSR = 29 and SST = 104 for a set of 17 observations, determine the standard error of the estimate, SXY, and interpret its meaning.

Q:

To resolve a dispute, Amy in Boston and Chris in Denver utilize E - Solution, an online dispute resolution ( ODR ) service. This limits these parties' recourse to the courts

Q:

To realize business outcomes before and after HRM adoption.

Q:

How does the Cypriot context affect these issues at Zenon University? (Further reading about Cyprus or the southern European context may be needed). How do these issues relate with an institutional...

Q:

Identify HRM practices that can facilitate the promotion of female academics.