Net present value Using a cost of capital of 14%, calculate the net present value for...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Net present value Using a cost of capital of 14%, calculate the net present value for the project shown in the following table and indicate whether it is acceptable, The net present value (NPV) of the project is $ (Round to the nearest cent) enet into a spreadsheet.) Initial investment (CF) Year (t) 1 2 3 4 6 7 8 9 10 Print 1,148,000 Cash inflows (CF₂) $83,000 $138,000 $192,000 $259,000 $313,000 $385,000 $271,000 $100,000 $42,000 $22,000 Done K NPV Calculate the net present value (NPV) for a 10-year project with an initial investment of $30,000 and a cash inflow of $5,000 per year Assume that the firm has an opportunity cost of 14% Comment on the acceptability of the project The project's not present value is $ (Round to the nearest cent) C Net present value Using a cost of capital of 14%, calculate the net present value for the project shown in the following table and indicate whether it is acceptable, The net present value (NPV) of the project is $ (Round to the nearest cent) enet into a spreadsheet.) Initial investment (CF) Year (t) 1 2 3 4 6 7 8 9 10 Print 1,148,000 Cash inflows (CF₂) $83,000 $138,000 $192,000 $259,000 $313,000 $385,000 $271,000 $100,000 $42,000 $22,000 Done K NPV Calculate the net present value (NPV) for a 10-year project with an initial investment of $30,000 and a cash inflow of $5,000 per year Assume that the firm has an opportunity cost of 14% Comment on the acceptability of the project The project's not present value is $ (Round to the nearest cent) C
Expert Answer:
Answer rating: 100% (QA)
Calculating Net Present Value NPV and determining whe... View the full answer
Related Book For
Chemistry The Central Science
ISBN: 978-0321696724
12th edition
Authors: Theodore Brown, Eugene LeMay, Bruce Bursten, Catherine Murphy, Patrick Woodward
Posted Date:
Students also viewed these accounting questions
-
Calculate the NPV and IRR for the project Round your IRR answers to the nearest whole percentage value for example 156 rounds to 16 and should be entered as 16 in the answer box If the NPV is...
-
For each type of adjustment listed, indicate whether it is an unrecorded receivable, an unrecorded liability, an unearned revenue, or a prepaid expense at December 31, 2012. 1. Property taxes that...
-
3 4 5 6 7 8 9 10 11 12 13 A 14 Cost of the Asset 15 Life of the Asset in Years 16 Book Value of the Asset after 5 years 17 Depreciable Basis 18 Yearly depreciation 19 After tax Salvage Value in year...
-
Track a futures contract for 5 consecutive days record the prices and write a short summary (150-200 words) describing how and why prices moved the way they did. You will be graded upon correctly...
-
Starbucks Corp., the passionate purveyors of coffee and everything else that goes with a full and rewarding coffeehouse experience, included the following table in its 2009 annual report: Total stock...
-
Your firms client, Toys R Us, Inc., has discovered a Web site www.adultsrus.com that provides pornographic pictures. What type of action might Toys R Us bring against the operator of the site?
-
Refer to the information in Exercise 17-1. Assume that the following information is available for the companys two products for the first quarter of 2017. Required Compute activity rates for each...
-
The chart of accounts of LR Company includes the following selected accounts. 112 Accounts Receivable ......401 Sales Revenue 120 Inventory ...........412 Sales Returns and Allowances 126 Supplies...
-
The technical support call centre for a software company has a mean wait time of 210 s, with a standard deviation of 40 s. The management team wants to continue to improve customer satisfaction by...
-
State Bank's balance sheet is listed below. Market yields and durations (in years) are in parenthesis, and amounts are in millions. a. What is the repricing gap if the planning period is six months?...
-
If you were to enter the banking industry, you might find yourself approving or not approving loans. The following is a good example of a common event you could encounter. Company X is looking for...
-
As shown in the figure 1 about the pulley - spring mass system, where R=2r. please to calculate its equivalent mass (excluding spring mass) and equivalent stiffness of this system (Note: values of k,...
-
4. Hot gases enter a parallel-flow heat exchanger at 420 C and leave at 240 C, heating 20 kg/s of water from 30 C to 80 C. The overall heat transfer coefficient is 55 W/m-K. What is the area of the...
-
Given the inside and outside radius of the footprint of a cylindrical robot workspace, calculate the maximum rectangular area that the robot can reach while fitting a maximum workbench in the robot...
-
A two-degree-of-freedom mechanical system with five springs and two masses is shown in the Fig.7, and F and F2 are exciting force respectively. Please determine: (1) The equation of motion; (2) The...
-
Q1. Subtractive cancellation occurs when two nearly equal numbers are subtracted. This is a common cause of noticeable round-off error. Let's see how this affects numerical differentiation. a) Write...
-
Wellington Company had the. following current liabilities transactions during 2022 Transactions: Sept 1, Provided services for customers who had an advance payment of $9,000 Oct 1, Sold merchandise...
-
On January 1, 2017, McIlroy, Inc., acquired a 60 percent interest in the common stock of Stinson, Inc., for $340,200. Stinson's book value on that date consisted of common stock of $100,000 and...
-
In your own words, define the following terms: (a) Allotrope (b) Disproportionation (c) Interhalogen (d) Acidic anhydride (e) Condensation reaction (f) Protium.
-
Give the symbol for (a) A proton, (b) A beta particle, (c) A positron.
-
Explain the difference between a diamagnetic substance and a paramagnetic substance.
-
Classify each of the following as either a policy instrument or an intermediary target. Explain your answer. a. Long-term interest rates b. Central bank interest rates c. M2 d. Reserve requirements
-
The New York Fed executes foreign exchange interventions for the Federal Reserve system. Go to https://www.newyorkfed.org/markets/quar_reports.html to see quarterly summaries of the Feds foreign...
-
The New Zealand dollar to U.S. dollar exchange rate is 1.38, and the British pound to U.S. dollar exchange rate is 0.65. If you find that the British pound to New Zealand dollar is trading at 0.5,...
Study smarter with the SolutionInn App