Question: please help with both 10. Using the cash flow values in the table below, calculate the Net Present Value (NPV). Assume a discount rate of
please help with both
10.
Using the cash flow values in the table below, calculate the Net Present Value (NPV).
Assume a discount rate of 7.6%.
| Year | Cash Flow |
| 0 | -$39,000 |
| 1 | 5,559 |
| 2 | 13,000 |
| 3 | 9,000 |
| 4 | 11,000 |
| 5 | 8,376 |
Do not round intermediate values. Enter your answer as a number with 2 decimal places of precision (i.e. 1.23). Do not enter dollar signs or commas. Precede negative NPVs with a minus sign.
24.
The relative risk of a proposed project is best accounted for by which of the following procedures?
| a. | Adjusting the discount rate (WACC) upward if the project is has below-average risk. | |
| b. | Picking a risk factor equal to the average discount rate. | |
| c. | Reducing the NPV by 10% for risky projects. | |
| d. | Adjusting the discount rate (WACC) upward if the project is has above-average risk. | |
| e. | Ignoring risk because project risk cannot be measured accurately. |
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