Question: Show how to do it on excel The initial outlay or cost is $1,200,000 for a four-year project. The respective future cash inflows for years

Show how to do it on excel

The initial outlay or cost is $1,200,000 for a four-year project. The respective future cash inflows for years 1, 2, 3 and 4 are $500,000, $400,000, $300,000 and $200,000. What is the NPV (Net Present Value) of the project if the discount rate is 8%

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!

The initial outlay or cost is $1,000,000 for a four-year project. The respective future cash inflows years 1, 2, 3 and 4 are: $500,00, $300,000, $300,000 and $300,000. What is the payback period...

70) Both assets B and C plot on the SML. Asset B has a beta of 1.3 and an expected return of 13.1%. Asset C has a beta of .50 and an expected return of 7.50%. The risk-free rate is 4% and the...

18) Mary owns the following portfolio of securities. What is the beta for the portfolio? Company Beta Percent of Portfolio Apple 2.50 25% Wells Fargo 0.65 50% Ebay 1.70 25% 18) ______ 19) Assume the...

$80,000. Th 1) Birdman, Inc. is currently considering an eight-year project that has an initial outlay or cost of future cash inflows from its project for years 1 through 8 are the same at $30,000....

21) Fox, Inc. is considering a five-year project that has initial after-tax outlay or after-tax cost of $170,000. The future after-tax cash inflows from its project for years 1 through 5 are $45,000...

1) Given an expected market return of 12.0%, a beta of 0.75 for Benson Industries, and a risk-free rate of 4.0%, what is the expected return for Benson Industries? A) 9.0% B) 10.0% C) 4.0% D) 13.0%...

19) Assume the following information about the market and CrashMasters' stock. CrashMasters' beta = 1.50, the risk-free rate is 3.50%, the market risk premium is 10.0%. Using the SML, what is the...

ANSWER THE FOLLOWING: SHOW WORK 24) In a stream of past dividends, the initial dividend is $1.25 and the most recent dividend is $1.80. The number of years between these two dividends (n) is 9 years....

You want to invest in a stock that pays a$7.00annual cash dividend for the nextfouryears. At the end of that time, you will sell the stock for$140.00. If you want to earn8%on this investment, what is...

Question 27 6 points sa Dakota, Inc. is currently considering an three-year project that has an initial outlay or cost of $230,000. The cash inflows from its project for years 1 through 3 are the...

It is generally assumed that alcohol consumption tends to make drinkers more impulsive. However, a recent study in the journal Alcohol and Alcoholism may contradict this assumption. The study took a...

Oligopoly and Game Theory: End of Chapter Problem a. Lets look at the market for one kind of apple: Gala. Assume that there are 300 producers of Gala apples and that MC=AC=$0.40 per pound . In a...

Identify the audio file formats that can be compressed. a . OGG b . MP 3 c . WAV d . AIFF

Add "Viggo Mortenslet cast = new Map ( ) ;en " to the cast as the key, with value "Aragorn".