What is the net present value of a project that has an initial cash outflow of...
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What is the net present value of a project that has an initial cash outflow of $21,000 and the following cash inflows if the required return is 12 %? should we accept the project? Years Cash Inflows 1 $8,500 2 $7,120 3 $6,450 4 $4,900 Calculate the IRR of an investment that costs $77,500 and generates cash flow of $27,500 a year for four years? When should we accept the project? You discover the engine-oil additive your scientists developed three years ago makes a great men's after-shave once diluted properly using certain chemicals. If you want to assess today if you should go ahead with the production of this after-shave or not, would you consider the original $125,000 of R&D expenditures that went into developing the engine-oil additive as a relevant cash outflow in your assessment? Explain. What is the net present value of a project that has an initial cash outflow of $21,000 and the following cash inflows if the required return is 12 %? should we accept the project? Years Cash Inflows 1 $8,500 2 $7,120 3 $6,450 4 $4,900 Calculate the IRR of an investment that costs $77,500 and generates cash flow of $27,500 a year for four years? When should we accept the project? You discover the engine-oil additive your scientists developed three years ago makes a great men's after-shave once diluted properly using certain chemicals. If you want to assess today if you should go ahead with the production of this after-shave or not, would you consider the original $125,000 of R&D expenditures that went into developing the engine-oil additive as a relevant cash outflow in your assessment? Explain.
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Answer rating: 100% (QA)
Net Present Value for the first project NPV 21000 850010121 712010122 645010123 490010124 NPV 21000 ... View the full answer
Related Book For
Essentials Of Corporate Finance
ISBN: 9780073382463
7th Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
Posted Date:
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