Year cash flow

1 8000

2 0

3 8000

a. What is the net present value of a project that has an initial cash outflow of $10,000 and the following cash inflows? The required return is 11%.

b. What is the profitability index of a project that has an initial cash outflow of $10,000 and the following cash inflows? The required rate of return is 11%

c. What is the Modified IRR of a project that has an initial cash outflow of $10,000 and the following cash inflows? The required rate of return is 11%.

question 2

year cash

1 1000

2 2000

3 3000

4 4000

a. What is the present value of the following cash flows if the opportunity cost is 10%?

b. What is the future value for the following cash flows at the end of year 4? Given an opportunity cost of 10%

c. What is the future value of the following cash flows at the end of 10 years, assuming an opportunity cost of 10%?

Answer rating: 100% (QA)

a To calculate the net present value NPV of the project we need to discount each cash flow to its present value and then subtract the initial cash outflow The required return is 11 Using the formula f... View the full answer