A project has an initial outlay of $1.035. The project will generate cash flows of $504 in Years 1-3. What is the profitability index P of this project? Assame an interest rate of 6% Note Enter your answer rounded off to two decimal points
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Aa 18.
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- Olive Company is considering a project that is estimated to cost $275,500 and provide annual net cash flows of $65,523 for the next five years. Required: What is the internal rate of return for this project? Note: Round your answer to 2 decimal places. Intermat Rate of ReturiSuppose an investment has an initial capital cost of $1100, an ongoing cost of $6.50 per year and an annual benefit of $80. If the project lasts for 20 years and the discount rate is 7%, the internal rate of return is: Provide your answer in percentage form (e.g. an IRR of 17.66% should be entered as 17.66) to 2 decimal places. Do not include any $ or % 's in your response.A project has an initial cost of $35,000, expected net cash inflows of $8,000 per year for 7 years, and a cost of capital of 11%. What is the project's discounted payback period? (Hint: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to two decimal places.
- Find the profitability index of a project with the following cash flows using a discount rate of 4%: Period 0: -1000 Period 1: 793 Period 2: 391 Period 3: 204 Round your answer to the nearest one-hundredth.An investment opportunity requires an initial cash outlay of $70,000. Thereafter, it is expect to earn profits of $15,000 per year for 6 years. Calculate the IRR for the investment. Express your answer as a percent rounded to 2 decimal places but don't include the % sign. Your Answer:Consider a project with an initial investment (today, t = 0) of $225,000. This project will generate cash flows of $68,750 per year for the next 6 years. The company will pay $50,000 to another for clean-up and disposal in Year 6. What is the Profitability Index (PI) of the project if shareholders demand 8.25% return? Answer in whole numbers, rounded to three decimal places.
- Assume that it costs $1,000 to start a project. If the project will give $400 profit in the first year, $500 in the second year and $300 in the third year. find the payback period. Now assume that the interest rate is 10%, find the net present value (NPV) and the profitability index (PI) for this project(Payback period, net present value, profitability index, and internal rate of return calculations) You are considering a project with an initial cash outlay of $76,000 and expected cash flows of $22,040 at the end of each year for six years. The discount rate for this project is 9.8 percent. a. What are the project's payback and discounted payback periods? b. What is the project's NPV? c. What is the project's Pl? d. What is the project's IRR? a. The payback period of the project is years. (Round to two decimal places.)Jones expects an immediate investment of $73,759.50 to return $15,000 annually for six years, with the first payment to be received one year from now. What rate of interest must Jones eam? (PV of $1. EV of $1. PVA of $1. and EVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) Table Factor Interest Rate Present Value Annuity Payment
- An investment costs $100 and it promises $50 in 3, 4, 5, 6 and 7 years. What is the return of this investment? Answer in decimal form using four decimal digitsCalculate the MIRR for a project where the WACC is 6%. Invest: $95 today plus $30 at the end of year 2. Returns: $33, 40, 43, and 45 to be received at the end of years 1, 2, 3, and 4 respectively. (Draw a timeline and express your answer as a % carried to 1 decimal place.)Your company is considering a capital project that will require a net initial investment of $264,978. The project is expected to have a 7-year life and will generate an annual net cash inflow of $46,260. Using the present value tables, what is the internal rate of return? (Round answers to 0 decimal places, e.g. 25.) Click here to view the factor table. Internal Rate of Return eTextbook and Media