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- Nick is considering a capital investment that costs $525,000 and will provide the following net cash inflows: Year Net Cash Inflow 1 $298,000 2 $202.000 3 $104,000 1) Using hurdle rate of 10%, find the NPV of the investment 2) Find IRR of the capital investment.An investment project requires an initial cash outlay of $800 and then generates the following cash flows. End of year 1: $200 End of year 2: $ 300 End of year 3: $500 What is the IRR of this project?The given amount of annual interest is earned from a total of $8,000 invested in two funds paying simple interest. Write and solve a system of equations to find the amount invested at each given rate.
- 7. Consider the following table for the cash flows of an investment account: Time mm/dd/yy 01/01/2015 04/01/2015 08/01/2015 12/31/2015 Contribution -300 +2,000 (a) Calculate the TWRR and the DWRR of the fund. (b) Comment on the results. Fund value before contribution 1,000 500 250 2,800If the OCF is $500; Net Capital Spending = $450; and Additions to NWC = $200; Find the Cash Flow from Assets.How to solve a problem when they give you the liability amount $120000 and the equity $232k and they ask to fund the total assets?
- Three investments cost $500,000 each and have the following cash flows (refer to image): Rank them on the basis of their payback periods. Does the ranking make intuitive sense?If the present value of future cash flows is $4,200 for an investment that requires an outlay of $3,000, the NPV Is $200 Is $1,000 $1,200 Is $2,200 Cannot be determinedThe future cash flows of a stand-alone capital project follow: If the cost of capital is 14%, what is the NPV of the project? (your financial calculator with cash flow journal helps here!) year 0 1 2 3 cash flow ($5000) $2500 $2500 $ 2500 $5804 $804 $6217 $1217
- Suppose you have the following information for a project. Year Before-Tax Income After-Tax Cash Flows Taxes Cash Flows 0 12345 -1000 500 340 244 100 100 -72 -33.6 -10.56 24 24 Calculate the present worth of after-tax cash flows. Use an interest rate of 8%. Round your answer to 2 decimal places.Assume a $50,000 investment and the following cash flowa for two aleternatives.. Year Investment A Investment B 1 $10,000 $20,000 2 $11,000 $25,000 3 $13,000 $15,000 4 $16,000 5 $30,000 Which alternative would you select under the payback method? 6Mendez Company has identified an investment project with the following cash flows. Year Cash Flow 1 $ 810 2 1,110 3 1,370 4 1,500 a. If the discount rate is 11 percent, what is the present value of these cash flows? b. If the discount rate is 17 percent, what is the present value of these cash flows? c. If the discount rate is 25 percent, what is the present value of these cash flows?