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- Project X costs $10,000 and will generate annual net cash inflows of $4,800 for five years. What is the NPV using 8% as the discount rate?An investment of P350,000 is made to be followed by payments of P200,000 each year for 3 years. What is the annual rate of return on investment for the project? Please include cash flow diagram.Find the present value of a cash flow stream which pays $5000 at the end of every year for 15 years at an interest rate of 9%?
- For how many years must an investment of Php63,000 provide a continuous flow of funds at the rate of Php16,000 per year so that nominal rate of 10% continuously compounded, will be earned?Answer the following: Show the cash flow diagram and solutions. I recieve PHP 500K 15 years from now. What amount should i invest if it will earn interest of 16% compounded annually during the 7years and 12 compounded quarterlyduring the next 7years?An investment project provides cash inflows of $ 504 per year for 5 years. What is the NPV of the project if the initial cost is $ 1,082 , assuming a 12.5 percent required rate of return?
- What is the present value of a perpetuity stream of cash flows that pays P1,000 at the end of year one, and the annual cash flows grow at a rate of 4% per year indefinitely, if the appropriate discount rate is 8%?Determine the present worth of a maintenance contract that has a cost of $30,000 in year 1 andannual increases of 6% per year for 10 years. Use an interest rate of 6% per year. Draw a cash flow diagram.What is the present value of a cash flow stream of 1,000 per year annually for 12 years that then grows at 4.6% per year forever
- What is the present value of a $400,000 cash flow to be received at the end of each of the next 10 years from an account that earns an annual rate of 9%?Based on the following table, what is the approximate Internal Rate of Return (IRR) for a project that costs $189,000 and provides annual cash inflows of $70,000 for 3 years? (See your Chapter 25 notes, page 8) Rate of Present Value of an AnnuityReturn of $1 Received for Three Years 4% 2.8 6% 2.7 8% 2.6 10% 2.5 12% 2.4 14% 2.3 16% 2.2 20% 2.1 16 percent 10 percent 8 percent 14 percent 4 percent 20 percent 12 percent 6 percentCalculate the net present value of a project which requires an initial investment of ₱1,000,000 with a 5% discount rate. Net cash flows for six years of the investment are ₱250,000 with each cash flow occurring at the end of the year. What is the PV of the cash flows? What is the NPV of the project? Should the project be accepted?