Please Solve In 20mins Exercise 11-7 (Algo) Net present value and unequal cash flows LO P3Gomez is considering a $210,000 investment with the following net cash flows. Gomez requires a 15% return on its investments. (PV of$1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)Year 2$54,000Year 1Year 3Year 4Year 5Net cash flows$86,000$99,000$163,000$38,000(a) Compute the net present value of this investment.(b) Should Gomez accept the investment?Complete this question by entering your answers in the tabs below.Required ARequired BCompute the net present value of this investment. (Round your answers to the nearest whole dollar.)Net CashFlowsPresentValue of 1at 15%Present Valueof Net CashFlowsYearYear 1Year 2Year 3Year 4Year 5Totals$Initial investmentNet present value< Required ARequired B >

Net present value is difference between present value of cash flow and initial investment and should…

ercise 11-7 (Algo) Net present value and unequal cash flows LO P3 hez is considering a $210,000 investment with the following net cash flows. Gomez requires a 15% return EV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Year 1 Year 2 Year 3 Year 4 Year 5 t cash flows $86,000 $54,000 $99,000 $163,000 $38,000 Compute the net present value of this investment. Should Gomez accept the investment?

ercise 11-7 (Algo) Net present value and unequal cash flows LO P3 hez is considering a $210,000 investment with the following net cash flows. Gomez requires a 15% return EV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Year 1 Year 2 Year 3 Year 4 Year 5 t cash flows $86,000 $54,000 $99,000 $163,000 $38,000 Compute the net present value of this investment. Should Gomez accept the investment?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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11:52 Investment Appraisal (Year 2 Column 2... 35% 4. An investment has the following cash flows. What is the ARR? Year 0 -90,000 Year 1 45,000 10,000 Year 2 Year 3 30,000 30,000 Year 4 6% 7% 9% 5. Which of the following investments would you choose based on payback? Project 3 years 6 months 5 years 10 months A В ... Activity Chat Teams Assignments More
Year Cash Flow (A) Cash Flow (D) $- -$ 0 348,000 51,000 1234 47,000 24,200 2 67,000 22,200 67,000 19,700 14,800 442,000 Whichever project you choose, if any, you require a return of 14 percent on your investment. a-1.What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Project A Project B Payback period years years a- 2. If you apply the payback criterion, which investment will you choose? O Project A O Project B b- What is the discounted payback period for each project? (Do not round intermediate 1. calculations and round your answers to 2 decimal places, e.g., 32.16.)
Year Cash Flow (A) Cash Flow (B) 0 −$ 417,000 −$ 36,000 1 48,000 19,600 2 58,000 14,100 3 75,000 14,600 4 532,000 11,400 The required return on these investments is 13 percent. What is the payback period for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. What is the NPV for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. What is the IRR for each project? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. What is the profitability index for each project? Note: Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161. Based on your answers in (a) through (d), which project will you finally choose?
Problem 8-6 Profitability Index (LO3) The following are the cash flows of two projects: Year Project A Project B $ (270) $ (270) 1 150 170 2 150 170 3 150 170 4 150 If the opportunity cost of capital is 12%, what is the profitability Index for each project? Note: Do not round Intermediate calculations. Round your answers to 4 decimal places. Project A B Profitability Index
Investment Opportunity Cash Flows in $ 1 3 1,100 $ (500) $ Suppose you are presented with the investment opportunity described in the table above Assume the applicable annual interest rate is 4.75% Calculate the NPV of this investment. Round your answer to two decimals (Do not include the S-sign in your answer, enter negative values with a minus sign and not in parentheses) Year Benefits Costs 2731.16 0 $ $ 350 $ $ (1,100) $ (1,300) $ 2 500 $ (1,500) $ 4 1,500 $ (400) 5 5,000
Problem 6. Justine Global Info Tech records the following cash flows at the end of each year for a project. If the firm's discount rate is 11%, what is the PRESENT VALUE of the project? Year Cash Flow 1 P794,633.00 P542,149.00 P836,200.00 P716,080.00 P520,354.00 2 3 4 5
Problem 2 ABM Enterprise would like to evaluate/analyze an investment proposal. Given the following: Investment amount 450,000 (2022) Dividends / Revenue stream - 100,000 for the first year and an interval of 5,000 for the succeeding years Discount rate - 14% a. NPV for the perio 2023 through 2029; b. Total NPV using manual computation; c. Total NPV using the Excel function; and d. IRR rate.
ces Year 0 1 Cash Flow (A) -$430,000 41,500 2 64,500 3 81,500 4 545,000 Cash Flow (B). -$ 42,500 20,900 12,800 21,100 17,900 The required return on these investments is 10 percent. a. What is the payback period for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. b. What is the NPV for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. c. What is the IRR for each project? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e. d. What is the profitability index for each project? Note: Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161. e. Based on your answers in (a) through (d), which project will you finally choose? a. Project A Project B b. Project A Project B years years Q Search < Prev 5 of 5 Next L
Problem 8-6 Profitability Index (LO3) The following are the cash flows of two projects: Project B $ (350) 250 250 250 Year 0 1 2 434 Project A $ (350) 180 180 180 180 If the opportunity cost of capital is 11%, what is the profitability index for each project? Note: Do not round intermediate calculations. Round your answers to 4 decimal places. Answer is complete but not entirely correct. Profitability Index Project A B 1.5955 1.7455
Year Amount $20,000/yr. 35,000/yr. 1-5 6-10 Find the present value of cash flows, assuming that the firm's opportunity cost is 14 percent. Lütfen birini seçin: a. $120,820 O b. $131,065 c. $ 14,850 d. $ 19,830
QUESTION 8 The INTERNAL RATE OF RETURN for the project shown above is: O 3.92% O 13.25 O 15.17% 9 21.22% O No IRR QUESTION 9
QUESTION 6 Seaborn Co. has identified an investment project with the following cash flows. Year Cash Flow $950 1,050 1,320 1,200 1 2 3 4 If the discount rate is 10 percent, what is the present value of these cash flows? 3542.76 3578.84 3418.66 4470.00 3847.03 Click Save and Submit to save and submit. Click Save All Answers to save all answers. SEP 28 30 tv ♫ A

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