Evaluate the following investment project according to the Discounted Payback Period (DPP) and QUESTION 3. NPV, and advise the management whether it should be accepted or rejected. The weighted average cost of capital (WACC) of the firm is 21%. YEAR CASH OUTFLOWS 100.000 100.000 YEAR CASH INFLOWS 70.000 80.000 100.000 150.000 200.000 50.000 Salvage Value L407 DRO 12345

Evaluate the following investment project according to the Discounted Payback Period (DPP) and QUESTION 3. NPV, and advise the management whether it should be accepted or rejected. The weighted average cost of capital (WACC) of the firm is 21%. YEAR CASH OUTFLOWS 100.000 100.000 YEAR CASH INFLOWS 70.000 80.000 100.000 150.000 200.000 50.000 Salvage Value L407 DRO 12345

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter12: Capital Investment Analysis

Section: Chapter Questions

Problem 1CMA

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Evaluate the following investment project according to the Discounted Payback Period (DPP) and QUESTION 3. NPV, and advise the management whether it should be accepted or rejected. The weighted average cost of capital (WACC) of the firm is 21%. YEAR CASH OUTFLOWS 100.000 1 100.000 YEAR CASH INFLOWS 70.000 80.000 100.000 150.000 200.000 50.000 Salvage Value 1234 5
QUESTION 3. NPV, and advise the management whether it should be accepted or rejected. The weighted average cost of capital (WACC) of the firm is 21%. Evaluate the following investment project according to the Discounted Payback Period (DPP) and YEAR CASH OUTFLOWS 100.000 1 100.000 YEAR CASH INFLOWS 1 70.000 80.000 3 100.000 4 150.000 200.000 Salvage Value 50.000
QUESTION 3. NPV, and advise the management whether it should be accepted or rejected. The weighted average cost of capital (WACC) of the firm is 21%. Evaluate the following investment project according to the Discounted Payback Period (DPP) and CASH OUTFLOWS 100.000 100.000 YEAR 1. CASH INFLOWS 70.000 80.000 100.000 150.000 200.000 50.000 YEAR 1. 2 4. Salvage Value SHOT ON MI 10T PRO
Calculate the HPR of the following investment, entered as a percentage (Example: if your answer is 14.5%, enter 14.5 and not 0.145) Period Cashflow 0 -14100 1 3300 2 3300 3 3100 4 2800
please colud you explain me what how you using calculator or computation to determine NPV or IRR. A firm has the following investment alternatives: Year A B C 1 $400 $--- $-- 2 400 400 --- 3 400 800 --- 4 400 800 1,800 Each investment costs $1,400, and the firm's cost of capital is 10 percent. a. What is each investment's internal rate of return? b. Should the firm make any of these investment? c. What is each investment's net present value? d. Should the firm firm make any of these investments?
Consider the following projects: Cash Flows ($) Project D E CO00 C101 -11,700 23,400 -21,700 37,975 Assume that the projects are mutually exclusive and that the opportunity cost of capital is 12%. a. Calculate the profitability index for each project. b-1. Calculate the profitability-index using the incremental cash flows. b-2. Which project should you choose?
pls on ur own .Balentine company has been presented with an investment opportunity that will yield the following cash flow as given below. the company appropriate wacc is 4%. years 0 1 2 3 cash flow -1000, 500 ,900 ,100 the internal rate of return for this investment opportunity is closest to?
A firm has two possible investment with the following cash inflows. Each investment cost $480, and the cost of capital is ten percent. Cash Inflows Year A B 1 $300 $200 2 200 200 3 100 200 a. Based only on visual inspection, which investment is to be preferred and why? b. Based on each investment’s net present value, which investment(s) should the firm make? c. Based on each investment’s internal rate of return, which investment(s) should the firm make? Is this the same answer you obtained in part b? d. If the cost of capital were to increase to 14 percent, which investment(s) should the firm make?
Hi can you help with this question please? An investment has the following cash flow profile. For each value of MARR below, what is the minimum value of X such that the investment is attractive based on an internal rate of return measure of merit? EOY 0 1 2 3 4 Cash Flow $(30,000.00) $ 6,000.00 $ 13,500.00 $X $ 13,500.00 MARR is 12 percent/year
Q.1. Three mutually exclusive investment alternatives are under consideration. The initial capital outlays and the pattern of the net annual cash benefits (revenues - expenses) for each alternatives are presented in the following table. Based on NPV analysis, if the company’s minimum acceptable rate of return is 10%, which alternative should be the best economic choice? Use appropriate IRR analysis to double-check your selection. Investment, M$ A B C Initial cost -$200 -$350 -$500 Net Revenues, year 1 to 3 $80 $105 $85 Net Revenues, year 4 $60 $90 $150 Net Revenues, year 5 $40 $80 $250
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Profitability index. Given the discount rate and the future cash flow of each project listed in the following table, . use the Pl to determine which projects the company should accept. What is the Pl of project A? i Data Table (Round to two decimal places.) (Click on the following icon o in order to copy its contents into a spreadsheet.) Cash Flow Project A -%241,900,000 $150,000 $350,000 Project B Year 0 $2,300,000 $1,150,000 $950 000 $750,000 $550,000 Year 1 Year 2 Year 3 $550,000 Year 4 $750,000 $950,000 4% Year 5 $350.000 Discount rate 18% Print Done