(iii) M/S Azra and Co. analyzed a project as follow: 05 NPV is Rs. 57631 at 24% discount rate NPV is Rs. (-) 38014 at 28% discount rate Determine the internal rate of return of the project.
Q: Consider a project with the following cash flows: Year Cash Flow - 8000 1 3200 2 3200 3 3200 4 3200…
A: Capital budgeting techniques are used to analyze the profitability of long term projects and…
Q: 9-16 Compute the (a) net present value, (b) internal rate of return (IRR), and (c) discounted…
A: Net present value is the difference between the present value of cash inflows and present value of…
Q: At what discount rate does the following project have a positive NPV of exactly $1,000?
A: Net present value (NPV) of an alternative/project refers to the variance between the initial…
Q: Consider the following two mutually exclusive projects: If the discount rate is 10%, what are the…
A: NPV is the difference between present value of all cash inflows and initial investment. IRR is a…
Q: An equipment with a cost of P 100 000 is expected to generate returns of P 90 000; P 60 000 and P 50…
A: Discount rate = 12% Equipment cost = P100,000 Return in year 1 = P90,000 Return in year 2 = P60,000…
Q: Calculate PB, DPB, NPV, IRR and PI for the following project with a discount rate of 12% - initial…
A: Capital budgeting indicates the evaluation of the profitability of possible investments and projects…
Q: Here are the cash flows for a project under consideration: C0 C1 C2 −$7,510 +$5,420…
A: a) Computation of NPV is as follows: Hence, the NPV is $17110. Working note:
Q: Two projects, Y and Z, have the following cash flows: Year Project Y Project Z 0 -500 -1700…
A: Payback(PB) Period shows time in which initial outlay for any proposal is completely recovered from…
Q: Lobers, Inc., has two investment proposals, which have the following characteristics: PROJECT A…
A: Capital budgeting is the process with the help of which a corporation makes capital budgeting…
Q: Tri Star, Inc., has the following mutually exclusive projects: Year Project A Project B 0 –$…
A: Calculation of Payback Period and Net Present Value:The payback period for Project A is 1.92 years…
Q: Uroboros Inc. is considering a project that has the following cash flow data. Assuming a WACC of…
A: A method of capital budgeting that helps to evaluate the time period a project requires to cover its…
Q: Net PRresnt value- Citron Industries has a project with the following projected cash flow Initial…
A: Net Present Value- The net present value demonstrates its applicability in capital budgeting. It…
Q: Q7 - Consider the following project: Year Cash Flow 0 – $ 3,024…
A: Given information: Year Cash Flow 0 -3,024 1 17,172 2 -36,420 3 34,200 4 -12,000
Q: Consider a project with the following cash flows: End of Year (n) Cash Flows ($)0…
A: Capital budgeting indicates the evaluation of the profitability of possible investment and projects…
Q: Compute the discounted payback statistic for project C if the appropriate cost of capital is 7% and…
A: Discounted Payback(PB) Period shows the time period in which present values(PV) of all cash inflows…
Q: A Project requires a current investment of $1,760.00 and yields future expected cash flows of…
A: Net present value (NPV) is the difference between the present value of cash inflows and cash…
Q: The net cash flows of two alternative projects that require an investment of 120,000 TL are as…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: You are considering two mutually exclusive projects with the following cash flows. The discount rate…
A: Pay back period is the amount of years required to recover the initial investment of the project and…
Q: You are considering two independent projects both of which have been assigned a discount rate of…
A: Accept project if NPV is positive and reject project if NPV is negative
Q: Consider the following cashflow of the two mutually exclusive projects. Assume that the discount…
A: The term net present value or NPV refers to the value left after deducting the initial investment…
Q: Sienna plc has deduced the net present value of a potential investment project at two discount…
A: Internal rate of return (IRR) is the discounting rate at which present value of cash flows is equal…
Q: Your division is considering two projects. The discount rate is 10 percent, and the projects’ after-…
A: “Hey, since you have posted a question with multiple sub-parts, we will answer first three sub parts…
Q: What is the net present value of a project with the following cash flows if the discount rate is 10…
A: The computation of NPV is as follows: Hence, the NPV is $7,403.80
Q: Net Cash Flows and NPVs for different discount rate for projects S and L are given below Net…
A: NPV is the net current worth of cash flows that are expected to occur in the future. It is…
Q: Sketch the NPV profiles for X and Y over a range of discount rates from zero to 25 percent (take 0%,…
A: Since you have posted a question with multiple subparts, we will solve the first three sub-parts for…
Q: Project Y has following cash flows: C0 = -800, C1 = +6,000, and C2 = -6,000. Calculate the IRRs for…
A: Year Cash Flow 0 -800 1 6,000 2 -6,000
Q: Consider the following two mutually exclusive projects: Year Cash Flow Cash Flow B 0…
A: NPV (Net Present Value)NPV is the method of finding the worth of an investment or project by…
Q: 9-17 Compute the (a) net present value, (b) internal Pate of return (IRR), (c) modified internal…
A: Discounted payback period means after how much time the present value of cash inflow is equals to…
Q: If the cash flows for Project M are C0 = -1,000; C1 = +800; C2 = +700 and C3= -200. Calculate the…
A: IRR is the discount rate at which net present value is zero. IRR is calculated by excel function…
Q: Consider the following two mutually exclusive projects: Year Cash flow project A (RM) -54,000 12,700…
A: Pay Back period is the method under Capital budgeting which help in decision making in this Capital…
Q: A project has cash flows of -$35,000, $0, $10,000, and $42,000 for Years 0 to 3, respectively. The…
A: If the IRR of project is greater than required rate of return then we will accept the project and…
Q: Given the following cash +pws for project X and project Y, Year Project X Project Y -62000 -105000 1…
A: GIVEN, year X Y 0 -62000 -105000 1 27000 10000 2 13500 18000 3 11000 22000 4 10000…
Q: Determine the risk adjusted Net Present Value of the following Projects: - Particulars Project…
A: Project A risk adjusted rate of return = 12% Project B risk adjusted rate of return = 14% Project C…
Q: Project requires an initial investment of $ 1792335 and the appropriate discount rate for this…
A: Profitability index is a ratio of present value of cash inflows and initial investment. cash inflows…
Q: Okta company provides the following information pertaining to its proposed projects. Project…
A: Capital Budgeting decisions are very important capital investment decisions needs to be taken in…
Q: GeoWorld Systems uses a subset of the following questions during the interview process for new…
A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: You are given the following cash flow for a project, and told that PW(8%) = $8,300 for this project.…
A: NPV is the sum of present value of future cashflow
Q: A proposed project is estimated to have the following cash, at 9% MARR 1 2 [TIZ- $600 $700 $800 0…
A: Cash flow diagram is a pictorial representation of the cash inflows and outflows of the project. The…
Q: Vital Silence, Inc., has a project with the following cash flows: Year Cash Flow 0 –$ 27,800…
A: IRR is the rate at which the Net Present value is ZERO. Net Present Value is the Present Value of…
(iii) M/S Azra and Co. analyzed a project as follow: 05
NPV is Rs. 57631 at 24% discount rate
NPV is Rs. (-) 38014 at 28% discount rate
Determine the
Step by step
Solved in 3 steps
- • Sienna plc has deduced the net present value of a potential investment project at two discount rates. The relevant data are as follows: Discount rate 20% 30% NPV (£000) 60 (120) What is the approximate internal rate of return of the project? A 16.7% B 23.3% C 26.6% D 33.3%A project has the following cash flows set out below. What is the profitability index of this project if the relevant discount rate is 2 percent? Enter your final answer to two decimal places. Year Cash flow 0 -1,745 1 537 2 2,066 3 3,912Calculate/estimate the IRR(s) for a 6-year project with the following cash flows: CF0 = -50, CF1 =28 = CF2 = CF3 = CF4 = CF5, and CF6 = -93. In Excel, plot the NPV (= Y axis) against r (= discountrate), using r = 0%, 2%, and so on until you find all IRRs in the chart. Identify/estimate all IRRs.
- Project Y has following cash flows: C0 = -800, C1 = +6,000, and C2 = -6,000. Calculate the IRRs for the project: For what range of discount rates does the project have positive NPV (Plot a graph with NPV on the vertical axis and discount rate on the horizontal axis).If the cash flows for Project M are C0 = -1,000; C1 = +800; C2 = +700 and C3= -200. Calculate the IRR for the project. For what range of discount rates does the project have a positive NPV?Arya Co. is considering the following two independent projects. The cash flows for Project A are expressed in nominal terms, while Project B's are expressed in real terms. The appropriate nominal discount rate is 11%, and the inflation rate is 5%. Using the exact Fisher equation, calculate net present value for Project A. (Round to 2 decimals) Year Project A Project B 0 -160,000 -109,000 1 60,000 40,000 2 60,000 40,000 3 60,000 40,000 4 60,000 40,000 5 60,000 40,000
- Net Cash Flows and NPVs for different discount rate for projects S and L are given below Net Cash Flows ($) Discount Rate (%) NPVS NPVL Year (t) Project S Project L 0% $800 $1100 0 $(3000) $(3000) 5 554.32 1 1500 400 10 161.33 2 1200 900 15 (90.74) (259.24) 3 800 1300 20 (309.03) (565.97) 4 300 1500 ii) NPVS at 10%: d) What is the IRR for S? (Write down the equation for IRR and then Use an excel worksheet to calculate IRR Equation: Answer:Determine the risk adjusted Net Present Value of the following Projects: - Particulars Project A Project B Project C Net Cash Outlays (Rs) 100,000.00 120,000.00 210,000.00 Project Life 5 Years 5 Years 5 Years Annual Cash Inflow (Rs) 30,000.00 42,000.00 70,000.00 Coefficient of Variation 0.40 0.80 1.2 The company selects the risk-adjusted rate of discount on the basis of the coefficient of variation. Coefficient of Variation Risk Adjusted Rate of Discount Present Value factor 1 to 5 years at risk adjusted rate of discount 0.0 10 % 3.791 0.4 12 % 3.605 0.8 14 % 3.433 1.2 16 % 3.274 1.6 18 % 3.127 2.0 22 % 2.864 More than 2.0 25 % 2.689Cooney Co. is evaluating the following mutually exclusive projects. The manager has determined that the appropriate discount rate is 6.2% for all the recommended projects. Rank order the projects based on the profitability index. Year Project A Project B Project C 0 (35,000) (65,000) (86,000) 1 - 40,000 44,000 2 - 22,000 44,000 3 55,000 22,000 35,000
- Monroe, Inc., is evaluating a project. The company uses a 13.8 percent discount rate for this project. Cost and cash flows are shown in the table. What is the NPV of the project? Year0 ($11,368,000)1 $2,112,5892 $3,787,5523 $3,300,6504 $4,115,8995. $ 4,556,424 Round to two decimal places. For year 0 , its initial investment .Monroe, Inc., is evaluating a project. The company uses a 13.8 percent discount rate for this project. Cost and cash flows are shown in the table. What is the NPV of the project? Year Project 0 ($11,368,000) 1 $ 2,127,589 2 $ 3,787,552 3 $ 3,125,650 4 $ 4,115,899 5 $ 4,556,424 Round to two decimal places.Please show calcualtions: a) Calculate the NPV and IRR for the following project with a discount rate of 10% - ncf yr 0 = -250,000, ncf yr 1 = 200,000, ncf yr 2 = 350,000, ncf yr 3 = 300,000, ncf yr 4 = 300,000, ncf yr 5 = -50,000