plz provide handwritten answer for only net future worth(nfw) and use farmula f=P*(1+i)-n and plz explain each step PeriodProject Cash FlowsnABCD0- $6,000-$2,500$4,800-$4,1001$5,800-$4,400- $6,000$1,0002$12,400$7,000$2,000$5,0003$8,200$3,000$4,000$6,000Determine payback period, NPS, NFW of the projetcs A,B,C and Dwith MARR of 15%

n A B C D 0 -6000 -2500 4800 -4100 1 5800 -4400 -6000 1000 2 12400 7000 2000 5000 3 8200…

Period Project Cash Flows n A B D с $4,800 0 -$6,000 -$2,500 -$4,100 1 $5,800 -$4,400 -$6,000 $1,000 2 $12,400 $7,000 $2,000 $5,000 3 $8,200 $3,000 $4,000 $6,000 Determine payback period, NPS, NFW of the projetcs A,B,C and D with MARR of 15%

Period Project Cash Flows n A B D с $4,800 0 -$6,000 -$2,500 -$4,100 1 $5,800 -$4,400 -$6,000 $1,000 2 $12,400 $7,000 $2,000 $5,000 3 $8,200 $3,000 $4,000 $6,000 Determine payback period, NPS, NFW of the projetcs A,B,C and D with MARR of 15%

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

See similar textbooks

Related questions

Q: Financial managers should ultimately prioritize which of the following: A) Revenues B)…

A: Financial managers are those managers who oversee the financial health of a company. They oversee…

Q: ome recent financial statements for Smolira Golf, Inc., follow. SMOLIRA GOLF, INC. Balance Sheets as…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: What is the present value of a $1,000 60-month annuity due, if r is 6% APR compounded monthly?

A: The time value of money is applied in the case of calculation for the present value of the annuity.…

Q: Hook Industries's capital structure consists solely of debt and common equity. It can issue debt at…

A: Cost of debt = 11% current price of stock = 34.75 Current dividend = 2.50

Q: Consider the following scenario analysis: Rate of Return Stocks Bonds Scenario Recession Probability…

A: The expected return is calculated by multiplying the return by probability. Expected Return =…

Q: Consider the following price and dividend data for GS Company: Date Price (S)Dividend (S) December…

A: Solution:- Realised annual return means the annual percentage rate of return earned by holding a…

Q: Delaney purchased 500 shares of Upriver Tours stock on Wednesday, July 7. Edward purchased 100…

A: Date Person No. of shares purchased July 7 D 500 July 8 E 100 Dividend declared: June 20…

Q: Given that the current ratio is 2:1 and the assets and liabilities are $20,000 and 510,000…

A: Solution:- Current ratio shows the liquidity of an entity. It is the ratio of current assets to…

Q: What is the present value of a regular $1,000 60-month annuity, if r is 6% APR compounded monthly?

A: Present Value of Ordinary Annuity refers to the concept which gives out the discounted or today's…

Q: You expect to receive $10,000 at graduation in two years. You plan on investing it at 11 percent…

A: Future amount can be calculated as follows: = Present Value * (1 + rate)^ periods

Q: Bigbie Corp issued a five-year bond a year ago with a coupon of 8 percent. The bond pays interest…

A: Bond price is basically the net discounted value of the bond's future cash flow. It denotes the…

Q: What value do mutual funds add for individual investors and how?

A: Mutual Fund is a trust that pools together the resources of investors to make a foray into…

Q: Company BSM has total assets with a market value of $100 million financed by debt and equity. The…

A: The volatility: The volatility is a measure of risk. An increase in volatility implies an increase…

Q: PROVIDE - PRESENT VALUE, FUTURE VALUE, AND internal rate of return (IRR)

A: Present and Future Value: The current value of a cash flow that is expected to occur at some time in…

Q: The National Lottery decided to make 2020 a year of CHARITIES. They gave a big donation of R42 345…

A: Given, The donation amount is R 42,345,335

Q: After considering a number of investment opportunities, you have decided that you should be able to…

A: Nominal interest rate : The nominal interest rate (or money interest rate) is the percentage…

Q: D4) When a 2-year currency swap between U.S. Dollars and Currency X is created, the exchange rate is…

A: Cross-currency swaps are OTC derivatives in which two parties agree to exchange interest and…

Q: What is the combined present value of cash you will receive from your clients if r = 6% APR with…

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Q: Suppose the beta of this value based company is 0.85, the risk-free rate is 2 percent, and the…

A: The capital asset pricing model is used for calculation of expected rate of return on the basis of…

Q: Identify the services provided by banks and financial institutions for their business customers.

A: Banking is the business of safeguarding other people's money. Banks lend this money, earning…

Q: Your company has two divisions: One division sells software and the other division sells computers…

A: The Weighted Average Cost of Capital WACC is calculated with the help of following formula WACC =…

Q: CX Enterprises has the following expected dividends: $1.11 in one year, $1.19 in two years, and…

A: Here we will use the dividend discount model. As per the dividend discount model the price of stock…

Q: The New York Soccer Association would like to accumulate R10,000 by the end of 4 years from now to…

A: Solution:- When an amount is invested somewhere, it earns interest on it. The amount deposited is…

Q: The time in seconds it takes for 20 individual sewing machines to stitch a border onto a particular…

A: Data given: n X 1 66 2 60 3 58 4 74 5 64 6 64 7 61 8 62 9 69 10 73 11 58…

Q: How many monthly payments remain to be paid on an 8% mortgage with a 30-year amortization and…

A: Net present worth (NPV) is the difference between the ongoing worth of cash inflows and the ongoing…

Q: Round all answers to the nearest cent. 1. Chris is 33 years old. He wants to retire when he is 60.…

A: We will have to use the concept of time value of money. As per the concept of time value of money…

Q: CAPM The Treasury bill rate is 4%, and the expected return on the market portfolio is 12%. Using the…

A: Because you have asked question with multiple parts (MULTI PART) , we will solve the first 3 parts…

Q: cently paid a dividend, D0, of $2.50. It expects to have nonconstant growth of 20% for 2 years…

A: Present value of dividends and present value of horizon value would give the value of stock today on…

Q: Ford Motor Company has issued bonds with a maturity date of November 1, 2046 that have a coupon rate…

A: While determining the amount of coupon to be paid or the price of bond at the time of issue, it is…

Q: Sinazo inherits R63 000 months, and it is then increased to 14,2% p.a. compounded quarterly. At the…

A: Here we will use the concept of time value of money. As per the concept of time value of money the…

Q: How to figure out daily interest

A: The daily interest can be calculated by dividing the given annual percentage rate from 365. Now, the…

Q: Monroe Milk Company has a gross margin of 31.7% on net sales of $9,865,214 and total assets of…

A: Days sales outstanding is one of the calculation made in ratio analysis of the company. This is used…

Q: An annual growing perpetuity has a present value of $363,636.36 What is the growth rate (g) of this…

A: The time value of money is considered for determining the cash flows compounded and discounted…

Q: a. The going rate on student loans is quoted as 8 per cent APR. The terms of the loans call for…

A: As per Bartleby Honor Code, when multiple independent questions are asked, the expert is required…

Q: Assume that you are considering the purchase of a 20-year, noncallable bond with an annual coupon…

A: Maximum Price of Bond = Present Value of future cash flows of bond (discounted at required yield)…

Q: Loan payments of $2,750 due 96 days ago and $3,100 due today are scheduled to be repaid with a…

Q: false?

A: Investment refers to the asset which is invested in the business for building the wealth and saving…

Q: Answer true or false and explanation to why. Restructuring the liabilities might positively…

A: Debt and liability restructuring is the process of settling all owing and unpaid liabilities by…

Q: Relion Insurance Solutions (RIS) borrowed from Farm Credit Services of America (FCSA) for their…

A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…

Q: Estimate the expected return on each stock assuming that the interest rate is 2%, the expected risk…

A: Fama French 3 Factor Model: It refers to an asset pricing model that extends on the capital asset…

Q: FarCry Industries, a maker of telecommunications equipment, has 3 million shares of common stock…

A: Weight of investments With the market value of debt (VD), the market value of common stock (VS) and…

Q: The “Logistics and Transportation Star” Ltd is considering its alternative investments comprising…

A: Cost of Capital is 10% To Find: NPV IRR Payback period

Q: Your broker charges $0.0011 per share per trade. The exchange charges $0.0065 per share per trade…

A: At any particular time, the term "bid" refers to the greatest price a buyer is willing to pay for a…

Q: QUESTION 16 Bahrain Specialist Hospital has recently hired you to improve their inventory management…

A: Its basic role is to help an organization in keeping a reliable stock level while on the other hand…

Q: You are holding a portfolio with the following investments and betas: Stock Dollar investment Beta А…

A: Market's required return 10% Risk Free rate 3% Stock Dollar Investment Beta A $…

Q: Case: A borrower received a 30-year ARM mortgage loan for $200,000. Rate caps are 3/2/6. The start…

A: An initial rate of interest is defined as the teaser rate or the starting rate, which is an opening…

Q: Suppose that LilyMac Photography expects EBIT to be approximately $46,000 per year for the…

A: The taxable income is calculated with the help of following formula Taxable Income = EBIT -…

Q: Suppose your company's WACC=12% and you know that the free cash flow of your company next year is…

A: WACC = 12% Free Cash flow next year = -1,200,000 FCF is expected to grow at 8%

Q: I am thinking about buying a $100 heineken corporate bond. The bond was issued on Nov. 2005 with a…

A: Return on bond The realized return on a bond is calculated as shown below. Rate of return =Cash…

Q: A shirt factory has just installed a boiler. It is expected that there will be no maintenance…

A: Here, To Find: Present value of money at time zero =?

Question

plz provide handwritten answer for only net future worth(nfw) and use farmula f=P*(1+i)^-nand plz explain each step

Period
Project Cash Flows
n
A
B
C
D
0
- $6,000
-$2,500
$4,800
-$4,100
1
$5,800
-$4,400
- $6,000
$1,000
2
$12,400
$7,000
$2,000
$5,000
3
$8,200
$3,000
$4,000
$6,000
Determine payback period, NPS, NFW of the projetcs A,B,C and D
with MARR of 15%

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Given,

VIEW

Calculation of Net future worth is as follow:

VIEW

Answer

VIEW

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

For a project with the following set of cash flows, what is the payback period? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Year Cash Flow 1 07234 -$5,800 1,450 1,650 2,050 1,550 Payback period years < Prev 6 of 24 Nex CUCUECAA MacBook Air
Problem 1: Consider the following cash flows and assume i = 10% for all analyses purposes: Project Cash Flows A D -$2,500 -$7,000 -$5,000 -$5,000 1 $650 -$2,500 -$2,000 -$500 2 $650 -$2,000 -$2,000 -$500 $650 -$1,500 -$2,000 $4,000 4 $600 -$1,500 -$2,000 $3,000 5 $600 -$1,500 -$2,000 $3,000 $600 -$1,500 -$2,000 $2,000 7 $300 -$2,000 $3,000 8 $300 a) Compute the project balances for Projects A and D, as a function of project year b) Compute the future worth values for Projects A and D at the end of service life. c) Suppose that Projects B and C are mutually exclusive. Assume also that the required service period is eight years and that the company is considering leasing comparable equipment that has an annual lease expense of $3,000 for the remaining years of the required service period for both projects. Which project is the better choice?
The following are a project's cash flows. What is the projects year - 110155450 cash flows - 9.70% 5. 14.660%. 8.64% 10.78% . =. 16.94% IBR? $450 $40 3 8490
Q6-1 The H Group Inc. has identified the following two mutually exclusive projects: The Hetman Group Year 0 1 2 3 4 Cash flow L -$10,000 $200 $500 $8,200 $4,800 A. What is the IRR for each of these projects? IRR L IRR S Cash flow S -$10,000 $5,000 $6,000 $500 $500 use formula tab, go to Finanical select IRR. If you apply the IRR decision rule, which project should the company accepts? Is this decision necessarily correct? B. If the required return is 9%, use the formula tab, go to financial and select NPV, find NPV with the cash flows not including the initial investmnet, then subtract/add if negative the initial investment. what is the NPV for each of these projects? 0.09 NPV L NPV S Which project will you choose if you apply the NPV decision rule?
($ thousands) Net cash flow Present value at 20% Net present value Period 0 -13,100 1 2 3 4 5 6 -13,100 -1,534 -1,278 2,997 6,373 2,081 3,688 10,584 5,104 10,035 5,807 7 3,319 4,033 1,945 926 3,399 (sum of PVs) Restate the above net cash flows in real terms. Discount the restated cash flows at a real discount rate. Assume a 20% nominal rate and 10% expected inflation. NPV should be unchanged at +3,399, or $3,399,000. Note: Negative answers should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers in thousands rounded to the nearest whole number. Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Real Net Cash Flows NPV $ (13,100)
A Ltd. is considering a Project having a life of 5 year with following cash flows Project I 30,000 Outflow Inflow T-1 T-2 8,000 9,000 T-3 T-4 T-5 9,000 7,000 5,000 P.V. Table Year 10% 909 20 269 309% 35%6 741 .833 .794 796 2. .826 .694 .630 500 592 751 .683 549 406 301 579 455 482 397 350 .621 402 315 269 223 Calculate IRR of the above project.
Net present value Using a cost of capital of 12%, calculate the net present value for the project shown in the following table and indicate whether it is acceptable, The net present value (NPV) of the project is $ (Round to the nearest cent.) xt Librai alculat esource Enter your answer in the answer box and then click Check Answer. Study 1 part remaining Check Answer Clear All ication Tools > Type here to search
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) $(3000) 5 454.85 554.32 1 1500 400 10 161.33 108.59 2 1200 900 15 (90.74) (259.24) 3 800 1300 20 (309.03) (565.97) 4 300 1500 25 a) Calculate the discounted payback period in years at 10% for the Project S and Project L i) Payback for Project S: ii) Payback for Project L: b) Calculate NPVS for 25% and NPVL for 25%. Fill the table i) NPVS at 25%: ii) NPVL at 25%: c What is the IRR for S? (Write down the equation for IRR and then Use an excel worksheet to calculate IRR Equation: Answer: d) What is the IRR for L? (Write down the equation for IRR and then Use an excel worksheet to calculate IRR Equation: Answer: e) What is the…
A Ld. is considering a Project having a life of 5 year with following cash flows Project I 30,000 Outfiow Inflow T-1 T-2 T-3 8,000 9.000 9,000 7,000 5,000 T-4 T-5 P.V. Table Year 20 833 10 26 794 30 356 909 326 796 J41 549 406 301 223 .694 630 592 455 .751 683 621 579 482 500 397 4. 350 402 315 269 Caleulate IRR of the above project.
Net Cash Flows and NPVs for different discount rate for projects S and L are given below Net Cash Flows ($) Discount Rate (%) NPVS NPVL Year (t) Project S Project L 0% $800 $1100 0 $(3000) $(3000) 5 554.32 1 1500 400 10 161.33 2 1200 900 15 (90.74) (259.24) 3 800 1300 20 (309.03) (565.97) 4 300 1500 ii) NPVS at 10%: d) What is the IRR for S? (Write down the equation for IRR and then Use an excel worksheet to calculate IRR Equation: Answer:
Net Cash Flows and NPVs for different discount rate for projects S and L are given below Net Cash Flows ($) 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 a) Calculate the payback period in years for the Project S and Project L i) Payback for Project S: ii) Payback for Project L: c) Calculate NPVS for 5% and NPVL for 10%. Fill the table i) NPVS at 5%: 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: e) What is the IRR for S? (Write down the equation for IRR and then Use an excel worksheet to calculate IRR Equation: Answer: f) What is the cross-over rate? (Write down the equation for IRR and then Use…
Project MM has the following cash flows:End-of-Year Cash Flows ---------------------------------0 1 2 32$1,000 $2,000 $2,000 2$3,350Calculate MM’s NPV at discount rates of 0%, 10%, 12.2258%, 25%, 122.1470%,and 150%. What are MM’s IRRs? If the cost of capital is 10%, should the project beaccepted or rejected?

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS