1)
PV of cash flows will be
=-2000/(1+12%)^1+3000/(1+12%)^2+4000/(1+12%)^3+6000/(1+12%)^4+8000/(1+12%)^5
=11805.51
the above will be answer..
What is the PV of the following cash flows (round to nearest cent) The opportunity cost...
Investment Opportunity: Purchase Price: Useful Life: Cost of Capital: Zimboozy $17,500 5 years 8.00% YEAR Cash in PV $ Data: 5,000 8,000 13,000 7,000 8,000 Cash out $17,500 2,500 4,000 5,200 4,800 3,000 Net Flow (17,500) 2,500 4,000 7,800 2,200 5,000 4,000 Summary of annual cash flows YEAR Cash in NPV $ Cash out $17,500 2,500 4,000 5,200 4,800 3,000 5,000 8,000 13,000 7,000 8,000 Net Flow (17,500) 2,500 4,000 7,800 2,200 5,000 4,000 IRR approach to capital budgeting Input...
The questions are asking to round to the nearest cent, not a
whole number. Thank you, I appreciate all your help!
You must evaluate a proposal to buy a new milling machine. The base price is $100,000, and shipping and installation costs would add another $12,000. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $60,000. The applicable depreciation rates are 33%, 45%, 15%, and 7%. The machine would require a $3,000...
The cash flows from these three investments are as follows: End of Year A ____B ____ C 1 $1,000 $2,000 $4,000 2 2,000 2,000 4,000 3 3,000 2,000 (4,000) 4 -4,000 2,000 (4,000) 5 4,000 4,000 14,000 a. What is the present value of investment A at an annual discount rate of 11 percent?(Round to the nearest cent.) b. What is the present value of investment B at an annual discount rate of 11 percent?(Round to the nearest cent.)...
Find the present value of the streams of cash flows shown in the following table, Assume that the firm's opportunity cost is 12%. a. The present value of stream A is $ (Round to the nearest dollar.) Enter your answer in the answer box. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.)Data Table A B C Year Cash Flow Year Cash Flow Year Cash Flow...
The Kweller Company is considering two different capital investment projects with the following cash flows Commerce Sawdust Year 0 (20,000) (18,000) Year 1 8,000 4,000 Year 2 6,000 8,000 Year 3 4,000 6,000 Year 4 3,000 3,000 As needed, the company uses a 4% interest rate for capital investment decisions. 1. What is the cash payback period for Commerce? Round your final answer to two decimal places. 2. What is the net present value (NPV) for Sawdust? Round your final...
A company is considering a 3-year project that requires an initial installed equipment cost of $10,000. The project engineer has estimated that the operating cash flows will be $4,000 in year 1, $6,000 in year 2, and $8,000 in year 3. The new machine will also require a parts inventory of $3,000 at the beginning of the project (assume this inventory can be sold for cost at the end of the project). It is also estimated that the equipment can...
(Present value of an uneven stream of payments)You are given three investment alternatives to analyze. The cash
flows from these three investments are as follows:a. What is the present value of investment A
at an annual discount rate of 12 percent?(Present value of an uneven stream of payments) You are given three investment alternatives to analyze The cash flows from these three investments are as follows Investment End of Year $ 1,000 2,000 3,000 (4,000) $2,000 2,000 2,000 2,000 4,000 $ 6,000 6,000...
You are given three investment alternatives to analyze. The cash flows from these three investments are as follows: Investment End of Year A B C 1 $ 1,000 $ 1,000 $ 4,000 2 2,000 1,000 4,000 3 3,000 1,000 (4,000) 4 (4,000) 1,000 (4,000) 5 4,000 3,000 14,000 What is the present value of each of these three investments if the appropriate discount rate is 11 percent? (Round to the nearest cent.)
Please round to the nearest Cent (:
NPV and IRR Benson Designs has prepared the following estimates for a long-term project it is considering. The initial investment is $61,450, and the project is expected to yield after-tax cash inflows of $9,000 per year for 11 years. The firm has a cost of capital of 12%. a. Determine the net present value (NPV) for the project. b. Determine the internal rate of return (IRR) for the project. c. Would you recommend...
Consider the following uneven cash flow stream: Year Cash Flow PV of Cash Flow 0 $2,000 1 2,500 2 0 3 1,500 4 3,000 5 4,500 a. What is the present (Year 0) value of the cash flow steam if the opportunity cost rate is 10%? b. What is the future (Year 5) value of the cash flow stream if the cash flows are invested in an account that pays 10% annually?