Three Rivers Company runs clothing stores in the Pittsburgh area. Three Rivers' management estimates that if it invests $250,000 in a new computer system, it can save $75,000 in annual cash operating costs. The system has an expected useful life of ten years and no terminal disposal value. The required rate of return is 8%. Ignore income taxes and assume all cash flows occur at year-end except for initial investment amounts to calculate the following:

1. Net present value
2. Payback period
3. Discounted payback period
4. Internal rate of return (using the interpolation method)
5. Accrual accounting rate of return based on the net initial investment (assume straight-line depreciation)
6. What other factors should Three Rivers consider in deciding whether to purchase the new computer system?
7. Should they purchase the new system? Why or why not?

Project SS costs $52,125, its expected net cash flows are $12,000 per year for 8 years, its WACC is 12%.
What is the project's NPV?
IRR?
MIRR?
Payback Period?
Discounted Payback Period?
(Show calculations)

Consider an investment that costs $100,000 and had a cash inflow of $25,000 every year for 5 years. The required return is 9% and required payback is 4 years.
Wwhat is the payback period?
What is the discounted payback period?
What is the NPV?
What is the IRR?
Should we accept this project?
What decision rule should b

Based on the numbers in the spreadsheet (see attachment):
What would the IRR be if NPV was 0? (for both the equity case and the leveraged case)?
And the Discounted Payback would be for how many years?

(10-1)
NPV
A project has an initial cost of $40,000, expected net cash inflows of $9,000 per year for 7 years, and a cost of capital of 11%. What is the project's NPV (Hint: Begin by constructing a time line.)
(10-2)
IRR
Refer to Problem 10-1. What is the Project's IRR?
(10-3)
MIRR
Refer to Problem 10-1 What is t

I have an excel spreadsheet where certain areas have been left blank and need to be computed in order to complete a research paper. However, I'm not sure how to do the calculations correctly. Please help. The areas highlighted in YELLOW need to be calculated. Thank you.

Can someone help with the following question?
The following is stream of expect cash flows from a project to replace an old sail boat with a new one. The new boat will cost $15,000 and will be good for 5 years. It will be traded-in for another boat at the end of its useful life. The following cash flows are expected:
Ye

Question 1
Assume you have just been promoted junior financial manager of a company. You are very smart and are planning to be promoted in the next 2-2.5 years. An associate of your company shows you a project with the following cash flows.
End of Year Cash Flows
0 -$100,000
1 $40,000
2 $40,000
3 $40,000
4 $40,000
5 -$

Please help me provide an explanation on how to answer these questions.
1. Consider the following two mutually exclusive projects:
Year CF (A) CF (B)
0 -2000 -100,000
1 1500 50,000
2 200 20,000
3 500 30,400
Whichever project you choose, if any, you require a 10 percent return on you

Dream Inc. is considering two projects with the following after-tax cash flows
Expected net cash flows
Time Project A Project B
0 ($30) ($30)
1 $5 $20
2 $10 $10
3 $15 $8
4 $20 $6
Either venture would be funded with 40% equity and 60% debt. The cost of debt is 8%. The company has a beta of 1.5, the risk-free r