NPV, IRR, MIRR, Payback Period, Discounted Payback Period

(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

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

A) Valuation of a constant growth stock - A stock is expected to pay a dividend of $0.50 at the end of the year (that is D1 = 0.50), and it should continue to grow at a constant rate of 7 percent a year. If its required return is 12 percent, what is the stock's expected price 4 years from today? B) Cost of common

A firm with a 14 percent WACC is evaluating two projects for this year's capital budget. After-tax cash flows, including depreciation, are as follows: 0 1 2 3 4 5 Project A -6,000 2,000 2,000 2,000 2,000 2,000 Project B -18,000 5,600 5,6

Your division is considering two investment projects, each of which requires an up-front expenditure of $28 million. You estimate that the cost of capital is 8% and that the investments will produce the following after-tax cash flows (in millions of dollars): Year Project A Project B 1 5 20

1.Project K has a cost of $52,125, its expected net cash inflows are $12,000 per year for 8 years, and its cost of capital is 12 percent. (Hint: Begin by constructing a time line) a. what is the projects payback period (to the closest years)? b. what is the projects discounted payback period? c. what is the projects npv?

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 $40,000 5 -$

If the intital investment is $6.45 M and the net operating cash flow is 2.45 M for 5 years at a 8% cost of capital what is the: Payback? Discounted Payback Rate? NPV? Profitability Index? IRR? MIRR?

Do you think that the payback method has increased or decreased in popularity in recent years? Explain