Present Value
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Haig Aircraft is considering a project that has an up-front cost of $152,447 paid today at t = 0. The project will generate positive cash flows of $60,000 a year at the end of each of the next five years. The project's NPV is $75,000 and the company's WACC is 10%. What is the project's regular payback?
a. 3.22 years
b. 1.56 years
c. 2.54 years
d. 2.35 years
e. 4.16 years
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BMI is considering a project that has a cost of $33,578.17 and it's expected net cash inflows are $12,000 per year for 4 years. What is the project's NPV at the cost of capital of 10%?
a. 3250.25
b. 3462.65
c. 4460.2
d. 6422.34
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The firm will have realized $120,000 in two years and will be left ...
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