About the cash flow

Assignment Help Financial Management
Reference no: EM13927600

A project has the following cash flows: Year Cash Flow 0 $ 42,500 1 – 21,500 2 – 32,500 What is the IRR for this project? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) IRR % What is the NPV of this project, if the required return is 10 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV $ What is the NPV of the project if the required return is 0 percent? (Do not round intermediate calculations. A negative amount should be indicated by a minus sign.) NPV $ What is the NPV of the project if the required return is 20 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV $

Reference no: EM13927600

Questions Cloud

Contribute an equal amount on a yearly basis. : Suppose you will need $50,000 in 4 years to start up a new business you have planned. With a 5% real interest rate, how much do you have to invest now in order to achieve this goal? Repeat Problem #3, but assume you can contribute an equal amount on ..
Suppose microsoft projected free cash flow : Suppose Microsoft projected free cash flow for next year is FCF = $8.75 billion, and due to expected lower revenues and slower growth sales FCF is expected to grow at a constant rate of only 4.5% into the infinite future. The company’s weighted avera..
Financial information and works out the investment plan : Peter is interested in investing in Hong Kong and will set up a porfolio worth $100,000. He received the following financial information and works out the investment plan. ABC Company paid a dividend of $2.50 and announced that the next dividend woul..
Prepare a material requirements plan using lot for lotorder : There are 120 legs on hand. There are 60 braces on hand. Lead times ( in days) for all items are shown in the following table. Prepare a material requirements plan using lot  for lotordering.
About the cash flow : A project has the following cash flows: Year Cash Flow 0 $ 42,500 1 – 21,500 2 – 32,500 What is the IRR for this project? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) IRR % What is..
What portfolio of options and risk-free asset : What portfolio of options and risk-free asset (if any) can be used to replicate the payoffs of a forward contract on IBM stock with 9 months to maturity? Assume the forward price satisfies no-arbitrage pricing. IBM stock currently trades for $90/shar..
Corporation with taxable income : A corporation with a taxable income of $50 million is considering a new venture that would generate an additional $500,000 per year in taxable income. How much additional federal income tax will they pay on this additional income?
Which project does a risk averse manager prefer : Project A generates $5,000.00 in revenue two years from today and costs $4,000.00. Project B generates $4,000.00 (50% probability) or $6,000.00 (50% probability) one year from today and costs $4,500.00. Assuming a discount rate of 12% for both projec..
Calculating portfolio betas : Calculating Portfolio Betas You own a stock portfolio invested 10 percent in Stock Q , 35 percent in Stock R , 20 percent in Stock S , and 35 percent in Stock T. The betas for these four stocks are .75, 1.90, 1.38, and 1.16, respectively. What is the..

Reviews

Write a Review

 

Financial Management Questions & Answers

  Find zero coupon bond with par value

You find a zero coupon bond with a par value of $10,000 and 18 years to maturity. The yield to maturity on this bond is 5 percent. Assume semiannual compounding periods. What is the price of the bond?

  Specializes in voice recognition software

Voice App is a midsize software company that specializes in voice recognition software. Due to rising costs of maintaining IT technical support, your director is considering outsourcing­ your technical support services. Include all costs you must cal..

  Why reward-to-risk ratio must be equal for all securities

Given that higher risk investments, such as small-company stocks, have outperformed other investments over time, why don't all investors choose to invest only in these high risk securities? Explain why the reward-to-risk ratio must be equal for all s..

  Statements about southeast

The beta of Southeast has been estimated to be 0.85. Which of the following statements about Southeast is FALSE?

  Cost performance index times schedule performance index

Using the cumulative data from the IPMR below for WBS 1.1.5, calculate a formula-based estimate at completion (EAC) using the performance factor of cost performance index times schedule performance index, or CPI x SPI.

  Realized return is known as the holding period yield

The YTM on a bond is the interest rate you earn on your investment if interest rates don’t change. If you actually sell the bond before it matures, your realized return is known as the holding period yield (HPY).

  How many shares of common stock can be obtained

How many shares of common stock can be obtained by converting one $1,000 par value debenture; that is, what is the conversion ratio? What was the conversion value of this issue when these debentures were originally issued?

  The sludge dewatering processes

Yellow jacket, Inc., a large textile company, is trying to decide how long it should retain one of its machines used in the sludge dewatering processes. The machine currently is estimated to have a $35,000 market value and a future market value of $1..

  Determinants of interest rate for individual securities

Determinants of Interest Rate for Individual Securities A particular security's default risk premium is 4.90 percent. For all securities, the inflation risk premium is 3.65 percent and the real interest rate is 3.70 percent. The security's liquidity ..

  Considering adding robotic paint sprayer to its production

The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $1,080,000, and it would cost another $22,500 to install it. The machine falls into the MACRS 3-year class, and it would be sold af..

  Negative growth stockswinton mining has seen its business

negative growth stockswinton mining has seen its business slowly wind down. it recently paid a dividend of 1.80 per

  Which of the following classifications of securities had

1 the practice of not putting all of your eggs in one basket is an illustration of .a varianceb diversificationc

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd