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Project expected npv can be negative

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1. ABC Inc. is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that if a project's expected NPV is negative, it should be rejected.

WACC:6%

Year                          0               1               2               3               4               5    

Cash flows           -$1,200       $200         $400         $400         $300         $300

2. ABC Enterprises is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's expected NPV can be negative, in which case it will be rejected.

WACC: 5%

Year                          0               1               2               3    

Cash flows           -$1,050       $450         $460         $470

3. Warranty Inc. is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's expected NPV can be negative, in which case it will be rejected.

WACC:10%

Year                          0               1               2               3    

Cash flows            -$950        $500         $400         $300

4. Berry Company is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's expected NPV can be negative, in which case it will be rejected.

WACC:8%

Year                          0               1               2               3               4               5    

Cash flows           -$1,000       $400         $390         $380         $370         $360

Reference no: EM131928463

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