The world’s Largest Sharp Brain Virtual Experts Marketplace Just a click Away
Levels Tought:
Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | May 2017 |
| Last Sign in: | 402 Weeks Ago |
| Questions Answered: | 66690 |
| Tutorials Posted: | 66688 |
MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
A project has an initial cost of $52,125, expected net cash inflows of $12,000 per year for 8 years and a cost of capital (discount rate) of 12%.
1) What is the project's NPV? Use table below to solve
| Â | Â | Â | Â |
=> NPV = ? 2) What is the project's IRR? Use table below to solve |
| N | I | PV | PMT | FV |
| ? | Â | ? | ? | ? |
| Â | ? | Â | Â | Â |
3) What is the project's MIRR, assuming that interim cash flows can be reinvested at a rate of 3%
To Calculate Terminal Value:
| N | I | PV | PMT | FV |
| ? | ? | ? | ? | ? |
| Â | Â | Â | Â | Â |
Taking the TV and calculating MIRR:
| N | I | PV | PMT | FV |
| ? | Â | ? | ? | ? |
| Â | ? | Â | Â | Â |
4) What is the project's profitability index?
5) What is the project's payback period? (in years)
6) What is the project's discounted payback period? (in years)
Hint: Use table below
| Years | Cash Flow | PV of Cash Flow | Cum Cash Flow |
| 0 | ? | ? | ? |
| 1 | ? | ? | ? |
| 2 | ? | ? | ? |
| 3 | ? | ? | ? |
| 4 | ? | ? | ? |
| 5 | ? | ? | ? |
| 6 | ? | ? | ? |
| 7 | ? | ? | ? |
| 8 | ? | ? | ? |
Â
Hel-----------lo -----------Sir-----------/Ma-----------dam-----------Tha-----------nk -----------You----------- fo-----------r u-----------sin-----------g o-----------ur -----------web-----------sit-----------e a-----------nd -----------and----------- ac-----------qui-----------sit-----------ion----------- of----------- my----------- po-----------ste-----------d s-----------olu-----------tio-----------n.P-----------lea-----------se -----------pin-----------g m-----------e o-----------n c-----------hat----------- I -----------am -----------onl-----------ine----------- or----------- in-----------box----------- me----------- a -----------mes-----------sag-----------e I----------- wi-----------ll