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Author Question: A company is looking to invest in a very risky project. They have a required rate of return of 27% ... (Read 635 times)

dbose

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on: Jun 7, 2019

Question 1

A company has the following net cash inflows. Today -$7000, Year 1 -$15 000, Year 2 -$9000, Year 3 + $12 000, Year 4 -$3000, Year 5 + $19 000. Compute the net present value if the required rate of return is 7.22% compounded annually.
◦ -$3000.00
◦ -$4709.89
◦ $4709.89
◦ -$7409.89
◦ -$7009.89

Question 2

A company is looking to invest in a very risky project. They have a required rate of return of 27% compounded annually. The project has the following cash inflows: Year 1 $17500, Year 2 $15000, Year 3 $27500. It also has the following cash outflows: Immediately -$10 000, Year 1 -$15 000, Year 3 -$9500. What is the NPV?
◦ $9718.06
◦ $7819.06
◦ $7918.06
◦ $9918.06
◦ -$9718.06
Contemporary Business Mathematics with Canadian Applications ¦ Hummelbrunner, Halliday, Coombs ¦ 11th Edition
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Marked as best answer by dbose on Jun 7, 2019

debra928

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Reply #1 on: Jun 7, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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dbose

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Reply #2 on: Jun 7, 2019
Excellent


debra928

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Reply #3 on: Jun 7, 2019
Great! Please up vote :D


Mankaran Deol

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Reply #4 on: Apr 22, 2020
Quote from: dbose on Jun  7, 2019
<p><span class="q_bt">Question 1</span></p>A company has the following net cash inflows. Today -$7000, Year 1 -$15 000, Year 2 -$9000, Year 3 + $12 000, Year 4 -$3000, Year 5 + $19 000. Compute the net present value if the required rate of return is 7.22% compounded annually.<br/>◦ -$3000.00<br/>◦ -$4709.89<br/>◦ $4709.89<br/>◦ -$7409.89<br/>◦ -$7009.89<br/><br/><p><span class="q_bt">Question 2</span></p>A company is looking to invest in a very risky project. They have a required rate of return of 27% compounded annually. The project has the following cash inflows: Year 1 $17500, Year 2 $15000, Year 3 $27500. It also has the following cash outflows: Immediately -$10 000, Year 1 -$15 000, Year 3 -$9500. What is the NPV?<br/>◦ $9718.06<br/>◦ $7819.06<br/>◦ $7918.06<br/>◦ $9918.06<br/>◦ -$9718.06
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