The table bellow shows the cash flow for an engineering project, if the reinvestment rate of return ɛ is 6% per year, the external rate of rate (EER) is : EOY Cash flow $ -13000 4 -4000 5 to 10 6000
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- Redbird Company is considering a project with an initial investment of $265,000 in new equipment that will yield annual net cash flows of $45,800 each year over its seven-year life. The companys minimum required rate of return is 8%. What is the internal rate of return? Should Redbird accept the project based on IRR?The table bellow shows the cash flow for an engineering project, if the reinvestment rate of return e is 6% per year, the external rate of rate (EER) is EOY Cash flow $ 13000 14 2000 5 to 10 8000The cash flows associated with an investment project are as follows: Year Project Y 0 (40 000) 1 10000 2 10000 3 15000 4 20000 The required return is 5 percent. Reinvestment rate 6%. What’s the discount payback period of the projects? (compile a spreadsheet) Calculate NPV, PI, IRR , MIRR of a projects Should the firm accept the project?
- The table bellow shows the cash flow for an engineering project, if the reinvestment rate of return e is 6% per year, the external rate of rate (EER) is : EOY Cash flow $ 13000 14 -2000 5 to 10 8000 Select one: O a 14.3% O b. 17.6% O G 7% O d. 20.1% O e. 10%The cash flows associated with an investment project are as follows: Project Y (200 000) 100 000 Year 100 000 120 000 110 000 The discount rate is 8 percent. What's the discount payback period of the projects? (compile a spreadsheet) Calculate NPV, PI of a projects Calculate IRR of a projects Should the firm accept the project? a) b) c) d) 01234ed Your company has a project available with the following cash flows: Year Cash Flow 0 -$80,900 12345 21,600 25,200 31,000 26,100 20,000 If the required return is 15 percent, should the project be accepted based on the IRR?
- for the following cash flow, if i; = ib = 12% and MARR= 15%, 1. Determine i* by using MIRR? (final answer) 2. Is the project acceptable? 614,600 386,000 92,800 5 = N End of Year(EOY) 42,500 202,200 450,000Based on the cash flow predictions of the given project below, what is the project's profitability index? (required rate of return = 6%) Years Cash Flows -60,000 -12,000 55,000 26,000 Select one: a.-0,81 ь.0.41 C-0,11 d.0.99A project has the following cash flows: Year Cash Flow 0-22,500 1 12,310 22,760 3 4, 900 4 9, 870 Assuming the appropriate interest rate is 10%, what is the MIRR for this project using the discounting approach? MIRR = %
- You've estimated the following cash flows (in $) for a project: A B 1 Year Cash flow 2 0 -3,000 3 1 900 4 2 1,300 5 3 1,606 The required return is 8.5%. 1. What is the IRR for the project? 2. What is the NPV of the project? 3. What should you do? Check all that apply: Accept the project based on its IRR Accept the project based on its NPV Reject the project based on its IRR Reject the project based on its NPVA project has the following cash flows : Year Cash Flows 0 −$11,900 1 5,230 2 7,540 3 4,960 4 −1,600 Assuming the appropriate interest rate is 9 percent, what is the MIRR for this project using the discounting approach?A project with the following cash flows received each year and with a required return of 8%.Initial Outlay = RM100Cash Flows: Year 1 = RM40Year 2 = RM50Year 3 = RM60 With the information given, compute: i. Discounted payback periodii. Net Present Value andiii. Profitability Index.