Winston Clinic is evaluating a project that costs $52, 125 and has expected net cash inflows of $12,000 per year for eight years. The first inflow occurs one year after the cost outflow, and the project has a cost of capital of 12 percent. What is the project's payback? What is the project's NPV? Its IRR? Its MIRR? Is the project financially acceptable? Explain your answer.
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Winston Clinic is evaluating a project that costs $52, 125 and has expected net
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- You are considering an investment for which you require a rate of return of 8.5 percent. The investment costs $53,500 and will produce cash inflows of $20,000 for three years. Should you accept this project based on its internal rate of return? Why or why not? Can the calculator and excel solution be provided?Winview Clinic is evaluating a project that costs $52,125 and has expected net cash inflows of $12,000 per year for eight years. The first inflow occurs one year after the cost outflows, and the project has a cost of capital of 12%. b. What is the project's NPV? Its IRR? Its MIRR?You are evaluating a project that costs $75,000 today. The project has an inflow of $ 155,000 in one year and an outflow of $65,000 in two years. What are the IRRs for the project? What discount rate results in the maximum NPV for this project? How can you determine that this is the maximum NPV?
- You are considering a project with an initial cash outlay of $80,000 and expected free cash flows of $20,000 at the end of each year for 6 years. The required rate of return for this project is 10 percent. A; What is the project’s payback period? B; What is the project’s NPV ? C; What is the project’s PI ? D; What is the project’s IRR ?What information does the payback period provide? Suppose you are evaluating a project with the expected future cash inflows shown in the following table. Your boss has asked you to calculate the project's net present value (NPV). You don't know the project's initial cost, but you do know the project's regular, or conventional, payback period is 2.50 years. If the project's weighted average cost of capital (WACC) is 9%, the project's NPV (rounded to the nearest dollar) is: $355,048 $287,420 $405,769 $338,141 Which of the following statements indicate a disadvantage of using the regular payback period (not the discounted payback period) for capital budgeting decisions? Check all that apply. The payback period does not take the time value of money into account. The payback period is calculated using net income instead of cash flows. The payback period does not take the project's entire life into account.Big Steve's, makers of swizzle sticks, is considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of $95,000 and will generate net cash inflows of $21,000 per year for 9 years. a. What is the project's NPV using a discount rate of 11 percent? Should the project be accepted? Why or why not? b. What is the project's NPV using a discount rate of 17 percent? Should the project be accepted? Why or why not? c. What is this project's internal rate of return? Should the project be accepted? Why or why not? Question content area bottom Part 1 a. If the discount rate is 11 percent, then the project's NPV is $enter your response here.
- You are considering a project with an initial cash outlay of $100,000 and expected free cash flows of $25,000 at the end of each year for 6 years. The required rate of return for this project is 10 percent. What is the project’s payback period? What is the project’s NPV ? What is the project’s PI ? What is the project’s IRR ?Do the following problems. You must show your work. b) Find the IRR of the following projects and make your decision. Assume that the projects' cost of capital (or WACC) is 5%. Project X that costs $800 million is expected to generate $60m per year for 18 years. Is this project acceptable?Project Y that costs $100 million is expected to generate $22m per year for 7 years. Is this project acceptable?Television is considering a project with an initial outlay of $X (you will have to determine this amount). It is expected that the project will produce a positive cash flow of $54,000 a year at the end of each year for the next 13 years. The appropriate discount rate for this project is 8 percent. If the project has an internal rate of return of 13 percent, what is the project's net present value? *** a. If the project has an internal rate of return of 13%, then the project's initial outlay is $ the nearest cent.) (Round to
- A project that requires an initial investment of $340,000 is expected to have an after-tax cash flow of $70,000 per year for the first two years, $90,000 per year for the next two years, and $150,000 for the fifth year? Assume the required return for this project is 10%. Use formula solve Please!!!a. What is the NPV of the project? b. What is the IRR of the project? c. What is the MIRR of the project? d. What is the PI of the project?Big Steve's, makers of swizzle sticks, is considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of $110,000 and will generate net cash inflows of $17,000 per year for 8 years. a.What is the project's NPV using a discount rate of 8%? Should the project be accepted? Why or why not? b.What is the project's NPV using a discount rate of 17%? Should the project be accepted? Why or why not?You are evaluating a project that costs $75,000 today. The project has an inflow of $160,000 in one year and an outflow of $65,000 in two years. What are the IRRs for the project? What discount rate results in the maximum NPV for this project?