Calculate projects npv-irr and payback period

Assignment Help Financial Management

Reference no: EM131044106

A project has an initial cost of $100,00. The project has an estimated cost of capital of 10%. It's expected cash flows are as follows:

Year1: 11,000

Year2: 33,000

Year3: 35,000

Year4: 37,000

Year5: 37,000

Year6: 33,000

Year7: -10000(cost to shut down)

Calculate project's NPV, IRR, and payback period.

Reference no: EM131044106

Questions Cloud

Dividends are expected to grow at rate : Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 22 percent for the next three years, with the growth rate falling off to a constant 7 percent thereafter. If the required return is 12 percent, and the company just paid a di..

Explain challenge related to enforcing laws at local level : Explain whether enforcement of immigration laws should occur at the local, state, and/or federal level. Explain at least one challenge related to enforcing the laws at the local level.

Concepts of quality improvement in the health care industry : Explain basic concepts of quality improvement in the health care industry. Explain the concepts of risk management in the health care industry

Report about bank of america organization information plan : Prepare a report about BANK OF AMERICA ORGANIZATIOn information assurance plan. Assume that you are the lead network security expert in your organization.

Calculate projects npv-irr and payback period : A project has an initial cost of $100,00. The project has an estimated cost of capital of 10%. Calculate project's NPV, IRR, and payback period.

Weekly marketing analysis paper : This is the third of six Weekly Marketing Analysis Papers you will complete in this course. Pricing strategies for products or services usually involve three main ways to increase profits. A business can cut costs, sell more, or find more profit w..

What is the value of your portfolio if the stock price : You buy 100 shares of stock at $50 per share and sell a single covered call on them for $1 per contract at the same time. The call has an exercise price of $55. What is the value of your portfolio if the stock price is still at $50 at expiration? At ..

Find the terminal stock price using a benchmark PE ratio : In practice, a common way to value a share of stock when a company pays dividends is to value the dividends over the next five years or so, then find the “terminal” stock price using a benchmark PE ratio. What is the target stock price in five years?..

Business issue identification : For this discussion, you will gather sources of information based on a health care business issue, which can be administrative or managerial. In this discussion, you will define your problem and identify the goals you are trying to achieve.

User Account

All Pages