Reference no: EM133149286
Question -
1- A project has the following cash flows
0
|
1
|
2
|
3
|
($500)
|
$100.00
|
$200
|
$310.00
|
What is the project's NPV if the interest rate is 6%?
Q2- Medela's entertainment system is setting up to manufacture a new line of video game consoles. The cost of the manufacturing equipment is $1,750,000. Expected cash flows over the next four years are $725,00, $850,000, $1200,000, and $1500000. Given the company required rate of return of 15%, what is the NPV of this project?
Q3- A project required an initial outlay of $100,000 and is expected to generate annual net cash inflows of $28,000 for the next five years. Determine the payback period for the project.
Q4- An investment project requires an initial outlay of $100,000, and is expected to generated annual cash inflows of $28000 for the next five years (round to the nearest tenth of the percentage) determine the (internal Rate of return) IRR for the project using the financial calculator.