What is net present value for the best project

Assignment Help Financial Management

Reference no: EM131617098

1. Suppose a company has proposed a new 4-year project The project has an initial outlay of $32,000 and has expected cash flows of $6,000 in year 1, $8,000 in year 2, $11,000 n year 3, and $13,000 in year 4. The required rate of return is 15% for protects at this company. What is the net present value for this project? (Answer to the nearest dollar.)

2. Suppose a company has two mutually exclusive projects, both of which are three years in length Project A has an initial outlay of $8,000 and has expected cash flows of $3,000 in year 1, $4,000 in year 2, and $4,000 in year 3 Project B has an initial outlay of $7,000 and has expected cash flows of $3,000 in year 1, $4,000 in year 2, and $5,000 in year 3. The required rate of return is 15% for projects at this company. What is the net present value for the best project? (Answer to the nearest dollar.

Reference no: EM131617098

Questions Cloud

The account which contains savings earns : If the account which contains savings earns 5.5% per year simple interest, how much money needs to be in the account by the time you your 70th birthday?

Comprehensive problems : Huntington Power Co. is evaluating two mutually exclusive project that is somewhat riskier than the usual project the firm undertakes.

How much must he deposit in an account today : How much must he deposit in an account today if he wants to receive $2,100 at the beginning of each of the next seven years?

What is discounted payback for this project : The required this project rate of return is 14% for projects at this company what is the discounted payback for this project?

What is net present value for the best project : The required rate of return is 15% for projects at this company. What is the net present value for the best project?

Determine whether manager is saying firm is under-valued : Compute the return the firm should earn given its level of risk and determine whether the manager is saying the firm is under-valued

Trade-offs among these considerations : What issues should an organization consider in selecting a package of employee benefits? How should an employer manage trade-offs among these considerations?

They applied to the loan company for the maximum loan : A couple wishes to borrow money using the equity in their home for collateral. they applied to the loan company for the maximum loan.

What is the net present value of this project : A company is considering a 6-year project that requires an initial outlay of $27,000. what is the net present value (NPV) of this project?

User Account

All Pages