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What is the? project npv using a discount rate

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Reference no: EM132951485

1) You are offered ?$90,000 today or ?$300,000 in 13 years. Assuming that you can earn 13 percent on your? money, which should you?choose? ?If you are offered ?$300,000 in 13 years and you can earn 13 percent on your? money, what is the present value of ?$300,000?? (Round to the nearest? cent.)

2) You are offered ?$100,000 today or ?$300,000 in 13 years. Assuming that you can earn 11 percent on your? money, which should you?choose? If you are offered ?$300,000 in 13 years and you can earn 11 percent on your? money, what is the present value of ?$300,000?? (Round to the nearest? cent.)

3) Dowling Sportswear is considering building a new factory to produce aluminum baseball bats. This project would require an initial cash outlay of ?$4,000,000 and would generate annual net cash inflows of ?$1,200,000 per year for 7 years. Calculate the? project's NPV using a discount rate of 8 percent. If the discount rate is 8 ?percent, then the? project's NPV is ?$? (Round to the nearest? dollar.)

4)  Carson Trucking is considering whether to expand its regional service center in? Mohab, UT. The expansion requires the expenditure of ?$9,000,000 on new service equipment and would generate annual net cash inflows from reduced costs of operations equal to ?$2,000,000 per year for each of the next 7 years. In year 7 the firm will also get back a cash flow equal to the salvage value of the?equipment, which is valued at ?$1.1 million. ? Thus, in year 7 the investment cash inflow totals ?$3,100,000. Calculate the? project's NPV using a discount rate of 6 percent. If the discount rate is 6 ?percent, then the? project's NPV is ?$? (Round to the nearest? dollar.)

5) Big? Steve's, makers of swizzle? sticks, is considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of ?$90,000 and will generate net cash inflows of ?$21,000 per year for 8 years.

a. What is the? project's NPV using a discount rate of 11 percent? Should the project be accepted, why or why not? (Round to the nearest? dollar.)

b. What is the? project's NPV using a discount rate of 14 ?percent? Should the project be? accepted? Why or why? not? (Round to the nearest? dollar.)

c. What is this? project's internal rate of? return? Should the project be? accepted? Why or why? not? (Round to the nearest? dollar.)

Reference no: EM132951485

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