What is your estimate about the irr of this project

Assignment Help Financial Management

Reference no: EM132029815

Lepton Industries has a project with the following projected cash flows: Initial Cost, Year 0: $468,000 Cash flow year one: $135,000 Cash flow year two: $240,000 Cash flow year three: $185,000 Cash flow year four: $135,000 Plot the NPV profile of this project in Excel. Start with discount rate equal to zero and increase the discount rate by 2% increments until discount rate equal to 30%. For what discount rates would Lepton accept this project? For what discount rates would Lepton reject this project? What’s your estimate about the IRR of this project?

Reference no: EM132029815

Questions Cloud

What is BEAs unlevered beta : What is BEA's unlevered beta? Use market value D/S (which is the same as wd/ws) when unlevering. What are BEA's new beta and cost of equity if it has 40% debt?

How did the federalist and republican parties develop : In what ways did the French Revolution, Whiskey Rebellion, 1796 election, XYZ Affair, and the Alien and Sedition Acts polarize the two?

Differences have on the revenues and receivables : Discuss the differences in the Financial Statements and the effect that these differences have on the Revenues and Receivables.

What is the cost of goods sold for each month : The company sold inventory that cost 32,000 in August and the remainder in September. What is the cost of goods sold for each month

What is your estimate about the irr of this project : For what discount rates would Lepton reject this project? What’s your estimate about the IRR of this project?

Determine how long ago a volcanic eruption occurred : How would geologists use potassium-argon dating to determine how long ago a volcanic eruption occurred?

Illustrate the development of architecture : Discuss five (5) specific and dated buildings that illustrate the development of architecture and its use throughout the periods and cultures.

Determine whether company should accept or reject project : Using a 10% discount rate for this project and the NPV model, determine whether the company should accept or reject this project?

Robotic paint sprayer to production line : The Campbell Company is considering adding a robotic paint sprayer to its production line. what is the NPV of the project?

User Account

All Pages