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Managerial Finance




Question;1.;Find the payback period for a project that requires investment of;$48 and returns $14 every years for 7 years.;2.;Given the following cashflows calculate;NPV.;WACC;10.00%;Year;0;1;2;3;Cash flows;?$1,050;$450;$460;$470.;3. Given the following;cashflows calculate payback period.;WACC;10.00%;Year;0;1;2;3;Cash flows;?$1,050;$450;$460;$470;4.;Calculate the payback period for a project that requires;investment of $5,400 and will provide the cashflows of $1,200, $400;$700, $3,000 and $500 in years 1 thru 5 respectively.;5.;Calculate the NPV of a project that requires investment of 681 and;provides the cashflows of 390, 318, 316, 364 in the next 4 years. The relevant;discount rate is 14%. (All numbers are in dollars).;6. IRR has the following;drawbacks. Check all that apply. No credit if you miss or wrongly check any;option.;IRR assumes that;intermediate cashflows from a project are invested at IRR;IRR may lead you to;a wrong decision if you are deciding between mutually exclusive projects.;You may get a;negative IRR;For a project with;conventional cashflows you may decide to take a project based on IRR when NPV;would have led you to reject the project.;There may be;several IRRs if the cashflows are unconventional;7.;A project has the following;cashflow. Calculate NPV.;WACC;9.00%;Year;0;1;2;3;Cash flows;?$1,000;$500;$500;$500;8. A project has the following cash flow. What is the project's;NPV?;Discount rate;11.00%;Year;0;1;2;3;4;Cash flows;?$1,000;$350;$350;$350;$350;9. A project has;following cashflow. Calculate NPV;WACC;10.25%;Year;0;1;2;3;4;5;Cash flows;?$1,000;$300;$300;$300;$300;$300;10. Calculate the;project's IRR.;Do not write the '%;sign in your answer. If the answer is 12.45%, you will enter 12.45;Year;0;1;2;3;4;Cash flows;?$1,050;$400;$400;$400;$400


Paper#49244 | Written in 18-Jul-2015

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