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##### Managerial Finance

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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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