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##### Finance Homework 4 Assignment

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Question;Question 1;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;Question 2;Given;the following cashflows calculate payback period.;WACC;10.00%;Year;0;1;2;3;Cash flows;?\$1,050;\$450;\$460;\$470;Question 3;Find;the payback period for a project that requires investment of \$31 and returns;\$14 every years for 7 years.;Question 4;IRR;has the following drawbacks. Check all that apply. No credit if you miss or;wrongly check any option.;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.;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;There may be several IRRs if the cashflows are unconventional;Question 5;A project has the following cashflow. Calculate NPV.;WACC;9.00%;Year;0;1;2;3;Cash flows;?\$1,000;\$500;\$500;\$500;Question 6;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;Question 7;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.;Question 8;Given;the following cashflows calculate NPV.;WACC;10.00%;Year;0;1;2;3;Cash flows;?\$1,050;\$450;\$460;\$470;Question 9;Calculate;the NPV of a project that requires investment of 781 and provides the cashflows;of 487, 241, 346, 409 in the next 4 years. The relevant discount rate is 10%.;(All numbers are in dollars);Question 10;Sco;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

Paper#49247 | Written in 18-Jul-2015

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