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1.Find the payback period for a project that requi...

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1.Find the payback period for a project that requires investment of $34 and returns $12 every years for 7 years. 2. 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 3. 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. 4. Given the following cashflows calculate NPV. WACC: 10.00% Year 0 1 2 3 Cash flows ?$1,050 $450 $460 $470 5. RR has the following drawbacks. Check all that apply. No credit if you miss or wrongly check any option. There may be several IRRs if the cashflows are unconventional 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 6. Calculate the NPV of a project that requires investment of 567 and provides the cashflows of 487, 272, 253, 372 in the next 4 years. The relevant discount rate is 10%. (All numbers are in dollars) 7. Given the following cashflows calculate payback period. WACC: 10.00% Year 0 1 2 3 Cash flows ?$1,050 $450 $460 $470 8. A project has the following cashflow. Calculate NPV. WACC: 9.00% Year 0 1 2 3 Cash flows ?$1,000 $500 $500 $500 9. 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 10. 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

 

Paper#8674 | Written in 18-Jul-2015

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