At a required return of 10 percent, what is the NPV of the project? (Do not incl
ID: 2694622 • Letter: A
Question
At a required return of 10 percent, what is the NPV of the project?(Do not include the dollar sign ($).Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations.Round your answer to 2 decimal places (e.g., 32.16).)
At a required return of 26 percent, what is the NPV of the project?(Do not include the dollar sign ($).Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations.Round your answer to 2 decimal places (e.g., 32.16).)
At what discount rate would you be indifferent between accepting the project and rejecting it?(Do not include the percent sign (%).Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations.Round your answer to 2 decimal places (e.g., 32.16).)
A project that provides annual cash flows of $2,250 for nine years costs $9,300 today.Explanation / Answer
Hi, Please find the answers as follows. Last time I mistakenly took 9300 as 9930. I am sorry for that. Part A: = -9300 + 2250/(1+.10)^1 + 2250/(1+.10)^2 + 2250/(1+.10)^3 + 2250/(1+.10)^4 + 2250/(1+.10)^5 + 2250/(1+.10)^6 + 2250/(1+.10)^7 + 2250/(1+.10)^8 + 2250/(1+.10)^9 = 3657.80 Part B: = -9300 + 2250/(1+.26)^1 + 2250/(1+.26)^2 + 2250/(1+.26)^3 + 2250/(1+.26)^4 + 2250/(1+.26)^5 + 2250/(1+.26)^6 + 2250/(1+.26)^7 + 2250/(1+.26)^8 + 2250/(1+.26)^9 = -1727.27 Part C: 19% is the discount rate. Thanks.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.