Project K costs S45.000. its expected cash inflows are $11.000 per year for 8 ye
ID: 2732491 • Letter: P
Question
Project K costs S45.000. its expected cash inflows are $11.000 per year for 8 years, and its WACC is 9%. What is the project's NPV? Round your answer to the nearest cent. Project K costs S49.776.30. its expected cash inflows are SI2.000 per year for 8 years, and its WACC is 11%. What is the project's IRR? Round your answer to two decimal places. Project K costs S45.000. its expected cash inflows are S8.000 per year for 8 years, and its WACC is 10%. What is the project's MIRR? Round your answer to two decimal places. Project K costs S60.000. its expected cash inflows are $14.000 per year for 9 years, and its WACC is 14%. What is the project's payback? Round your answer to two decimal places. Project K costs S50.000. its expected cash inflows are $12.000 per year for 8 years, and its WACC is 12%. What is the project's discounted payback? Round your answer to two decimal places.Explanation / Answer
Answer
6
NPV=$ 15,883
Working notes for the above answer
We have been provided with the information as follow
Now we will calculate NPV as follow
7
IRR=17.45%
Working notes for the above answer
We have been provided with the information as follow
Now we will calculate IRR as follow
IRR=(49776.30) +12000(1+r)+12000(1+r)2+12000(1+r)3+12000(1+r)4+12000(1+r)5+12000(1+r)6+12000(1+r)7+12000(1+r)8
Solving this equation By trial and error method we will get
IRR=17.45%
9
Pay Back Period =4 year and 104 days
Working notes for the above answer
We have been provided with the information as follow
Now we will calculate Payback period as follow
Payback period=
=4000*365/14000
=104
So payback Period =4 year and 104 days
10
Discounted pay Back Period =6 year and 45 days
Working notes for the above answer
We have been provided with the information as follow
Now we will calculate Payback period as follow
Discounted Payback period=
=663.112*365/5428.19
=44.49
=45 days
So payback Period =6 year and 45 days
Particular Amount Project K Cost $45,000 Inflow Per Year $11,000 Life 8 Year WACC 9%Related Questions
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