USA: +1(669)289-8683 
Sign in
20 total questions.
1.value:
5.00 points
What is the payback period for the following set of cash flows? (Round your answer to 2 decimal places. (e.g., 32.16))
Year Cash Flow
0 –$ 5,700
1 1,350
2 1,550
3 1,950
4 1,450
Payback period years
2.value:
5.00 points
An investment project provides cash inflows of $720 per year for eight years. What is the project payback period if the initial cost is $1,925? What if the initial cost is $3,750? What if it is $5,800?
What is the project payback period if the initial cost is $1,925? (Enter 0 if the project never pays back. Round your answer to 2 decimal places. (e.g., 32.16))
Payback period years
What is the project payback period if the initial cost is $3,750? (Enter 0 if the project never pays back. Round your answer to 2 decimal places. (e.g., 32.16))
Payback period years
What is the project payback period if the initial cost is $5,800? (Enter 0 if the project never pays back. Round your answer to 2 decimal places. (e.g., 32.16))
Payback period years
3.value:
5.00 points
Buy Coastal, Inc., imposes a payback cutoff of three years for its international investment projects.
Year Cash Flow
(A) Cash Flow (B)
0 –$ 68,000 –$ 78,000
1 27,000 19,000
2 36,000 22,000
3 25,000 34,000
4 12,000 238,000
What is the payback period for both projects? (Round your answers to 2 decimal places. (e.g., 32.16))
Payback period
Project A
years
Project B
years
Which project should the company accept?
| Project A |
| Project B |
4.value:
5.00 points
An investment project has annual cash inflows of $3,800, $4,700, $5,900, and $5,100, and a discount rate of 14 percent.
What is the discounted payback period for these cash flows if the initial cost is $6,500? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
Discounted payback period years
What is the discounted payback period for these cash flows if the initial cost is $8,600? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
Discounted payback period years
What is the discounted payback period for these cash flows if the initial cost is $11,600? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
Discounted payback period years
5.value:
5.00 points
An investment project costs $10,000 and has annual cash flows of $2,940 for six years.
What is the discounted payback period if the discount rate is zero percent? (Enter 0 if the project never pays back. Round your answer to 2 decimal places. (e.g., 32.16))
Discounted payback period years
What is the discounted payback period if the discount rate is 6 percent? (Enter 0 if the project never pays back. Round your answer to 2 decimal places. (e.g., 32.16))
Discounted payback period years
What is the discounted payback period if the discount rate is 20 percent? (Enter 0 if the project never pays back. Round your answer to 2 decimal places. (e.g., 32.16))
Discounted payback period years
6.value:
5.00 points
A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows:
Year Cash Flow
0 –$ 27,400
1 11,400
2 14,400
3 10,400
If the required return is 16 percent, what is the IRR for this project? (Round your answer to 2 decimal places. (e.g., 32.16))
IRR %
Should the firm accept the following project?
|
Yes |
|
No 7.value: 5.00 points A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Year Cash Flow 0 –$ 28,900 1 12,900 2 15,900 3 11,900 What is the NPV for the project if the required return is 11 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) NPV $ At a required return of 11 percent, should the firm accept this project? Yes No What is the NPV for the project if the required return is 25 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) NPV $ At a required return of 25 percent, should the firm accept this project? Yes No 8.value: 5.00 points A project that provides annual cash flows of $16,300 for eight years costs $69,000 today. What is the NPV for the project if the required return is 7 percent? (Round your answer to 2 decimal places. (e.g., 32.16)) NPV $ At a required return of 7 percent, should the firm accept this project? Accept Reject What is the NPV for the project if the required return is 19 percent? (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places. (e.g., 32.16)) NPV $ At a required return of 19 percent, should the firm accept this project? Accept Reject At what discount rate would you be indifferent between accepting the project and rejecting it? (Round your answer to 2 decimal places. (e.g., 32.16)) Discount rate % IRR % What is the NPV at a discount rate of zero percent? NPV $ What is the NPV at a discount rate of 10 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) NPV $ What is the NPV at a discount rate of 19 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) NPV $ What is the NPV at a discount rate of 30 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) NPV $ Year Cash Flow (A) Cash Flow (B) a-1 IRR Project A Project B a-3 Is this decision necessarily correct? Yes No b-1 NPV b-2 Which project will the company choose if it applies the NPV decision rule? Project A Project B c. Discount rate % Year Cash Flow (X) Cash Flow (Y) Calculate the IRR for each project. (Round your answers to 2 decimal places. (e.g., 32.16)). IRR What is the crossover rate for these two projects? (Round your answer to 2 decimal places. (e.g., 32.16)). Crossover rate % What is the NPV of Projects X and Y at discount rates of 0%, 15%, and 25%? (Negative amount should be indicated by a minus sign. Round your answers to 2 decimal places. (e.g., 32.16)) Year Cash Flow a-1 NPV $ Yes No b- This project has two IRR’s, namely _____?____ percent and _____?______percent, in order from smallest to largest. (Note: If you can only compute one IRR value, you should input that amount into both answer boxes in order to obtain some credit.) (Negative amount should be indicated by a minus sign. Round your answers to 2 decimal places. (e.g., 32.16)) 14.value: What is the profitability index for the set of cash flows if the relevant discount rate is 11 percent? (Do not round intermediate calculations and round your final answer to 3 decimal places. (e.g., 32.161)) Profitability index What is the profitability index for the set of cash flows if the relevant discount rate is 16 percent? (Do not round intermediate calculations and round your final answer to 3 decimal places. (e.g., 32.161)) Profitability index What is the profitability index for the set of cash flows if the relevant discount rate is 23 percent? (Do not round intermediate calculations and round your final answer to 3 decimal places. (e.g., 32.161)) Profitability index Year Cash Flow (I) Cash Flow (II) a-1 Profitability Index Project I Project Il b-1 NPV Project I Project II 16.value: Year Cash Flow (A) Cash Flow (B) Whichever project you choose, if any, you require a 15 percent return on your investment. a-1 Project A Project B b-1 What is the discounted payback period for each project? (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)) Project A Project B c-1 What is the NPV for each project? (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)) e-1 What is the profitability index for each project? (Do not round intermediate calculations and round your final answers to 3 decimal places. (e.g., 32.161)) If the discount rate is zero, what is the NPV? NPV $ If the discount rate is infinite, what is the NPV? (Negative amount should be indicated by a minus sign.) NPV $ At what discount rate is the NPV just equal to zero? (Round your answer to 2 decimal places. (e.g., 32.16)) IRR % The company uses an interest rate of 8 percent on all of its projects. Calculate the MIRR of the project using the discounting approach method. (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) MIRR % Calculate the MIRR of the project using the reinvestment approach method. (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) MIRR % MIRR % Year Cash Flow The company uses a discount rate of 12 percent and a reinvestment rate of 7 percent on all of its projects. Calculate the MIRR of the project using the discounting approach method. (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) MIRR % Calculate the MIRR of the project using the reinvestment approach method. (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) MIRR % MIRR % Year Cash Flow All cash flows will occur in Erewhon and are expressed in dollars. In an attempt to improve its economy, the Erewhonian government has declared that all cash flows created by a foreign company are “blocked” and must be reinvested with the government for one year. The reinvestment rate for these funds is 3 percent. If Anderson uses a required return of 12 percent on this project, what are the NPV and IRR of the project? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)) NPV $ |
