Home » If the opportunity cost of capital is 11%, what is the NPV for each project

If the opportunity cost of capital is 11%, what is the NPV for each project

Consider the following projects:Cash Flows, $Project C0 C1 C2 C3 C4 C5A –1,500 +1,500 0 0 0 0B –3,000 +1,500 +1,500 +4,500 +1,500 +1,500C –3,750 +1,500 +1,500 0 +1,500 +1,500If the opportunity cost of capital is 11%, what is the NPV for each project? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.)Project NPVA $B $C $Calculate the payback period for each project. (Do not round intermediate calculations. Round your answer to 2 decimal places.)Project Payback PeriodA year(s)B year(s)C year(s)Calculate the discounted payback period for each project. (Enter 0 if the payback period cannot be calculated. Do not round intermediate calculations. Round your answers to 2 decimal places.)Project Discounted Payback PeriodA year(s)B year(s)C year(s)You have the chance to participate in a project that produces the following cash flows:Cash Flows, $C0 C1 C2+5,000 +4,000 –11,000The internal rate of return is 13%. If the opportunity cost of capital is 10%, what is the NPV of the project? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.)Machines A and B are mutually exclusive and are expected to produce the following real cash flows:Cash Flows ($ thousands)Machine C0 C1 C2 C3A –102 +112 +123B –122 +112 +123 +135The real opportunity cost of capital is 12%. (Use PV table.)Calculate the NPV of each machine. (Do not round intermediate calculations. Enter your answers in thousand rounded to the nearest whole number.)Machine NPVA $B $Calculate the equivalent annual cash flow from each machine. (Do not round intermediate calculations. Round “PV Factor” to 3 decimal places. Enter your answers in thousand rounded to the nearest whole number.)Machine Cash flowA $B $

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