Use the information in the table below for the following 4 questions. A capital investment project is estimated to have
Posted: Sun Apr 17, 2022 6:20 pm
questions. A capital investment project is estimated to have the following cash flows, by year: Year NI CF 0 0 -75,000 1 1,263 25,250 2 645 21,500 3 1,098 27,450 4 2,416 48,320 The company utilizes a discount rate of 15% to evaluate capital projects and has an average book value of $7,500. You may have rounding errors in your calculations so choose the closest answer. Assume cash flows are received equally over the year. What is the net present value for the project? O $15,951 O $18,378 O $13,618 O $16,347 O $8,890
What is the internal rate of return for the project? 13.05% O Not enough information is given to calculate the IRR. O 15.00% O 5.71% O 20.10%
What is the payback period for the project? O 4.00 3.02 O 3.68 O 3.32 O 3.57
What is the average accounting return of the project? O 126.72% O 14.46% O 408.40% O 4.42% O 18.07%
Use the information in the table below for the following 4 What is the internal rate of return for the project? 13.05% O Not enough information is given to calculate the IRR. O 15.00% O 5.71% O 20.10%
What is the payback period for the project? O 4.00 3.02 O 3.68 O 3.32 O 3.57
What is the average accounting return of the project? O 126.72% O 14.46% O 408.40% O 4.42% O 18.07%