Net present value: the cyclone golf resorts is redoing its golf
Net present value: The Cyclone Golf Resorts is redoing its golf course at a cost of $2,744,320. It expects to generate cash flows of $1, 223,445, $2,007,812, and $3,147,890 over the next three years. If the appropriate discount rate for the firm is 13 percent, what is the NPV of this project?
Payback: Elmer Sporting Goods is getting ready to produce a new line of gold clubs by investing $1.85 million. The investment will result in additional cash flows of $525,000, $812,500, and 1,200,000 over the next three years. What is the payback period for this project?
Internal rate of return: Quick Sale Real Estate Company is planning to invest in a new development. The cost of the project will be $23 million and is expected to generate cash flows of $14,000,000, $11,750,000, and $6,350,000 over the next three years. The company’s cost of capital is 20 percent. What is the internal rate of return on this project? (Round to the nearest percent.)
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Given the following cash flows for a capital project, calculate the NPV and IRR. The required rate of return is 8 percent.
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Year |
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0 |
1 |
2 |
3 |
4 |
5 |
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Cash Flows |
$-46904 |
$11330 |
$11675 |
$23308 |
$8899 |
$4232 |
