Net present value: the cyclone golf resorts is redoing its golf


Net confer-upon estimate: The Cyclone Golf Resorts is redoing its golf method at a absorb of $2,744,320. It expects to beget coin flows of $1, 223,445, $2,007,812, and $3,147,890 aggravate the contiguous three years. If the mismisappropriate abatement admonish for the established is 13 percent, what is the NPV of this design?

Payback: Elmer Sporting Goods is getting unhesitating to amount a new thread of gold clubs by endueing $1.85 favorite. The bombardment get consequence in joined coin flows of $525,000, $812,500, and 1,200,000 aggravate the contiguous three years. What is the payback epoch for this design?

Internal admonish of give-back: Quick Sale Real Estate Company is planning to endue in a new outgrowth. The absorb of the design get be $23 favorite and is expected to beget coin flows of $14,000,000, $11,750,000, and $6,350,000 aggravate the contiguous three years. The company's absorb of excellent is 20 percent. What is the interior admonish of give-back on this design? (Round to the unswerving percent.)

 

Problem 10.42

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An bombardment of $98 begets after-tax coin flows of $37 in Year 1, $86 in Year 2, and $121 in Year 3. The required admonish of give-back is 20 percent. The net confer-upon estimate is closest to

Given the forthcoming coin flows for a excellent design, compute the NPV and IRR. The required admonish of give-back is 8 percent.

 

Year

 

0

1

2

3

4

5

Cash Flows

$-46904

$11330

$11675

$23308

$8899

$4232