ATL International evaluates capital projects using the net present value, internal rate of return, profitability index, and payback methods. Project XYZ has an IRR of 14.5%, profitability index of 1.0, an initial cash outflow of $375,000, and a payback period of 5 years and 0 months. For capital projects management requires a rate of return of 14.5%. What is the project's net present value?

A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows: -$25,000 today (t=0); $11,000 after one year (t=1), 17,000 after two years (t=2); and 10,000 after three years (t=3). What is the Internal Rate of Return (“IRR”) for this project?

A firm evaluates a project with the following cash flows. The firm has a 2 year payback period criteria and a required return of 12 percent. Year Cash flow (OMR) year 0: -26,000, year 1: 18,000, year 2: 10,000, year 3: 7,000, year 4: -15,000, year 5: 9,000. 11. What is the net present value for the project? 12. What is the payback period for the project? 13. What is the discounted payback period for the project? 14. What is the profitability index for the project? 15. Given your analysis, should the firm accept or reject the project?

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 –$ 28,400   1   12,400   2   15,400   3   11,400 If the required return is 15 percent, what is the IRR for this project?   Should the firm accept the project?

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?   At a required return of 11 percent, should the firm accept this project?   What is the NPV for the project if the required return is 25 percent?

The expected cash flows of a project are as follows. Year Cash Flow -100000, 20,000 ,30,000 40,000 ,50,000 30,000 The cost of capital is 12 per cent. Calculate the following and evaluate the project under each methods a. net present value b. Profitability Index c. Internal rate of Return d. Modified internal rate of Return and Payback period

The cash flows associated with an investment project are as follows: Project Y (200 000) Year 1 100 000 2 100 000 3 120 000 4 110 000 The discount rate is 8 percent. What's the discount payback period of the projects? (compile a spreadsheet) Calculate NPV, PI of a projects Calculate IRR of a projects Should the firm accept the project? a) b) c) d)

Consider the cash flows for the following investment projects: (a) For Project A. find the value of X that makes the equivalent annual receiptsequal the equivalent annual disbursement at i = 13%.(b) Would you accept Project Bat i = 15% based on the AE criterion?

A project Alpha requires an initial capital outlay of $300,000. Its profitability index is 0.18 . What is the NPV of the project? Answer:

A firm evaluates a project with the following cash flows. The firm has a 2 year payback period criteria and a required return of 17 percent.YearCash flow (OMR)year 0= -39,000year 1= 28,000year 2= 19,000year 3= 14,000year 4= -12,000year 5= 10,000 What is the profitability index for the project?