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Homework answers / question archive / 6A4) Find the Discounted Payback period for the following project
6A4) Find the Discounted Payback period for the following project. The discount rate is 8%
Project X
Initial Outlay $17,001
Year 1 $5,585
Year 2 $5,991
Year 3 $5,589
Year 4 $8,844
Round the answer to two decimal places.
6B4) A project has an initial outlay of $3,455. It has a single payoff at the end of year 5 of $8,619. What is the net present value (NPV) of the project if the company's cost of capital is 12.66 percent?
Round the answer to two decimal places.
6C4) Find the modified internal rate of return (MIRR) for the following series of future cash flows if the company is able to reinvest cash flows received from the project at an annual rate of 12.09 percent.The initial outlay is $428,900.
Year 1: $135,100
Year 2: $188,000
Year 3: $184,500
Year 4: $120,900
Year 5: $184,100
Round the answer to two decimal places in percentage form.
6D4) A project has an initial outlay of $1,249. It has a single payoff at the end of year 9 of $8,002. What is the profitability index (PI) of the project, if the company's cost of capital is 5.90 percent?
Round the answer to two decimal places.
6F3) ?Paul Sharp is CFO of Fast Rocket Inc. He tries to determine the cost of equity financing for his company. The stock has a beta of 0.80. Paul estimated that the market return is 9.06%. The current rate for 10-year Treasury Bonds is 2.37%. Calculate cost of common equity financing using CAPM - SML formula.
Round the answers to two decimal places in percentage form.
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