Problem 9.18 – NPV and Discount Rates
Fundamentals of Corporate Finance
Ross, Westerfield, and Jordan
13th Edition
Given cash flows and discount rates, find the NPV and IRR.
Given cash flows and discount rates, find the NPV and IRR.
Conduct a best-case and worst-case scenario analysis using the given estimates for the price, variable costs, fixed costs, and quantity, accounting for the specified uncertainty level in the estimates. Complete the grid of scenarios for the base case, best case, and worst case.
Given cash flows and interest rate, calculate MIRR using the discounting, reinvestment, and combination approach methods.
Given cash flows, discount rate, and reinvestment rate, calculate MIRR using the discounting, reinvestment, and combination approach methods.
Calculate the base-case operating cash flow and NPV, determine the sensitivity of NPV to changes in sales and OCF to changes in variable costs, and analyze the impact of changes in projected sales and variable costs on NPV and OCF.
Calculate the best-case and worst-case NPV figures for the project, considering the given estimates for cost, life, depreciation, sales, price, variable and fixed costs, tax rate, and required return, while accounting for the specified uncertainty level.
Calculate the payback period, NPV, and IRR for the project, considering the initial costs, marketing survey, sales projections, fixed and variable costs, equipment costs, depreciation, tax rate, and required return.
Calculate the project’s NPV, considering the cost of the new machine press, annual pretax cost savings, depreciation, salvage value, initial and annual investments in spare parts inventory, tax rate, and discount rate.
Calculate the project’s NPV, considering the cost of the equipment, bonus depreciation, equipment resale value, sales projections, fixed and variable costs, initial and returned investment in NWC, tax rate, and required return.
Given the cash flows calculate the IRR and the NPV’s with the given three discounts.