Problem 11.01 – NPV of Project L
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition, 10th Edition, and 11th Edition
Given the cost, expected cash inflows, and WACC… determine the NPV of project L.
Given the cost, expected cash inflows, and WACC… determine the NPV of project L.
Given project L’s cost, cash inflows, and WACC… determine the IRR of the project.
Given the cost, expected cash inflows, and WACC… determine the MIRR for project L.
Calculate the payback period for Project L given its initial outlay, expected cash inflows, and the weighted average cost of capital (WACC).
NOTE: This solver solves for the payback AND for the discounted payback.
Calculate the discounted payback period for Project L given its initial outlay, expected discounted cash inflows, and the weighted average cost of capital (WACC).
Your division is considering two projects with the following cash flows (in millions).
Given two cash flow timelines for project M and project N… calculate the NPV, IRR, MIRR and discounted payback for each project and make a recommendation.
Given the additional amount firm could spend, initial outlay cost, and expected cash inflows… determine the NPV and IRR with and without mitigation, and decide how the environmental effects should be dealt with.
Given the additional amount they can spend, plant cost, expected cash inflows, annual inflows, and WACC… calculate the NPV, IRR, how they should deal with economic effects, and if the project should be undertaken.
Given the WACC and the information on the mutually exclusive projects… find which project you’d recommend.