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    Bài tập nhóm chương 7-SV

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    hovugiahuy2

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    Bài tập nhóm chương 7-SV

    Uploaded by

    hovugiahuy2
    1 views2 pages

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    Bài tập nhóm chương 7-SV

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    Bài tập nhóm chương 7

    1. Project A has the following cash flows.


    Year Cash flow
    $
    0 (257,000)
    1 85,000
    2 90,000
    3 65,000
    4 68,000
    5 18,000
    What is project A's payback period?

    2. Calculate the effective annual rate of interest (to two decimal places) of 0.8% per month,
    compound.

    3. An investment project has net present values as follows:


    At a discount rate of 8% $3,200 positive
    At a discount rate of 15% $2,800 negative
    Using the above figures, what is the BEST approximation of the internal rate of return of the
    investment project?

    4. Using an interest rate of 12% per year the net present value (NPV) of a project has been
    correctly calculated as $60. If the interest rate is increased by 6% the NPV of the project falls by
    $80. What is the internal rate of return (IRR) of the project?

    At 18% interest rate, NPV decreases by $80 => NPV = $60 - $80 = -$20
    IRR=12%+(8060)×6%=12%+4.5%=16.5%

    5. Project A has the following cash flows.


    Year Cash flow
    $
    0 -800,000
    1 250,000
    2 350,000
    3 370,000
    4 100,000
    5 50,000
    The company's cost of capital is 12%.
    What is the discounted payback period of Project A?

    6. If the interest rate is 6.5%, what would you pay for a perpetuity of $1,300 starting in one year's
    time? (to the nearest $)

    7. An investor is to receive an annuity of $16,000 for six years commencing at the end of year 1.
    It has a present value of $69.680. What is the rate of interest (to the nearest whole percent)?
    8. A sum of money was invested for 8 years at 5% per year and is now worth $5,000. What was
    the original amount invested (to the nearest $)

    9. The following information relates to a two-year project.


    Initial investment $2 million
    Cash inflow Year 1 $1,500,000
    Cash inflow Year 2 $ 900,000
    Cost of capital Year 1 10%
    Cost of capital Year 2 15%
    What is the net present value of the project (to the nearest $500)?

    10. A project costs $121,312. If its life is expected to be five years and the cost of capital is 10%,
    what are the minimum annual savings required to make the project worthwhile? (NPV>=0)
    Initial Cost
    Annual Savings=
    PVA

    −5
    1−(1+ 0.1) 121,312
    PVA= =3.7908 => Annual Savings= =32,010.20
    0.1 3.7908

    11. A project costs $40,000. It would earn $12,000 per year for the first three years and then
    $7,000 per year for the next three. Cost of capital is 11%. Is the project worth undertaking?

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