George Systems is considering a project that has the following cash flow and WACC data.

What is the project’s NPV

WACC  9%
Year                    0                      1                      2                      3
Cash flows         -$1000              $500              $500             $500

Shultz Enterprises is considering a project that has the following cash flow and WACC data. What is the project’s NP

WACC:
Year
11.00% 0 1 2 3 4
Cash flows −$1,000 $350 $350 $350 $350

Jones Inc. is considering a project that has the following cash flow and WACC data. What is the project’s NPV? Shou

WACC:
Year
10.25% 0 1 2 3 4
Cash flows −$1,000 $300 $300 $300 $300

Robles Corp. is considering a project that has the following cash flow and WACC data. What is the NPV? Should the

WACC 8%
Year 0 1 2 3 4
Cash flows −$1,000 $425 $425 $200 $100

What is Net Present Value (NPV)? How is it used for making corporate decisions?

A method of ranking investment proposals using the NPV, which is equal to the present value of the project’s free cas
Corporations use the NPV to make decisions if they want to go ahead with a project. They want to see if the project w

What is Internal Rate of Return (IRR)? How does it compare to NPV?

The discount rate that forces a project’s NPV to equal zero.

The same basic equation is used for both methods. The only difference is that with the NPV method the discount rate
method the NPV is set equal to zero and we find the interest rate that produces this equality.
C data. What is the project’s NPV? Should this project be accepted or rejected?

$1,265.65 $265.65
1000 Accepted

CC data. What is the project’s NPV? Should the project be accepted or rejected?

$1,085.86 $85.86
$1,000.00 Accepted

. What is the project’s NPV? Should the project be accepted or rejected?

$1,130.01 $130.01
5 1000 Accepted
$300

data. What is the NPV? Should the project be accepted or rejected?

$990.16 ($9.84)
$1,000.00 Rejected

esent value of the project’s free cash flows discounted at the cost of capital.
t. They want to see if the project will be profitable or not.

the NPV method the discount rate is given and we find the NPV; while with the IRR