# Net present value | Accounting homework help

You are analyzing a project and have prepared the following data:

Year Cash flow

0 -\$169,000

1 \$46,200

2 \$87,300

3 \$41,000

4 \$39,000

The WACC is 8.50%. What is the project s NPV? Will you accept or reject the project? Explain.

ABC Service can purchase a new assembler for \$15,052 which will provide an annual net cash flow of \$6,000 per year for five years. Calculate the NPV of the assembler if the required rate of return is 12%.

Artie’s Soccer Ball Company is considering a project with the following cash flows:

 Initial outlay \$750,000 Incremental after-tax cash flows from operations Years 1-4 \$250,000 per year

Compute the NPV of this project if the company’s discount rate is 12%.

Your firm is considering a project that has the following set of cash flows. If the required rate of return for the project is 10%, find the net present value.

 Year Cash Flow 0 -\$35,000 1 10,000 2 20,000 3 10,000 4 30,000

The following present value factors are provided for use in this problem.

 Periods Present Value of \$1 at 8% Present Value of an Annuity of \$1 at 8% 1 0.9259 0.9259 2 0.8573 1.7833 3 0.7938 2.5771 4 0.7350 3.3121

Xavier Co. wants to purchase a machine for \$38,000 with a four-year life and a \$1,100 salvage value. Xavier requires an 8% return on investment. The expected year-end net cash flows are \$13,000 in each of the four years.

What is the machine’s net present value?

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