College Of Charleston Operations And Supply Chain Management Assignment Help - NPV Valuation

Question - I
Year Cash Flow
0 %u2013$ 3,024
1 17,172
2 %u2013 36,420
3 34,200
4 %u2013 12,000


This problem is useful for testing the ability of financial calculators and computer software. Consider
the above cash flows. The IRRs, from smallest to largest, are _________percent, __________
percent, ___________percent, and ________ percent. (Hint: search between 20 percent and 70
percent.)

II
The Yurdone Corporation wants to set up a private cemetery business. According to the
CFO, Barry M. Deep, business is "looking up". As a result, the cemetery project will
provide a net cash inflow of $96,000 for the firm during the first year, and the cash flows
are projected to grow at a rate of 5 percent per year forever. The project re ...Read More quires an initial
investment of $1,490,000.

What is the NPV for the project if Yurdone's required return is 10 percent?

The company is somewhat unsure about the assumption of a 5 percent growth rate in its
cash flows. At what constant growth rate would the company just break even if it still
required a return of 10 percent on investment? ...Read Less

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