A company is considering entering into a joint venture that will require an investment of $15 million. The project is expected to generate cash flows of $9 million and $8 million in each of the next two years, respectively. What is the project"s IRR
A: 9%
B: 14%
C: 15%
A: 9%
B: 14%
C: 15%
举一反三
- A company is considering entering into a joint venture that will require an investment of $30 million. The project is expected to generate cash flows of $7 million, $14 million, and $15 million in each of the next three years, respectively. Assuming a discount rate of 7%, what is the project"s NPV A: -$5343200 B: -$3702900 C: +$1563400
- Initial Investment Cash flowProject A $35 million $14 million per year for four yearsProject B $21 million $7 million per year for five years Project C $14 million $7 million per year for four years Project D $21 million $10.5 million per year for three years An investor has a budget of $35 million. He can invest in the projects shown above. If the cost of capital is 8%, what investment or investments should he make? A: Project A B: Project B C: Project B and Project C D: Project C and Project D
- Year 1 2 3 4Free Cash Flow $12 million $18 million $22 million $26 millionConundrum Mining is expected to generate the above free cash flows over the next four years, after which they are expected to grow at a rate of 6% per year. If the weighted average cost of capital is 12% and Conundrum has cash of $80 million, debt of $60 million, and 30 million shares outstanding, what is Conundrum's expected terminal enterprise value at year 4? A: $413.4 million B: $459.3 million C: $505.3 million D: $528.2 million
- The gain from a<br/>project is equally likely to have any value between -$0.15 million<br/>and +$0.85 million. What is the 99% expected shortfall? ( ) A: $0.145 million B: $0.14 million C: $0.13 million D: $0.10 million
- A company entered into a three-year construction project with a total contract price of $5.3 million and expected cost of $4.4 million. The following table provides cash flow information relating to the contract:（） A: 3013645 B: 2956036 C: 3616636