You will be evaluating three projects for Hasbro Toys. Hasbro's cost of capital or discount rate...

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Finance

You will be evaluating three projects for Hasbro Toys. Hasbro'scost of capital or discount rate is 10%. The first project (A) willcost $25,000 initially. The project will then return cash flows of$8,000 for 4 years. The second project (B) will cost $40,000initially. The project will then return cash flows of $15,000 forthe next 2 years and $10,000 for 2 years after that. The thirdproject (C) will cost $30,000 initially. The project will thenreturn cash flows of $12,000 for 3 years
What is Projects C's NPV, IRR, Payback Period, and PI? Show stepby step and circle final answer.

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4.4 Ratings (693 Votes)

Project A Net present value is solved using a financial calculator The steps to solve on the financial calculator Press the CF button CF0 25000 It is entered with a negative sign since it is a cash outflow Cash flow for all the years should be entered Press Enter and down arrow after inputting each cash flow After entering the last cash flow press the NPV button and enter the discount rate of 10 Press the down arrow and CPT buttons to get the net present value Net Present value of cash flows at 10 discount rate is 35892 Internal rate of return is calculated using a financial calculator by inputting the below Press the CF button CF0 25000 It is entered with a negative sign since it is a cash outflow Cash flow for each year should be entered Press Enter and down arrow after inputting each cash flow After entering the last cash flow cash flow press the IRR and CPT button to get the IRR of the project The IRR of the project is 1066 Payback Period Payback period full years until recovery unrecovered cost at the start of the yearcash flow See Answer

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You will be evaluating three projects for Hasbro Toys. Hasbro'scost of capital or discount rate is 10%. The first project (A) willcost $25,000 initially. The project will then return cash flows of$8,000 for 4 years. The second project (B) will cost $40,000initially. The project will then return cash flows of $15,000 forthe next 2 years and $10,000 for 2 years after that. The thirdproject (C) will cost $30,000 initially. The project will thenreturn cash flows of $12,000 for 3 yearsWhat is Projects C's NPV, IRR, Payback Period, and PI? Show stepby step and circle final answer.