question archive The table below shows Actual-Dollar cash flows of a proposed project of yours
The table below shows Actual-Dollar cash flows of a proposed project of yours
Subject:EconomicsPrice: Bought3
The table below shows Actual-Dollar cash flows of a proposed project of yours. If the real (inflation free) interest rate is 5% and inflation rate is 3%, calculate the Constant-Dollar (real, inflation free) NPW for the project. EOY Cash Flow 0 1 -$60,000 $25,000 $23,000 2 3 $21,000 Question 1 Part A: Select the appropriate inflation/interest rates for this scenario from below. O i' = 3%, f = 5% O i = 3%, f = 5% O i' = 5%, f = 3% O i' = 5%, i - 3% The table below shows Actual-Dollar cash flows of a proposed project of yours. If the real interest rate is 5% and inflation rate is 3%, calculate the Constant-Dollar NPW for the project. EOY Cash Flow 0 -$60,000 1 $25,000 2 $23,000 3 $21,000 Question 1 Part B: Provide the Market interest rate for this scenario. Enter your answer in the format: 12.34 (for a rate of 12.34%, enter 12.34) The table below shows Actual-Dollar cash flows of a proposed project of yours. If the real interest rate is 5% and inflation rate is 3%, calculate the Constant-Dollar NPW for the project. EOY Cash Flow 0 -$60,000 1 $25,000 2 $23,000 3 $21,000 Question 1 Part C: Provide the Constant Dollar NPW for this project. Enter your answer in the form: 1234.56 The table below shows Actual-Dollar cash flows of a proposed project of yours. If the real interest rate is 5% and inflation rate is 3%, calculate the Constant-Dollar NPW for the project. EOY Cash Flow 0 -$60,000 1 $25,000 2. $23,000 3 $21,000 Question 1 Part D: Provide a statement for your answer to Part C. Should this project be funded? The project should not be funded because the Constant-Dollar NPW is negative. The project should not be funded because the Actual-Dollar NPW is negative. The project should be funded because the Constant-Dollar NPW is positive. The project should be funded because the Actual-Dollar NPW is positive.
