Please show all the steps required to understand the concept clearly with formula 0.2 [b] Perform sensitivity analysis by investigating annualworth of the "flluin projetofTangeover a20%. in(i) Initial investment(ii) Annual Nd RevenueInitial InvestmentKs 6,00, 000Annual Revenue: Rs 1,10, 000Annval Expenses: Rs 10,000:hs 8000Salvoge Value:15 yearsUseful LifeMARR: 10 %

Concept Sensitivity analysis involves changing the assumptions or estimates in a calculation to see…

0.2 EbJ Perform semsivity analysis by invetigating annual worth of the "fllouing projet of iange over 20%. in (i) Initial investment (ii) Annual Net hevenue his 6,00, 000 Initial Investment Annual Revenue Rs 1,10, 000 Annual Expenses : Rs 19,000 :hs 8000 Salvage Value Useful Life :15 years MARR : 10 %.

0.2 EbJ Perform semsivity analysis by invetigating annual worth of the "fllouing projet of iange over 20%. in (i) Initial investment (ii) Annual Net hevenue his 6,00, 000 Initial Investment Annual Revenue Rs 1,10, 000 Annual Expenses : Rs 19,000 :hs 8000 Salvage Value Useful Life :15 years MARR : 10 %.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

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The following information is available for Multicomm Limited : Asset/Sales is 0.9, change in sales is Rs.50 million, Liability/Sales is 0.60, Net Profit Margin is 7 percent, S1=Rs.250 million and retention ratio = 0.8. How much fund will the firm be able to generate internally for the forthcoming year a. 14 million b. 0.8 million c. 1.5 million d. 1 million
Consider an investment with an initial cost of $10,000 and uniform annual revenue of $2,500 per year over the next five years. (a) Show that the IRR for this investment is 7.9308%. (b) Explain why is the IRR in (a) less than 2,500/10,000 = 25%.
Lipsion Ltd company is thinking about investing in one of two potential new productsfor sale. The projections are as follows: year revenue/ product s revenue/ product v0 (150,000) outlay (150000) outlay1 14000 150002 24000 253333 44000 520004 84000 63333 Calculate the IRR for Product V only using 1% and 17% to 2 d.p.
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ABC Enterprise would like to evaluate/analyze a potential investment.. Given the following:Investment amount - 450,000 (2022)Dividends / Revenue stream - 100,000 for the first year and an interval of 5,000 for the succeeding years Discount rate - 14%a. NPV for the perio 2023 through 2029;b. Total NPV using manual computation;c. Total NPV using the Excel function; andd. IRR rate.
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