1. An investment has the following cash flows - what is the payback ? Question 1 Year 0 -120,000 30,000 Year 1 Year 2 40,000 Year 3 60,000 Year 4 90,000 Year 5 90,000 3 years 3 years 10 months 2 years 10 months O 3 years 8 months
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A: Year Cash Flows 0 -90,000 1 45,000 2 10,000 3 30,000 4 30,000
Q: 2. At an interest rate of 10% per year, calculate the capitalized cost of $10,000 (cost) in year 0,…
A: Capitalized Cost=-Initial Cost-Annual Payment×(P/A, r%, n years)-Terminal Payment×(P/F, r%, n years)
Q: 2. An investment has the following cash flows - what is the payback ? Question 2 -90,000 45,000…
A: Introduction Payback period: It is the method of capital investment evaluation. This method…
Q: 3. An investment has the following cash flows. What is the ARR? Year 0 -120,000 30,000 40,000 60,000…
A: Cost of Investment : $120,000 Project Life : 5 Years Depreciation per year : $120,000 / 5 = $24,000…
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A: IRR is one of the capital budgeting techniques that is used for evaluating various investment…
Q: Consider the following cash flow: Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8…
A: IRR stands for internal rate of return. When used, it estimates the profitability of potential…
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A: Computation:
Q: Compute the payback period for an investment with the following net cash flows. (Round your answer…
A: >Payback period is the amount of time it will take to get the money invested back. >It is…
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A: 1.Calculate the present value as follows:
Q: what is its present value? Its future value?
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A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…
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Q: Exercise 1 Masipag has an investment opportunity costing P300,000 that is expected to yield the…
A: Here we are provided with an investment opportunity which has an initial cash outflow and then cash…
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A: Before we get into the solution, let's understand two reciprocal concepts:If present value (PV) is…
Q: 16. You are considering an investment with the following cash flows: Year Cash Flow 0…
A: Year Cash Flow 0 -$50,000 1 $ 7,000 2 $ 4,000 3 $9,000 4 $61,000
Q: Assume that an Investment provides the following cash Inflows over a three-year perlod: Year 1 $…
A: PV= Cash inflow* Discounting factor of that year
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A: Since the question has multiple sub parts, I will address the first five sub parts. Please post the…
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A: To Find: Rate of return:
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A: Using the cumulative table in excel
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A: Given That : Cashflow = $6,000 now , $2500 two years from now and $4500 six years from now Interest…
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A: IRR is the rate at which the NPV is zero.
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A: We will use the concept of time value of money. As per the concept of time value of money for…
Q: flows for an investment with an economic life of 5 years are as follows: k0 = -10000, k1 = k2 = k3 =…
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A:
Q: Exercise 2 Masikap has an investment opportunity costing P180,000 that is expected to yield the…
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Q: Consider another set of net cash flows: Year Cash flow 0 1,000 1 1,000 2 0 3 1,500 4…
A: Net present value is excess of present value of cash inflows over present value of cash outflows.…
Q: What is the present value of an investment with the following cash flows? Year 1 $14,000 Year 2…
A: Solution:- Present value means the value in today’s terms after discounting the future cash flows to…
Q: Consider another set of net cash flows: Year Cash flow 0 1,500 1 2,000 2 0 3 1,500 4…
A: Formulas:
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- EQUIVALENT ANNUAL ANNUITY Faleye Consulting is deciding which of two computer systems to purchase. It can purchase state-of-the-art equipment (System A) for 21,000, which will generate cash flows of 6,000 at the end of each of the next 6 years. Alternatively, the company can spend 11,000 for equipment that can be used for 3 years and will generate cash flows of 6,000 at the end of each year (System B). If the company's WACC Is 10% and both "projects" can be repeated indefinitely, which system should be chosen, and what is its EAA?Question 2 Sunshine Corporation is reviewing an investment proposal. The initial cost of the investment isR52 500. The estimated cash flows and net profit for each year are presented in the schedulebelow. All cash flows are assumed to take place at the end of the year. year Net cash flows Net profit R20 000 R2 500 R17 500 R3 500 R15 000 R4 500 R12 500 R5 500 R10 000 R6 500 The cost of capital is 12%. Required:Calculate the following:1. Payback Period 2. Net Present value 3. Accounting rate of returnPROBLEM 2-13 TERM STRUCTURE OF INTEREST RATES (a) Original Investment 20,000.00 Interest rate 8.00% Investment after 2 years23,328.00 Original investment 20,000.00 Interest rate 6.00% Investment after 1 year 21,200.00 Difference 2,128.00 The second year would need to make up for the difference by paying:
- (1). Complete the table for an investment subject to n compoundings yearly A=P1+rnnt. Amount Invested Number of Compounding Periods Annual Interest Rate Accumulated Amount Time t in Years $40,000 365 10.2% $100,000 ? Amount Invested Number of Compounding Periods Annual Interest Rate Accumulated Amount Time t in Years $40,000 365 10.2% $100,000 enter your response here (Round to one decimal place as needed.) (2). Prehistoric cave paintings were discovered in a cave in France. The paint contained 39% of the original carbon-14. Use the exponential decay model for carbon-14, A=A0e−0.000121t,to estimate the age of the paintings. Question content area bottom Part 1 The paintings are approximately enter your response here years old. (Round to the nearest integer.) (3). Use the exponential decay model, A=A0ekt, to solve the following. The half-life of a certain substance is…QUESTION 2 One of the reports submitted by the infrastructure development team revealed the following Year 0 1 2 3 4 Cashflows A -R 210000 ,R15000 ,R 30000 , R 30 000 ,R 370000 Cashflow B -R 21000 , R11000 ,R 9000, R11000, R 9000 Suppose you require a 15 per cent return on investment. 2.1 Using the discounted payback period which investment would you choose and why? 2.2 If you apply the NPV rule which investment, will you choose and why? 2.3 Based on the provided answers which project would you finally choose and why? All parts correctly pls with explanation thanks!1. Mark applied for a business loan of Php 100,000 to be amortized by equal payments at 4 years at 10% compounded monthly. How much is the amount of amortization? III. Construct the amortization table for test II.
- which one is correct please confirm? QUESTION 36 What is the value in 10 years of $10,000 deposited in an account earning 8% compounded monthly? a. $102,530 b. $33,004 c. $22,285 d. $21,589A6) Finance A financial instrument provides three future cash flows: $1,710.00 at the end of 3 years $1,051.74 at the end of 8 years $2,105.93 at the end of 14 years Calculate the duration (D) of the financial instrument at a yield of 6% pa compounded yearly. Give your answer in years to 2 decimal places. D = yearsSOLVE STEP BY STEP SHOW THE ENTIRE PROCEDURE1. Mr. Jiménez was loaned $300,000 pesos payable over 15 years at an annual interest rate of 15.65% with monthly capitalization.Calculate:a) The compound amountb) The interest accrued during that time
- Question 3 You have been appointed as a financial consultant by the directors of Cochin Holdings. They require you to calculate the cost of capital of the company. The following information is available on the financing of the company: · R10 000 000, financial lease due in 5 years and the current yield-to-maturity is 10%. Prepare a loan amortization schedule Hint: the annuity factor is 3.79088. An investment was made two years and three months ago at 7% simple interest. The investor has just received the principal amount of the investment along with the P 30,000.00 interest. What is the principal amount of the investment?A3) Finance A property can be purchased in cash or through an equivalent plan, over 20 years, consisting of equal monthly payments (before monetary correction), at the effective rate of 8.60% per year. Monetary correction is made monthly, using the reference rate (RT). Throughout this period, the monthly average RT was 0.60%. Knowing that the twentieth installment was $2170 (after monetary correction), obtain the cash value of the property.