2. An investment has the following cash flows - what is the payback ? Question 2 -90,000 45,000 10,000 30,000 30,000 30,000 3 years 2 months 2 years 2 months 2 years 1 month O 2 years 8 months
Q: A sum of $10,000 now (time 0) is invested into a project. The investor expects to earn the…
A: Present Value = -10,000 Earnings Rate = 4% Present Value = [Cash Flow 1 / (1+earning rate%)^1] +…
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A: Year Cash Flows 0 -90,000 1 45,000 2 10,000 3 30,000 4 30,000
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A: IRR is internal rate of return and MIRR is modified internal rate of return. IRR is the discount…
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A: Capitalized Cost=-Initial Cost-Annual Payment×(P/A, r%, n years)-Terminal Payment×(P/F, r%, n years)
Q: An investor invested $50,000 at the beginning. He received the following cash flows from the…
A: IRR stands for internal rate of return. It is the rate at which net present value of project is 0.…
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…
Q: 5-7 PRESENT AND FUTURE VALUES OF A CASH FLOW STREAM. An investment will pay $150 at the end of each…
A: Here, Interest rate = 11% To Find: Present Value =? Future Value =?
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A: The Present Value is the current value of a future amount i.e., it is the amount to be invested…
Q: 7. A company that makes clutch disks had the cash flows shown below for one department with a MARR…
A: Internal rate of return is the rate at which net present value of cash flows is 0. Modified IRR is…
Q: Example 1: Find the Net Present Value assuming cost of capital is 10 %? Year Cash Flow Rs.…
A: The given problem can be solved using NPV function in excel.
Q: 3. 2. Year Cash Inflows $400,000 300,000 200,000 4 100,000 5. 200,000 What is the NPV of the…
A: Net Present Value is the difference between the current value of cash inflow and cash outflow for a…
Q: 1- Calculate the rate of return to be obtained for the investment to be made in the 1st year…
A: Capital budgeting is the process by which a corporation examines potential large projects or…
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A: Initial investment (I) = $1000 Cash flow in year 1 (CF1) = $6000 Cash flow in year 2 (CF2) = -…
Q: (b) What do you mean by payback period? What are their significano:s and drawbacks? Find the payback…
A: Payback period is a method to appraise capital investment projects. It is the time required for a…
Q: b) Aida Kamilia won RM1,000,000 in a contest, to be paid in twenty RM50,000 payments at yearly…
A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…
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A: 3. Option A, Product A Year 0 1 2 3 4 Cash Flow - $450000 $190000 $190000 $60000 $20000…
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A: In investment management, the future value concept helps in the determination of the investments at…
Q: what is the simple payback period of following investment End of year Cash flow $ -26000 1 -3000 2-5…
A: The capital budgeting is a technique that helps to analyze the profitability of the project and…
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: 1- Calculate the rate of return to be obtained for the investment to be made in the 1st year…
A: In manual calculation, we have to use hit and trial method. In this method, we start by arbitrarily…
Q: (Ignore income taxes in this problem.) Your Company is considering an investment that has the…
A: Payback period: Payback period is the length of time in which an investment reaches its break-even…
Q: A firm has the following investing alternative: Cash Inflows Year…
A: Since the question has multiple sub parts, I will address the first five sub parts. Please post the…
Q: 1. An investment has the following cash flows - what is the payback ? Question 1 Year 0 -120,000…
A: Payback period means the time with in which we will get our investment amount back.
Q: 1. An opportunity arises for company ABC which requires an initial investment of $800,000 now. The…
A: Discounted Payback Period = Years before full recovery + (unrecovered cost at the start of the year/…
Q: Tech Techies Company has a project available with the following cash flows : Year Cash Flow 0…
A: Year Cash flow 0 -16800 1 6900 2 8200 3 3500 4 3100
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A: Present worth is the discounted value of future cash flows. It is computed as the sum of Future cash…
Q: QUESTION-1 Consider the following cash flow and calculate the rate of return. MARR is 5%, compounded…
A: Formula to calculate rate of return The internal rate of return of a project is when the NPV becomes…
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A: Financial accounting: Financial accounting is the process of recording, summarizing, and reporting…
Q: Exercise 2 Masikap has an investment opportunity costing P180,000 that is expected to yield the…
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Q: Problem No. 3 The cash flows for an investment are shown below: Year 1 3 4 Cash flow $1400 1500 1600…
A: The equivalent annual benefit (EUAB) is the annual benefit amount of a project.
Q: Problem #2: Based on the following cash flow diagram, compute the equivalent value of these cash…
A: The equivalent value at year 1 is the present value of all the cash flows at year 1. Using the…
Q: 2.- A project has a total cost of $8,700. The cash flows are $1,000 at first year, $2,000 in the…
A: Internal rate of return is an discount rate at which the Net present value of project will becomes…
Q: An investor invested $50,000 at the beginning. He received the following cash flows from the…
A: IRR is the annual growth rate a project will generate until the life of the project. It is…
Q: QUESTION-1 Consider the following cash flow and calculate the rate of return. MARR is 5%, compounded…
A: Year Cash flows present value factor @ 12% Present value of cash flow @ 12% Present value…
Q: what is the simple payback period of following investment End of year Cash flow $ -26000 -3000 2-5…
A: Simple payback period is that period which shows the time in which initial investment can be…
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- AFN EQUATION Refer to problem 17-1. What additional funds would be needed if the company's year-end 2018 assets had been 4 million? Assume that all other numbers are the same. Why is this AFN different from the one you found in problem 17-1? Is the company's "capital intensity" the same or different? Explain.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!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 return
- Ch 5. The following project has cash flows as follows: Year Project A 0 -$705,000 1 $225,000 2 $421,500 3 $275,000 What is the IRR? Round to one place past the decimal point and format as "XX.X"5.1 Calculate the Payback Period (expressed in years, months and days). 5.2 Calculate the Accounting Rate of Return on average investment (expressed to two decimal places). 5.3 Identify TWO (2) reasons why the company should not use the accounting rate of return to evaluate capital investments. 5.4 Calculate the Net Present Value. 5.5 Calculate the Internal Rate of Return (expressed to two decimal places) if the net cash flows are R320 000 per year for five years. Your answer must include two net present value calculations (using consecutive rates/percentages) and interpolation. INFORMATION Purchase price R1 000 000 Expected useful life 5 years Scrap value 0 Minimum required rate of return 15% Expected net cash inflows: Year 1 R250 000 Year 2 R260 000 Year 3 R300 000 Year 4 R400 000 Year 5 R380 000 Expected net profit: Year 1 R50 000 Year 2 R60 000 Year 3 R100 000 Year 4 R200 000 Year 5 R180 000=NPV(B26,I27:R27)-B24 B26 = discount rate of 9% B24 = initial investment of $30m I27:R27 = yearly cash flows: what are the cash flows for each year?
- MC Qu. 9 What amount of cash would result at the end ...What amount of cash would result at the end of one year, if $16,000 is invested today and the rate of return is 8%? (Do not round your PV factors.)a-$16,000b-$17,120c-$17,280d-$14,720ReferencesMultiple ChoiceMC Qu. 9 What amount of cash would result at the end ... Please don't provide answer in image format thank youThe project's IRR? Year 0 1 2 3 4 5 Cash flows -$8,750 $2,000 $2,025 $2,050 $2,075 $2,100(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…
- Problem 2 ABM Enterprise would like to evaluate/analyze an investment proposal.Given the following:Investment amount - 450,000 (2022)Dividends / Revenue stream - 100,000 for the first year and an interval of 5,000 for thesucceeding yearsDiscount 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.Asset End of year Amount Appropriate Required Return C 1 - 16% 2 - 3 - 4 - 5 $35,000 Cash Flow by using cell references to the given data, calculate the value of asset C. Note: The result of your calculation is expected as a positive answer.Initial Outlay Cash Flow in Period 1 2 3 4 $4,000,000 $1,546,170 $1,546,170 $1,546,170 $1,546,170 The Internal Rate of Return (IRR) =? A) 10%. B) 18%. C) 20%. D) 24%.
