A factory costs $300,000. You forecast that it will product cash inflows of $105,000 in year 1, $165,000 in year 2 and $270,000 in year 3. The discount rat is 11%. what is the value of factory? Is the factory a good investment/

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A: To calculate the selling price after 1 year we will use the time value of money formula as follows:…

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Q: A factory costs $460,000. You forecast that it will produce cash inflows of $150,000 in year 1,…

A: Given: Initial cost = $460,000 Year 1 cash inflows = $150,000 Year 2 cash inflows = $210,000 Year 3…

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A: Optimum cash balance is that optimum stage where the total cost of cash is minimum.

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A: No, the company should not proceed with a new product line. Here is the working is shown below:…

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A: Given: To calculate the optimum, average cash balance, conversion number and total cost is given as,

Q: A factory costs $28000. You forecast that it will produce cash inflows of $80000 in year 1, $140000…

A: The provided information are: Discount rate (r) = 12% = 0.12 Cash outflow = $28000

Q: Should the company make this investment?

A:

Q: You are the project manager for kpl project and since you don’t sleep much, you get a lot of roject…

A: Note : As per our guidelines, we can only answer 3 subparts at once. Please post other parts…

Q: Project K costs $60,000, its expected cash inflows are $15,000 per year for 8 years, and its WACC is…

A: a) Computation of NPV:

Q: A factory costs $420,000. You forecast that it will produce cash inflows of $130,000 in year 1,…

A: Value of factory = Present Value of cash inflow (PVCI) - Present Value of cash outflow (PVCO)

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A: The number of days needed to recover the cost of your investment is known as the repayment period.…

Q: A factory costs $320,000. You forecast that it will produce cash inflows if $100,000 in a year,…

A: The value of factory can be determined with the help of below expression:

Q: A factory costs $430,000. You forecast that it will produce cash inflows of $135,000 in year 1,…

A: Net present value method: Net present value method is the method which is used to compare the…

Q: A factory costs $330,000. You forecast that it will produce cash inflows of $105,000 in year 1,…

A: The present value function uses a discount factor for converting a series of future cash flows to…

Q: What is the payback period if a copy shop is thinking about buying a new copier with an initial…

A: Introduction: The payback period is the time required to recoup your capital investment. In layman's…

Q: The company is considering investing $810,000 in equipment. They expect the equipment to save…

A: Formulas: Payback period = cash out flows / Cash inflows

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A: Initial purchase price of a new stamp is $6,000 Shipping and installation cost us $5,000 Training…

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A: Machine cost (C) = $227500 Cash inflow (A) = $35000

Q: A factory costs $400,000. You forecast that it will produce cash inflows of $115,000 in year 1.…

A: The value of the factory is the sum of present value of future cashflows.

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A: Calculation of Payback Period                   Year Annual Cash Flow Cumulative Cash Flow   1…

Q: Which material will you recommend?

A: Cost is defined as the amount which is incurred by the entity over transforming the products from…

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A: The computation is done below:

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A: Total cash flow for the first two years = Cash inflow per quarter * no. of quarter

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A: Given: Year Particulars Amount 0 Initial investment -$250,000 1 Cash inflows $125,000 2…

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A: The present value function or concept can be used to determine the present value of a future sum or…

Q: which investments should the firm make

A: NPV is an abbreviation for Net Present Value. For example, NPV helps us to know the present value of…

Q: The following table presents sales forecasts for Golden Gelt Giftware. The unit price is $40. The…

A: Net present value - It is the sum of the present value of all future cash inflows  minus the sum of…

Q: Safe Driving School is considering purchasing new autos costing $235,000. The company's management…

A: YEAR  CASH FLOW CUMULATIVE CASH FLOW  0 ($235,000) ($235,000) 1 $80,000 ($155,000) 2 $85,000…

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A: Incremental Rate of Return (IRR) is a capital budgeting method which shows the return generated…

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A: The net amount of cash and cash equivalents transported into and out of a corporation is referred to…

Q: An investment with total costs of $10,000 will generate total revenues of $11,000 for one year.…

A: An investment with total costs of $10,000 will generate total revenues of $11,000 for one year.…

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A: Rate of Return for an investment is the yield rate. Every investment decision is based on the return…

Q: A factory costs $290,000. You forecast that it will produce cash inflows of $85,000 in year 1,…

A: For project acceptance decision we will calculate the NPV and IRR of the project

Q: the return will have to be:

A: Rate of Return: Rate of return is the rate at which the investment will pay after particular period…

Q: A factory cost $330,000. You forecast that it will produce cash inflows of $105,000 in year 1,…

A: All financials are in $.Let PV(I) = Present value of all the cash inflows and Ci be the cash inflow…

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