Can you show to do this 3) ABC Inc. is negotiating with the mayor of Aarhus to start a water filtering initiative in an abandonedbuilding. For the proposed initiative, the company has proposed the below cash flows to the Mayor (inDKKS).Assume that the mayor has agreed to subsidize the initiative as it may fit in the long term environmentalpolicy of the city. How and when the subsidy will be paid, depends on which investment criterion is usedby ABC Inc. In a discussion meeting, ABC Inc. has suggested that they would like to have a subsidy asper following alternatives:Year 0Year 1Year 2Year 3Year 4Cash Flow-1,500,000450,000450,000450,000450,000(a) Get an IRR of 15% to the project.(b) Project to provide a 3-year payback.(c) Provide an NPV of DKK 55,000 at a discount rate of 10%.

Answer In this problem, we want to see the minuscule amount pricey possibility for the city town to…

Answered: (a) Get an IRR of 15% to the project.…

(a) Get an IRR of 15% to the project. (b) Project to provide a 3-year payback. (a) D NDV ofEDVK S S 000 diggount noto f100/

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter1: Introduction And Goals Of The Firm

Section: Chapter Questions

Problem 2.5CE: Energy entrepreneur T. Boone Pickens has proposed converting the trucking fleet in the United States...

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Question

Can you show to do this

3) ABC Inc. is negotiating with the mayor of Aarhus to start a water filtering initiative in an abandoned
building. For the proposed initiative, the company has proposed the below cash flows to the Mayor (in
DKKS).
Assume that the mayor has agreed to subsidize the initiative as it may fit in the long term environmental
policy of the city. How and when the subsidy will be paid, depends on which investment criterion is used
by ABC Inc. In a discussion meeting, ABC Inc. has suggested that they would like to have a subsidy as
per following alternatives:
Year 0
Year 1
Year 2
Year 3
Year 4
Cash Flow
-1,500,000
450,000
450,000
450,000
450,000
(a) Get an IRR of 15% to the project.
(b) Project to provide a 3-year payback.
(c) Provide an NPV of DKK 55,000 at a discount rate of 10%.

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