A new machine is expected to produce the following after-tax cash inflows over a period of 5 years:   After-tax cash inflows Year Per Year Cumulative 1 16,000 16,000 2 12,000 28,000 3 20,000 48,000 4 8,000 56,000 5 6,000 62,000 1.If the machine will cost P40,000, its payback period is ? 2.

Q: Your company is planning to purchase a new log splitter for its lawn and garden business. The new…

A: working notes: Payback period = $204,000 / 30,000 = 6.8 Years 125,080-70,000 =55,080 Accounting rate…

Q: What will be the equivalent uniform annual amount that will be deposited in a bank for 15 years that…

A: Time Period 15 Initial Cost  P20,00,000.00 Additional Cost at the end evry 5th year…

Q: Quantum Corp. is considering purchasing a new milling machine with a useful life of 6 years. The…

A: Payback period is the number of years the project takes to recover its initial investment. formula:…

Q: purchase of a new copy machine with an initial investment cost of $150,000 and the center expects an…

A: The payback period is the amount of time it takes to recoup the cost of your investment. In layman's…

Q: Dhofar Art Gallery is adding to its existing buildings at a cost of 250000 OMR . The gallery expects…

A:

Q: A new machine will cost $750,000. The cash flows generated from this new machine are as follows:…

A: payback period = years before full period + (unrecovered cost at the start of the year /  cashflow…

Q: Josh purchased a new machine for his business. Josh expects to produce 80 products at P 100,000.00…

A: Cash flow is the flow of cash in entity. There can be inflow or outflow of cash depending upon the…

Q: Oredo is installing new equipment at a cost of 240000 OMR. Expected cash flows from this project…

A: as cash flows are uneven, we will using be using the following formula Discounted payback period =…

Q: A construction management company is examining its cash flow requirements for the next few years.…

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

Q: Blossom Corp. management is planning to convert an existing warehouse into a new plant that will…

A: The payback period is the amount of time it takes to recover the initial cash outflow. The NPV is…

Q: $25,500 today will generate cash flows of $8,800 per year for seven years. What is the project's…

A: Payback period is the no. of years required to recover the initial amount invested.

Q: The LMN Corporation is considering an investment that will cost $80,000 and have a useful life of 4…

A: Payback periods is the time period required by a project to pay back the amount invested in it by…

Q: Given a project with cash outlay today of $100,000. The project is expected to generate cash flows…

A: IRR is the rate at which NPV of the project is zero

Q: JPGR Inc is considering a project with a $2,000,000 initial investment, that is expected to create…

A: Solution:- Internal Rate of Return (IRR) means the rate of return that a project will yield per…

Q: A company can purchase a piece of equipment for $4,230. The equipment has a three-year life and…

A: Initial cost = $4,230 Annual cash inflow year 1 = $1,350 Annual cash inflow year 2 = $1,350 Annual…

Q: If a copy center is considering the purchase of a new copy machine with an initial investment cost…

A: Payback period is a amount of time it takes to recover the investment. In other words it is a time…

Q: at t = 0 of $47,000, its expected cash inflows are $11,000 per year for 8 years, and its WACC is…

A: *Answer: . Given Information: Initial Outlay is $47,000 Cash inflows are $11,000 No. of years is 8…

Q: What is the IRR of the following project?   Invest $1000 in a new machine today that will generate…

A: The term IRR stands for internal rate of return, and it is the rate at which the net present value…

Q: ABC Company estimated that it can generate $42,000 per year in additional cash inflows for the next…

A: The Present Value of additional cash flows: The Present Value of additional cash flows is computed…

Q: A printing press machine has a cash equivalent of P250,000. For the first three years, it will…

A: Given Investment = P 250,000 Profit each year = P20,000 MARR = 7% EARR =15%

Q: A machine costing $58,880 is expected to generate net cash flows of $8,000 for each of the next 10…

A: A discount rate at which the net present worth of the investment equals to zero is term as IRR…

Q: A new building project costs $40,000 and is expected to have positive cash inflows of $8,000 a year…

A: Formulas:

Q: 0 today will generate cash flows of $8,000 per year for seven years. What is the project's payback…

A: Payback period is the no. of years required to recover the initial amount invested.

Q: An investment project has annual cash inflows of $2800, $3700, $ 5100, and $4300, for the next 4…

A: Discount Rate = 9%   Cash Flows:  Year  Cash Flow 0 -5,200 1 2,800 2 3,700 3 5,100 4…

Q: Your company is planning to purchase a new log splitter for its lawn and garden business. The new…

A: = Initial InvestmentAnnual cash flows=$312,000$40,000 = 7.8 Years

Q: The payback period of a project that costs $1,000 initially and promises after-tax cash inflows of…

A: Here, Cash Inflow is $3000 each year Initial Investment is $1,000

Q: A company is considering the purchase of equipment for $270,000. Projected annual cash inflow from…

A: Payback period: It can be defined as the time that is usually taken by an investment before it…

Q: Your company is planning to purchase a new log splitter for its lawn and garden business. The new…

A:

Q: Dhofar Art Gallery is adding to its existing buildings at a cost of 200000 OMR. The gallery expects…

A: Year Cash Flow  Discount factor @10% Discounted value 1 20,000 0.90909 18,181.82 2 70,000…

Q: Primus Corp. management is planning to convert an existing warehouse into a new plant that will…

A: The formula to compute payback period as follows:

Q: Tiger Trucking Company is considering a project that will produce cash inflows of $18,000 at the end…

A: Given Information: Cash inflows at the end of Year 1 - $18,000 Cash inflows at the end of Year 2 -…

Q: Emerald Enterprises is developing a new product at the cost of $ 50,000. The new product is expected…

A: The term "payback period" refers to the number of years needed to recoup the initial monetary…

Q: A printing press machine has a cash equivalent of P250,000. For the first three years, it will…

A: Initial cost (C) = P 250000 Profit in year 1 (A1) = P 20000 A2 = P 20000 A3 = P 20000 A4 = P 35000…

Q: Cecil company is considering the of a new machine. The machine cost $227,500 and will generate a…

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

Q: A company is considering the purchase of a new piece of equipment for P900,000. Predicted annual…

A: Cost of equipment = P 900000 Year Cash inflow 1 360000 2 300000 3 180000 4 150000 5…

Q: If a copy center is considering the purchase of a new copy machine with an initial investment cost…

A: Payback period = Initial cost / annual cashflow

Q: A construction management company is examining its cash flow requirements for the next 7 years. The…

A: Expected Spendings: Year Amount 1st  $6000 3rd  $9000 6-10 $10,000 Rate of return is 12%…

Q: Compute the present value, P, for the following cash flows. You supervise an aging production line…

A: Net Present Value is the difference between the present value of cash inflows and cash outflows.

Q: Suppose Kyler Valley is deciding whether to purchase new accounting software. The payback for the…

A: Cash inflow is the flow of cash inwards towards the business. Given in the question: Software cost =…

Q: Bill Williams has the opportunity to invest in project A that costs $6,900 today and promises to pay…

A: Initial cost of both projects = $6900 We need to calculate the payback period of both projects.

Q: Robinson Hardware is adding a new product line that will require an investment of $1,454,000.…

A: Payback period refers to the time period that is required to recover the initial cost. With the help…

Q: Dhofar water is installing new equipment at a cost of 140000 OMR. Expected cash flows from this…

A: Discount payback period: Discounted payback period is a method used in capital budgeting to…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.