A project has a net present worth of −$20,000 as of January 1, 2022. If a 4% interest rate is used, what is the project NPW as of December 31, 2017?
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A project has a net present worth of −$20,000 as of January 1, 2022. If a 4% interest rate is used, what is the project NPW as of December 31, 2017?
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- If 90,000 is invested in a fund on December 31, 2019, and 5 equal annual withdrawals of 23,138.32 are made starting on December 31, 2020, that will deplete the fund, what is the interest rate being earned if interest is compounded annually?An engineering project has an investment amount of $129011 with an annual net profit of $52364 for 5 years. If the interest rate and average inflation rate are 15% and 6%, respectively, calculate the present worth of the entire period.Based on the information below, calculate the adjusted present value (APV), given that the project lifespan is 1 year and is being financed by 30% debt: Investment at t=0 € 33,000 Cashflow after yr1 € 39,600 Cost of capital (COC) 53% Cost of debt 43% Tax 33% a) The adjusted present value (APV) is: €-4325.31 b) The adjusted present value (APV) is: €-5307.69 c) The adjusted present value (APV) is: €-7117.65 d) The adjusted present value (APV) is: €-6135.26
- In each situation described below, identify the initial payment, the term interest rate, andthe number of compounding periods. An investment of $10000 made in January 2018 at an APR of 5% compounded monthly,and another investment of $20000 made in January 2025 at an APR of 3% compoundedweekly. What is the value of the account in January 2030?JPGR Inc is considering a project with a $2,000,000 initial investment, that is expected to create incremental after-tax cash flows of $450,000 per year for 7 years, starting 1 year from today. Given this information, what is the IRR of the project, stated as an APR compounded annually? A) 12.84% B) 13.57% C) 14.38% D) 15.43%The definitive study for a sulphuric acid plant that is to be commissioned at end-December 2024 has a capital commitment of $185 million (in Dec 2024 dollars). That plant is designed to produce 30,000 tonnes per annum of H2SO4. I am pricing a H2SO4 plant to produce 25,000 tonnes per annum in my Dec 2022 study. CPI forecasts suggest that the inflation rate over the next two years will be 2.1% per annum. Using the 6/tenths rule, calculate the approximate capital cost of the 25,000tpa plant in Dec 2022 money terms.
- Consider a project with an initial investment (today, t = 0) of $200,975. This project will generate cash flows of $49,500 per year for the next 8 years, at which time (end of Year 8) the company will pay $50,000 to another for clean-up and disposal. What is the Profitability Index (PI) of the project if shareholders demand a 16.295% return? Answer with a number rounded to three decimal places, e.g., 4.0877% should be entered as 4.088.Suppose that the date is 1 January 2022, and you are considering making an investment in General Electric (NYSE: GE). You are given the following information and assumptions to assist you with your valuation analysis: FY2022 revenue (i.e., for the 12-month period from 1 January 2022 to 31 December 2022) is forecast to be $80 billion, compared to actual FY2021 revenue of $75 billion. EBIT, depreciation & amortization (D&A) and capital expenditure dedicated solely for new investments/projects (i.e., growth capital expenditure) is expected to remain fixed (as a percentage of total revenues) at 15%, 5% and 3% respectively. The level of operating working capital needed for GE’s ordinary business operations historically as well as in the future is equal to 1% of total revenues. GE currently has $75 billion in debt outstanding, $40 billion in cash on hand and 9 billion shares outstanding. Assume that GE faces an effective corporate tax rate of 25%. Assume that GE’s long-term…Assume that in 2020, a Liberty Seated half dollar issued in 1890 was sold for $197,000. What was the rate of return on this investment?
- JenBritt Incorporated had a free cash flow (FCF) of $80 million in 2019. The firm projects FCF of $200 million in 2020 and $500 million in 2021. FCF is expected to grow at a con- stant rate of 4% in 2022 and thereafter. The weighted average cost of capital is 9%. What is the current (i.e., beginning of 2020) value of operations?JenBritt Incorporated projects FCF of $285 million in 2020 and $520 million in 2021. FCF is expected to grow at a constant rate of 4% in 2022 and thereafter. The weighted average cost of capital is 9%. What is the current (i.e., beginning of 2020) value of operations? Do not round intermediate calculations. Enter your answer in millions WITHOUT comma or separator. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answer to two decimal places.So, is the book value at the end of 2019 90,000,000?