ABC Company invested in a 4 year project. The expected rate of return is 40%. Additional information on the project is as follows: Year Cash Inflow PV of 1 @ 10% 1 40,000 0.909 2 44,000 0.826 3 48,000 0.751 4 52,000 0.683 Assuming a positive NPV of 10,00, determine the amount of original investment

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A: Present value means the actual amount is adjusted with the interest rate so as to get the present…

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A: 1.

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A: The sum over time of total cash received (inflow) from sales or loans less the total amount of money…

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A: The project NPV is calculated as present value of cash inflows less initial cost

Q: Suppose martin corp is considering a project that has an initial cost of $3,285,000 and the…

A: Given: Year Cash flow 0 -$3,285,000 1 $1,357,000 2 $1,568,000 3 $1,224,000

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A: NPV is net present value. It is the sum of present value of all future cash flows of a project.

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A:

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A: Given:

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A: NPV can be calculated by following function in excel =NPV(rate,value1,[value2],…) + Initial…

Q: lue Llama Mining Company is analyzing a project that requires an initial investment of $3,225,000.…

A: MIRR is modified rate of  internal rate of return which assumes that cash flow are reinvested at the…

Q: XYZ is considering a 3-yr project. The initial outlay is -$120,000, annual cash flow is $50,000 and…

A: The NPV can be calculated with the help of present value of all cash flows.

Q: Howell Petroleum, Inc., is trying to evaluate a generation project with the following cash flows:…

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Q: NUBD Co. is planning to invest P40,000 in a three-year project. NUBD's expected rate of return is…

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Q: M& B is considering investing in Project X which requires an initial investment of P15,000. The…

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Q: NUBD Co. is planning to invest P40,000 in a three-year project. NUBD’s expected rate of return is…

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Q: Chooanne D' Sexy invested in a four-year project and expect a rate of return of 10%. Information…

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Q: A project which requires an investment of OMR 25,000, duration of the project is 2 years, average…

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Q: Sierra Company is considering a long-term investment project called ZIP. ZIP will require an…

A: Solution:- We know, Internal Rate of Return (IRR) is the rate of return the project is yielding ie.…

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Q: A project has an initial cost of $264,000 and is expected to generate a single cash inflow of…

A: Internal Rate of Return (IRR) is that discounting rate at which Net Present Value of the project is…

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.