An entrepreneur would like to buy a piece of equipment for his business. The equipment cost $50,000 and will increase cash flow by $20,000 each year for 5 years. What is his IRR?
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An entrepreneur would like to buy a piece of equipment for his business. The equipment cost $50,000 and will increase cash flow by $20,000 each year for 5 years. What is his IRR?
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- you are planning to start a business with an initial capital of P100,000. you decided to put up a fund with deposits made at the end of each month. if you want to gain the initial capital after 4 years, how much monthly deposit must be made? what should be the interest rate in order to achieve the possible amount needed? how are you going to invest your money that in short period of time so that you can start your business smoothly?Loni buys a machine for her business. The machine costs $280,000. Loni estimates that the machine can produce a $64,000 cash inflow per year for the next 9 years. Loni's cost of capital is 7 percent. What is the approximate present value of the cash flow benefits for Loni?You wish to start a business and will need a total of $50,000 to get started. You have $20,000 currently saved and would like to start the business in 5 years times. You believe you can earn 12% on invested funds. How much do you need to add to your investment account at the end of every year in order to achieve your goal?
- ) An investor buys a house for £130,000. 5 months later, the investor spends £8,000 to renovate the house. One year after buying the house, the investor sells it for £175,000. If the interest rate is 9% p.a, what is the net present value of this cashflow?Mark Stevens is considering opening a hobby and craft store. He would invest $50,000 to purchase equipment and furnishings and another $100,000 for inventories and other working capital needs. Rent on the building used by the business will be $25,000 per year. In addition to building rent, other annual cash outflows for operating costs will amount to $44,000. Mark estimates that the annual cash inflow from the business will amount to $100,000. Mark plans to operate the business for only six years. He estimates that the equipment and furnishings could be sold at that time for about 10% of its original cost. Mark's discount rate is 16%. All cash flows, except for the initial investment, would occur at the ends of the years. Required: Compute the net present value of this investment.Soo Ling wants to start a business that she believes can produce cash flows of RM5,600, RM48,200, and RM125,000 at the end of each of the next three years, respectively. At the end of three years, she thinks she can sell the business for RM250,000. At a discount rate of 16 percent, what is her business worth today? Select one: A. RM314,011.33 B. RM297,077.17 C. RM325,837.81 D. RM280,894.67
