Computer A: Initial outlay=50,000,  cash inflow=7,000 for 6 years Computer B: Initial outlay=35,000 cash inflow=5,500 for year 1, 12,000 for year 2, 16,000 for year 3, 23,000 for year 4 Computer C: Initial outlay=60,000, cash inflow=18,000 for 5 years   a) calculate the NPV for each computer over its life. b) find the equivalent annual cost for each computer over its life.

Q: A four-year life project has an initial capital expenditure of $3,000 and annual operating costs…

A: Initial Capital expenditure(CAPEX) is $3000 Operating cost starting from end of 1st year is $2000…

Q: A sum of $10,000 now (time 0) is invested into a project. The investor expects to earn the…

A: Present Value = -10,000 Earnings Rate = 4% Present Value = [Cash Flow 1 / (1+earning rate%)^1] +…

Q: Shirt Corporation is considering purchasing equipment that costs $60,000 and is expected to provide…

A: The Payback period is a period in which project return back the investment amount which is invested…

Q: 1.An initial investment of Rs.8,320 on machinery is expected to generate net cash flows of Rs.3,411…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: raw Cash-Flow-Diagram ! The cost of utilities, taxes and maintenance on a home is $3,000 per year.…

A: The present value would be equivalent amount today required which is equivalent to the future cash…

Q: Cash Payback Period A project has estimated annual net cash flows of $22,500. It is estimated to…

A: CASH PAYBACK PERIOD : IT MEANS THAT THE EXPECTED PERIOD OF TIME BETWEEN THE DATE OF INVESTMENT , AND…

Q: What is the approximate IRR for a project that costs $100,000 and provides cash inflows of $30,000…

A: Given:

Q: You are hired as consultant to Onesie Company to assist the company in evaluating two projects.…

A: WACC = 12%     Project X   Year  Cash Flows Present Value of cash flow = Cash Flow /…

Q: cost of a project is $50,000 and it generates cash inflows of $20,000, over four years. Calculate…

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

Q: A company is considering two projects.   Project I Project II Initial investment $200,000 $200,000…

A: The payback period can be calculated as the number of years it will take for a project to recover…

Q: You are offered an asset that costs $150,000 and has cash flows of $1,350 at the end of every month…

A: IRR function = IRR(cashflows) NPV function = NPV(rate, cashflows) + initial cashflow Rate = 9%/12…

Q: A project has estimated annual net cash flows of $59,700. It is estimated to cost $370,140.…

A: The time taken by an entity to recover the initial cost of an investment is known as payback period…

Q: Consider a machine that initially cost $6,000 and has these estimated annual expenses and market…

A: Data Given: Initial cost of Machine= $6000 MARR =9% Required:: Economic service life = ?

Q: What is the breakeven point of a project with the following cash flows?   Answers: 3…

A: Therefore, the total cash outflow is $26,000.

Q: Projects A, B, and C each have an expected life of five years. Cash flows are as follows: Project t0…

A: Payback period is a capital budgeting method.  payback period is the time in which the initial…

Q: For the cash flows shown, determine the incremental cash flow between machines B and A (a) in year…

A: Make or buy decision involves financial analysis of production option in comparison with the…

Q: shows a cash flow diagram for an engineering project. The project has an initial investment of RM…

A: Present value of all cash flow must be equivalent to initial cost to achieve the break even point in…

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: (a) draw the cash flow diagram; (b) present clean and clear manual solutions to the problem; (c)…

A: Future Worth is the value of cash flows at the future point of time. Net Future Worth is the Future…

Q: 2. Calculate the IRR for the following project with the following cash flows: An initial outflow of…

A: Capital budgeting is the process by which a corporation examines potential large projects or…

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: The value of an investment comes from its cash flows. Let's say you are intent on receiving $4000…

A: APR (Annual Percentage Rate) is defined as an annual rate of an interest that have been charged to…

Q: 1. An initial investment of Rs.8,320 on machinery is expected to generate net cash flows of Rs.3,411…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: C. Suppose that the initial cost of a certain operation is $25000 at the beginning of the first…

A: Cash flow (CF) diagram refers to a visual represent of the cash flows (income and expenses) of a…

Q: Draw a 5-year cash flow diagram representing the following cash flows to build springs: (Chapter 2)…

A: Initial investment in plant and equipment $50K  Answer:

Q: A project has estimated annual net cash flows of $30,000. It is estimated to cost $192,000.…

A: Cash Payback period: Cash Payback period is the length of time in which an investment reaches its…

Q: st of a project is $50,000 and it generates cash inflows of $20,000, over four years. Calculate IRR…

A: IRR or Internal rate of return can be computed using IRR function in excel.

Q: Cash Payback Period A project has estimated annual net cash flows of $49,500. It is estimated to…

A: Pay back period means time taken to recover the cost of the investment. The lesser payback period…

Q: Cash Payback Period A project has estimated annual net cash flows of $39,500. It is estimated to…

A: Payback period is the time required to recover the investment.  Cash payback period = Initial…

Q: pose Hungry Whale Electronics is e estment of $2,225,000. The project Year Cash Flow Year 1 $350,000…

A: Note : As per the guidelines only first question will be answered.

Q: Monson Company is considering three investment opportunities with cash flows as described below:

A: Net present value (NPV) is the difference between the present value of cash inflows and the present…

Q: Monson Company is considering three investment opportunities with cash flows as described below:…

A: Project A:  Cash investment now  $15,000     Cash inflow at the end of 5 years  $21,000…

Q: Cash Payback Period A project has estimated annual net cash flows of $37,500. It is estimated to…

A: Payback period is the time required to recover the investment.  Payback period = Initial…

Q: From Part A above, assume that the bank decided to give a loan of $ 59 million to Nivea Corporation…

A: Net present value (NPV) is the difference between the present values of cash inflows and cash…

Q: A sum of $10,000 now (time 0) is invested into a project. The investor expects to earn the…

A: Earnings rate = 4% Present Value 10,000 Present Value = [Cash Flow 1 / (1+interest %)^1]+ [Cash Flow…

Q: A machine costs $25,000; it is expected to generate annual cash revenues of $8,000 and annual cash…

A: Present value is calculated by using the rate of return required by the investor. It is one of the…

Q: ost of a project is $50,000 and it generates cash inflows of $20,000, over four years. Calculate…

A: NPV or Net present value can be computed using NPV function in excel.

Q: Lanham Incorporated recently invested in a project with a 3-year life span. The net present value…

A: The present value is the present worth of the amount that will be paid or received at future.

Q: A cash inflow was experience at P100 for the first 5 years, plus an additional amount of P100 during…

A: Value of money declines with the passage of time. This is known as the time value of money.…

Q: future

A: Thanks for the question. Value engineering is a management related question. Calculating the future…

Q: repare a schedule that shows the applicable cash flows and other relevant items for this decision…

A: Payback Period: It is the period in which the cost of the investment/project is recovered. The…

Q: Determine the number of operating hours such that the present value of cash flows equals the amount…

A: Cash flow: Cash flow is the monetary consideration (return or income) received by the business for…

Q: The engineers at a design firm have been tapped by an amusement park to design a water sports ride.…

A: Present worth is the present value of cash flows that are expected to occur in the future.

Q: The firm plans to use a 12% cost of capital to evaluate each computer. Computer A: Initial…

A: a)Cost of Capital (Present Value Factor) = 12%Calculation of NPV of each computer using excel:

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.