Computer Consultants Inc. is considering a project that has the following cash flow and WACC data. What is the project's MIRR? WACC: 10.00% Year 0 1 2 3 Cash flows -$1,000 $450 $450 $450 A) 9.32% B) 10.35% C) 11.50% D) 12.78%
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- What is net future value for a project with MARR 10% and cash flows of: year 0: -200; year 1: $50; Year 2: $50; year 3: $50; year 4: -$100; year 5: $400; year 6: $400.ou've estimated the following cash flows (in $) for a project: Year Cash flow 0 -5,400 1 1,125 2 1,848 3 2,540 The required return for the project is the company's cost of capital of 8%. What is the MIRR for the project (using the reinvestment approach)?A man plans to invest for a quarry operation which he will gain a net income of P 800, 000.00every end of the year for 5 years then the operation will be terminated. At what rate (%) does he receive interest on his P 5, 000, 000.00 investments at the end of each year if he accrues a replacement fund to recover his capital by annual investments at 5%?
- a young engineer wishes to become a millionaire by the time he is 60 years old. He belives that by careful investment he can obtain a 15% rate of return. He plans to add a uniform sume of money to his investment program each year, beginning on his 20th birthday and continuing through his 59th birthday. How much money must the enigneer set aside in this project each year? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.A bond with a face value of $1000 can be purchased for $800. The bond matures in 5 years and the dividend rate is 6%/yr. with dividends paid semi-annually. What is the effective interest rate on the bond purchase? Only typed AnswerCompany B has a P5M loan for a new security system it just bought. The annual payment is P444,000 and the interest rate is 8% per year for 30 years. Your company decides that it can afford to pay P500,000 per year. After how many payments (years) will the loan be paid off? a. 18.78 yrs b. 15.67 yrs c. 20.44 yrs d. 25.76 yrs
- How do you calculate the PVIFA for the equation: EAC = NPV / Annutiy factor How would you use the financial calculator to solve for EAC and PVIFA? You are evaluating two different silicon wafer milling machines. The Techron I costs $270,000, has a three-year life, and has pre-tax operating costs of $69,000 per year. The Techron II costs $475,000, has a five-year life, and has pre-tax operating costs of $36,000 per year. Both milling machines are in Class 8 (CCA rate of 20 percent per year). Assume a salvage value of $45,000. If your tax rate is 35 percent and your discount rate is 10 percent, compute the EAC for both machines. Which do you prefer? Why?Methods of Economy Studies An investment of P 250,000 can be made in a project that will produce a uniform annual revenue of P 192,800 for 5 years and then have a salvage value of 10% of the first cost. Operation and maintenance will be P 72,000 per year. Taxes and insurance will be 4% of the first cost per year. The company expects capital to earn 20% before income taxes. Show whether or not the investment is justified economically using1. Present Worth (PW) method2. Future Worth (FW) method3. Annual Worth (AW) method4. Rate of Return (ROR) method5. Payback (Payout) methodConsider a project that will bring in upfront cash inflows for the first two yearsbut require paying some money to close the project in the third year. A0 A1 A2 $6500 $4500 $13000 This is a simple borrowing project. Determine the borrowing rate of return
- A company invests $6,250 at the beginning ofa seven-year project. At the end of every year forthe first five years, the project generates $1,550. Atthe end of the sixth year, the project generates nomoney. At the end of the seventh year, the project isterminated. How much must the project generate atthe end of the seventh year to realize 14% return onthe initial investment?A business needs an immediate capital of 145,000. If the annual operating maintenance cost of the business is 90,000, how much is capitalized cost of the business? Assume 15% annual interest.Lim Bon Fing Y Hermanos Inc has offered for sale its two-storey building in thecommercial district of Cebu City. The building contains two stores on the ground floor anda number of offices on the second floor.A prospective buyer estimates that if he buys this property, he will hold it for about 10years. He estimates that the average receipts from the rental during this period to beP350,000.00 and the average expenses for all purpose in connection with its ownershipand operation (maintenance and repairs, janitorial services, insurance, etc.) to beP135,000.00. He believes that the property can be sold for a net of P2,000,000 at the endof the 10th year. If the rate of return on this type of investment is 7%, determine thecash price of this property for the buyer to recover his investment with a 7% return beforeincome taxes.ANSWER: P2,526,768.61