e. 3.9 years. c. 4.4 years. d. 2.3 years. а. 0.2 years. b. 5.0 years.
Q: An independent project has a net investment of $250,000, and generates net cash flows of $90,000 for…
A: Calculation of Net present value of the project: Answer: Net present value is $19,155.09
Q: company is evaluating a proposal for purchase of equipment which will cost $180,000. The cash…
A: Introduction Payback period: It is the method of capital investment evaluation. This method counts…
Q: A structural engineering consulting company is examining its cash flow requirements for the next 6…
A: Spending after 2 years = $ 21,000 Spending after 3 years = $ 24,000 Spending after 5 years = $…
Q: A project has estimated annual net cash flows of $54,000. It is estimated to cost $270,000.…
A: Formula to calculate payback period :Payback period = Inital investment / Annual net cash flows
Q: The equipment generated PHP100 million sales in 2021, its first year. It is expected to grow by 5%.…
A: Sales = PHP100 million Growth Rate = 5% Economic life = 6 Years Cash flows-to-sales ratio = 50%…
Q: A Company is considering the investment on a project with initial investment of OMR 5,000,000. The…
A: The present value of future cash flows is a method of discounting cash that will be received in the…
Q: An anticipated purchase of equipment for $520,000, with a useful life of 8 years and no residual…
A: The payback period is the time period taken by business to cover the initial or original cash…
Q: What is the present worth (t=0) of this series of cash flows (arithmetic series)?
A: Present Worth: It is the present value of the cash flows of an investment or a project. These cash…
Q: 3% compounded annually, what was the equivalent uniform annual cost for the 12-year period? Include…
A: An item of expenditure on a capital asset that brings back the asset to its working position is…
Q: The company recently invested in a project that has an expected annual cash inflow of P700,000 for…
A: The payback period represents the period that a project takes to recoup the initial investment. The…
Q: Sandhill, Inc., is purchasing machinery at a cost of $ 3,544,720. The company's management expects…
A: Payback period is The length of time required for an investment to generate cash flows sufficient…
Q: DARPA is planning to purchase a new machine. The initial investment required for th $60,000. The…
A: Cash flow diagram shows the how cash is coming in and how cash is going out. It shows the movement…
Q: You are considering investing $64,000 in new equipment. You estimate that the net cash flows will be…
A: Investing in new Equipment $ 64,000 Life of Equipment 8 year Salvage Value $…
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 $50,600. It is estimated to cost $288,420.…
A: Calculate the payback period as follows: Payback period = Initial investment / Net cash inflows
Q: You are considering investing RM60000 in new equipment. You estimate that the net cash flows will be…
A: Equivalent annual cost is the cost of a project annually for the time period of its completion. This…
Q: MNO company is evaluating a proposal for purchase of equipment which will cost S180,000. The cash…
A: Initial investment is $180,000 (Purchase cost of equipment) Year Cash inflows…
Q: Gossman Corporation is analyzing a capital expenditure that will involve a cash outlay of P104,904.…
A: Internal Rate of Return is that rate at which Present Value of Cash Inflow is equal to Present value…
Q: A project has estimated annual net cash flows of $69,900. It is estimated to cost $817,830.…
A: Cash payback period = Initial investment / annual net cash flows
Q: RODEO, Inc., is purchasing machinery at a cost of $2,957,720. The company’s management expects the…
A:
Q: Christopher Electronics bought new machinery for $5,045,000 million. This is expected to result in…
A: The payback period is calculated by dividing the amount of the investment by the annual cash flow.
Q: Margaret Company has an initial cost of investment amounting to P225,000 and expects the following…
A: The payback bailout period is the method that represents the period in which the total investment in…
Q: A project has estimated annual net cash flows of $66,600. It is estimated to cost $466,200.…
A: The payback period is the estimated period in which the investment is expected to be returned fully.…
Q: ABC Corporation made a net investment of P500,000 in a vending machine. Over the five years of its…
A: Payback period means the time with in which we will get our investment amount back. It is calculated…
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 project has estimated annual net cash flows of $65,700. It is estimated to cost $762,120.…
A: Cash payback period - Cash payback period = Initial investment/ cash flows per year Cash payback…
Q: ABC Company estimated that it can generate $42,000 per year in additional cash inflows for the next…
A: The Present Value of additional cash flows: The Present Value of additional cash flows is computed…
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: Brans Co. is considering a $270,000 investment, which will provide net returns of $110,000,…
A: Payback period: The payback period is the minimum period of time in which an initial investment of…
Q: It is estimated that a certain piece of equipment can save as $17,000 per year in labour and…
A:
Q: Beyer Company is considering the purchase of an asset for $320,000. It is expected to produce the…
A: Definition: Payback period: Payback period is the expected time period which is required to…
Q: A project has estimated annual net cash flows of $63,800. It is estimated to cost $740,080.…
A: Calculation of Cash payback period is to find the time required to recover the initial investment in…
Q: An equipment which can be purchase for P700,000 is expected to generate a net cash flow of P200,000…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Beyer Company is considering the purchase of an asset for $240,000. It is expected to produce the…
A: calculation of payback period are as follows
Q: A constructed bridge requires no upkeep until the end of 2 years when P60,000 will be needed for…
A:
Q: 1. What is the present value of cash inflows? 2. What is the NVP if the equipment cost 320,000,000?
A: Cash flows to sales ratio = Cash flows / Sales * 100 Calculation of cash inflows of each year:…
Q: Bright paints Ltd. estimates its cash requirement as Rs.2,400,000/- next year. The company faces a…
A: Given that: Annual cash requirement = Rs. 24,00,000 Fixed conversion cost = Rs. 4000 Holding cost…
Q: A project that costs $2,600 to install will provide annual cash flows of $610 for the next 5 years.…
A: The provided information are: Cost of project = $2600 Annual cash flow = $ 610
Q: The cash flow associated with a strip mining operation is expected to be $200,000 in year 1,…
A: Equivalent annual cash flow=$200,000-$20,000(A/G, 12%, 8)= 200,000 - 20,000 (2.9131)= $142,738
Q: A project has estimated annual net cash flows of $24,500. It is estimated to cost $147,000.…
A: Cash payback period represents the estimated time to recover the costs incurred on a project.
Q: Suppose an industrial building can be purchased for $2,500,000 and is expected to yield cash flows…
A: Internal rate of return is the rate at which present value of cash inflows is equal to initial…
Q: Wayne Company is considering a long-term investment project called ZIP. ZIP will require an…
A: CASH PAYBACK PERIOD IS THE AMOUNT OF TIME REQUIRED FOR CASH INFLOW GENERATED BY A PROJECT TO OFFSET…
Q: A company is considering the purchase of a new piece of equipment for P900,000. Predicted annual…
A: Cost of equipment = P 900000 Year Cash inflow 1 360000 2 300000 3 180000 4 150000 5…
Q: MNO company is evaluating a proposal for purchase of equipment which will cost $180,000. The cash…
A: MNO Company's Purchase cost of equipment = $180000 Cash inflows from use of equipment are Year 1 =…
Q: An investment in Machinery will yield annual cash earnings of P 12,000. The investment can be…
A: Annual net income of the investment = annual cash earnings - Annual depreciation where, Annual…
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: It is estimated that a certain piece of equipment can save as $25,000 per year in labour and…
A: A cashflow diagram is pictorial representation of cashflows incurred by the enterprise on its…
Q: MNO company is evaluating a proposal for purchase of equipment which will cost $180,000. The cash…
A: Payback periods means the time taken by the equipment to completes the cost of the it. It is the…
A company is considering the purchase of equipment for $270,000. Projected annual
Step by step
Solved in 3 steps with 2 images
- O n May 11, 1993, a n o t e d u e on January 10, 1994 w a s d i s c o u n t e d at 12.12% s i m p l e d i s c o u n t . F i n d t h e e x a c t s i m p l e i n t e r e s t r a t e of 10.75% f o r one year and 3 months? W h a t i s t h e e x a c t d i s c o u n t r a t e ? Given:Required:Solution:A guy deposited P4,000, P4,500 and P5,000 at the end of the 2nd year, 3rd year and 4th year, respectively in a savings account which earned 0.09 per annum. Determine the future worth of the deposit?Noelyn invested her ₱2,000 at 6% compounded quarterly. How much will be the amount at the end of 5 years? * a. ₱2,699.61 b. ₱2,696.16 c. ₱2,691.17 d. ₱2,693.71
- Miss Calledo deposited P 1,000, P 1,500 and P 2,000 at the end of the 2nd year, 3rd year and 4th year, respectively in a savings account which earned 10% per annum. How much is in the account at the end of the 4th year?What is the balance of Gabriella’s $3000 after 8 years?Sipho and litha are brothers. The sum of their ages is 29. In 6 years' time Sipho will be the same age as Litha was 3 years ago. Determine the current age of the two brothers. Let x be the age of Sipho.
- thank you for responding! one question though, where does the 1.5 years come from?How do you enter this in the calculator to obtain the same answer of 2.13 years?Jean deposited P2,000, P2,500 and P3,000 at the end of the 2nd year, 3rd year and 4th year, respectively in a savings account which earned 0.06 per annum. Determine the future worth of the deposit? Use one of the following formulas. Show complete solution.
- For MACRS, goodwill has what useful life A) 5 year B) 7 year C) 15 years D) 30 years E) None of the abovea-1. Assume Shauna's AGI is $132,000. Determine Shauna's taxable income. Note: Round your intermediate calculations to the nearest whole dollar amount.1. Crystal deposited $16,000 in a new savings account at 7% interest compounded semiannually. At the beginning of year 4, Crystal deposits an additional $41,000 at 7% interest compounded semiannually. At the end of 6 years, what is the balance in Crystal’s account?