how much money should be invested at present value for this investment to be profitable

Q: Suppose that  in  3  years  the  company  must  disburse  $500,000  to  invest  in  another project…

A: Formula: Future Value Annuity=Investment(P)×1+rateinterval-1rate

Q: A firm has an opportunity to invest $100,000 in a project that will result revenue of $30,000 per…

A: Given: Initial investment is -$100,000 Revenue = $30,000 Maintenance = $8,000 Salvage value =…

Q: The initial investment is $52,133 and the salvage value is $10,000. The project is expected to…

A: Annual rate of return = (Annual Net Income / Average Investment)

Q: Foster Manufacturing is analyzing a capital investment project that is forecast to produce the…

A:

Q: Gold Mining, Inc. is using the profitability index (PI) when evaluating projects. Gold Mining's cost…

A: PI = PV of cash inflows / Initial Cost

Q: DON Corp. is contemplating the purchase of a machine that will produce cash savings of $29,000 per…

A: Total present value = Present value of cash saving + Present value of residual cash realize…

Q: Siemens AG invests €80,000,000 to build a manufacturing plant to build wind turbines. The company…

A: The term "payback period " refers to the amount of years needed to recoup the initial monetary…

Q: Note: You are attempting question 4 out of 12 The company is considering two projects. The initial…

A: Initial Investment Project A = 50,000 Project B = 60,00   Annual Cash Flows Project A = 26,000…

Q: (03) An international company intends to open a new branch in Mosul for a period of 8 years. The…

A:

Q: Retsa Company is considering an investment in technology to improve its operations. The investment…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: The investment in a new product requires a capital expenditure of € 45,000.-. The economic life time…

A: The minimum price which ensures the profitability will be the price at which the NPV of the project…

Q: You want to make an investment of $2,000,000 in new equipment which is expected to generate $230,000…

A: Given: Investment = $2,000,000 Revenue = $230,000

Q: 4. Engineering company has a project and the project capital is 60000 RO. The interest compounded…

A: Profit refers to surplus of revenue over the expenses of the business enterprise. It is the core…

Q: Answer each independent question, (a) through (e), below. a. Project D costs $10,000 and will…

A: book rate of return based on the average book value=Average net profit/Average investment…

Q: Your firm is trying to invest in a Project A for planning horizon of 5 years. The initial investment…

A: The internal rate of return is a financial calculation that is used to calculate the profitability…

Q: 10. Following information about a project is given a. Project duration: 10 years b. Risk free…

A: Net Present Value of a project here is the sum of the present value of the profits of the project.…

Q: You are evaluating a project that will cost $500,000, but is expected to produce cash flows of…

A: Cost of the project is $500,000 Annual cash flows are $125,000 Time period is 10 years Cost of…

Q: 7a. A large profitable corporation is considering a capital investment of $50,000. The equipment has…

A: Cash flow of a project means that what amount will flow in and out of the business by undertaking a…

Q: 5.Milen is considering an investment of $150,000. The useful life of the project is 15 years. The…

A: Formula: 1. PV Factor= 11+rn Where,  r is rate of return n is number of period 2. NPV= Rt1+it where,…

Q: Intro A project requires an initial investment of $77.4 million to buy new equipment, and will…

A: The IRR method is used to measure the profitability of a project. It uses the NPV formula but…

Q: Milen is considering an investment of $150,000. The useful life of the project is 15 years. The

A: Solution:

Q: evaluating a project that will cost $541,000​, but is expected to produce cash flows of $129,000 per…

A: NPV= Present value of cashinflows - Present value of cashoutflows.

Q: A company is considering investing in a project that requires a capital investment of $40,726 and is…

A: Solution: The NPV refers to the net present value of the project. To calculate the net present value…

Q: Week 4 Giant Equipment Ltd. is considering two projects to invest next year. Both projects have the…

A: Time value It tells that money received today by an individual has more worth than that of receiving…

Q: An investment has an initial cost of $3.2 million. This investment will be depreciated by $900,000 a…

A: The average accounting return or average rate of return is an accounting metric which helps in…

Q: Which investment should the company choose if its cost of capital is 10%? The company should choose…

A: Company should invest into such project or investment which are having the higher net present value…

Q: A company requires an initial investment of $75,000 with a residual value of $12,500 after five…

A: Answer initial investment = $75,000 residual value  = $12,500 annual returns = $20,000 Discounting…

Q: Week 4 Giant Equipment Ltd. is considering two projects to invest next year. Both projects have the…

A: Annuity refers to series of equalized payments that are paid or received at start or ending of…

Q: 1. Alpha Moose Transporters is considering investing in a one-year project that requires an initial…

A: As per Bartleby honor code, when multiple questions are asked, the expert is required only to solve…

Q: a) A company is considering investing in Project X. The project requires an initial investment of…

A: NPV is a capital budgeting techniques which help in decision making on the basis of future cash…

Q: A company is considering a long term investment that requires a $45.000 investment today, and then…

A: Net present value is the difference between present value of cash inflows and initial investment.…

Q: QUESTION 2   Your firm is trying to invest in a Project A for planning horizon of 5 years. The…

A: Since you have posted a question with multiple sub-parts, we will solve first sub-part for you, To…

Q: 3. Consider a project with an initial investment of $60,000, a 8 year useful life (and study…

A:

Q: An investment company is considering one of two possible business ventures. Project 1 gives a return…

A: Net Present Value- It is the difference between the present value of cash inflows and the present…

Q: 2. If an investment of 3,000,000 will have an annual revenue of 1,200,000 and an annual cost of…

A: Investment (I) = 3000000 Annual cashflow (A) = 1200000 - 700000 = 500000 n = 8 years Let r = ROR

Q: Using payback to make capital investment decisions Henry Hardware is adding a new product line that…

A: Compute the annual cash flows from the two years.

Q: 4. Capital expenditure of a new investment project is $ 120,000,000; the expected annual net cash…

A: Given Information : Investment Project cost =$120,000,000 Cost of capital = 10% Year Cash flow…

Q: A company is considering investing £46,000 in a machine that will be operated for 4 years, after…

A: Annual profit= Cashflow- Depreciation

Q: A company is considering a small project that requires an immediate investment of £120,000. Net…

A: Excel Spreadsheet:

Q: What is the project's profitability index rounded to two decimal places?

A: Profitability Index is method of evaluating investment. It is also known as ratio of profit to the…

Q: 2.- A project has a total cost of $8,700. The cash flows are $1,000 at first year, $2,000 in the…

A: Internal rate of return is an discount rate at which the Net present value of project will becomes…

Q: 3.) A project is estimated to cost $350,000, last 9 years, and have a salvage value of $90,000. The…

A: First we need to calculate present value(PV)  of all annual cash inflows by using this equation PV…

Q: 3-18. It is estimated that a certain pieće of equip- ment can savé $6,000 per year in labor and ma-…

A: Given Annual benefits = 6000 per annum Salvage value = 0 Time = 5 Years

Q: Suppose that a project has an immediate cost of $10 million and running costs of $1 million per year…

A: A. NPV = Cash inflow- Cash outflow Cash outflow= $ 10 million Cash inflow= Net profit/ interest rate…

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.