Suppose that  in  3  years  the  company  must  disburse  $500,000  to  invest  in  another project and therefore make annual and equal deposits on an investment to have the money in a timely  manner. The  rate  of  return    on  investment  is    12%. How  much  should the amount of deposits be?

Q: Consider an investment that costs $100,000 and has a cash inflow of $25,000 every year for 5 years.…

A: IRR is the rate at which NPV of the project is zero. Using excel IRR function

Q: Park Co. is considering an investment that requires immediate payment of $27,000 and provides…

A: Present value of $1 annuity = Annuity x ((1-(1+i)^-n)/i)

Q: Park Co. is considering an investment that requires immediate payment of $27,000 and provides…

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

A: 1.

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A: The present value of the investment is the amount that one invest in the current period. The future…

Q: An investment is expected to generate net operating cash inflows of $25,000 per year for each of…

A: Internal rate of return is the rate at which present value of cash outflows is equal to present…

Q: A company anticipates sales for the latest venture to be Tk. 300,000 in the first year. Sales are…

A: Working capital is the amount required to run day to day business activities. The term Working…

Q: A 2-year investment of $2,000 results in a cash flow of $150 at the end of the first year and…

A: Computation of IRR:

Q: Your future company has been presented with an opportunity to invest in a project with the following…

A: Rate of return is an expected profit on an investment by an investor. It is a rate at which investor…

Q: Alfarsi Industries uses the net present value method to make investment decisions and requires a 15%…

A: Present Value: The value of today’s amount to be paid or received in the future at a compound…

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: 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: A firm plans to invest in a new project that will last for four years and will generate revenues of…

A: Net-working capital is 15 % of the revenues.  Revenues are as follows: Year 1 =$1,000,000 Year 2 =…

Q: The JLK Corporation is considering an investment that will cost RM80,000 and have a useful life of…

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Q: You purchase machinery for $23,958 that generates cash flow of $6,000 for five years. What is the…

A: IRR is the rate of return a project generates through its lifetime expressed in annual terms. It is…

Q: What is the NPV of a project that costs $188,000 today and is expected to generate monthly cash…

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A: Given data, Initial investment = P3M Annual income =P1.2M Salvage value =10% of the investment…

Q: Microsoft Co. places 150,000 in an investment that has a return of 8%.     The investment is placed…

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A: In this we have to calculate internal rate of return on investment.

Q: A project that costs $2,600 to install will provide annual cash flows of $610 for the next 5 years.…

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Q: A company is considering the purchase of equipment for $270,000. Projected annual cash inflow from…

A: Payback period: It can be defined as the time that is usually taken by an investment before it…

Q: An investment of $23,500 in new equipment will generate income of $6,500 per year for 10 years. What…

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Q: The JLK Corporation is considering an investment that will cost RM80,000 and have a useful life of 4…

A: Payback period is the time taken to recover the initial investment

Q: If the investment is expected to earn revenue of P4,000,000, with cash expenses amounting to…

A: Payback period is the period which is required for the investment or the project to get the…

Q: The expected profits from a $165,000 investment are $55,000 in Year 1, $80,000 in Year 2, and…

A: Year Cash flows 0 -165000 1 55000 2 80000 3 120000

Q: An investment of P350,000 is made to be followed by payments of P200,000 each year for 3 years. What…

A: The yearly rate of return is computed by dividing the amount gained or lost at the end of the year…

Q: Starwood Ltd is considering to invest in a new project. The project is expected to generate cash…

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: An investment project costs $120,000. It is expected to have an annual net cash flow of $30,000 for…

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Q: An investment requires an initial disbursement of €2,500,000 and the duration of the project is 3…

A: Capital budgeting indicates the evaluation of the profitability of possible investments and projects…

Q: Park Co. is considering an investment that requires immediate payment of $27,000 and provides…

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

Q: What is the Profitability Index of a project that costs $28,000 today and is expected to generate…

A: Present value of all the cash inflows is the present value annuity of $3000 for 11 years at 7%.…

Q: Mima Sassa wants to spend PHP 600,000 on a new equipment. The machine's estimated service life is…

A: Here, Initial Investment is Php600,000 Annual Cash Flows is Php150,000 Time Period is 6 years

Q: Coastal Shipping is setting aside capital to fund an expansion project .Funds earmarked for the…

A: Given Current savings=$250,000 Savings per month=$50,000  Expenses per month=$150,000  Time=2 years…

Q: A project has an initial cost of $40,000, expected net cash inflows of $9,000 per year for 8 years,…

A:

Q: Assume that JL Corporation would like to know the amount of investment it will make in order to…

A: Amount of investment that JL Corporation should invest today in order to receive P500,000 after…

Q: A project has an initial cost of $264,000 and is expected to generate a single cash inflow of…

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Q: You have been asked to assess whether it makes sense for CASTEC INC. to invest in a new telecom…

A: Computation of Internal rate of return: Answer: IRR is 5.31% The formula for calculating operating…

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.