The firm is considering a project with a net cost of investment of ₱4,000,000 can bring in the following cash inflow: Year 1--> ₱700,000; Year 2--> ₱900,000; Year 3--> ₱850,000; Year 4--> ₱1,600,000; Year 5--> ₱750,000. The payback period would be? a. 3.97 years b. 4.20 years c. 4.54 years d. 4.99 years e. 5.00 years

Q: NUBD must choose one of two mutually exclusive projects. Project A has an up-front cost (t = 0) of…

A:

Q: A firm is considering an investment project that requires an initial outlay of RM10,000,000. The…

A: NPV is the net current worth of cash flows that are expected to happen in the future.

Q: Taggart Inc. is considering a project that has the following cash flow data. What is the project's…

A: Payback period is the time it requires for the project to recover its cost. The method does not…

Q: An investor is presented with alternative projects, A and B with the following end-of-year cash…

A: Frist we need to calculate the Net present value(NPV) of each project. NPV is the difference between…

Q: A project will generate the following cash flows. If the required rate of return is 15%, what is the…

A: To open the "NPV function" window - MS-Excel --> Formulas --> Financials --> NPV.

Q: M/s Sons & Sons is considering two projects, A &B, with cash flows as shown below: Cash Flow of…

A: Project A @13%- Discounted Payback Period- 4.034 years Year Cash Flow Net Cash Flow Discounted…

Q: The Janet Corporation is considering two mutually exclusive projects. The free cash flows associated…

A: Since more than three parts are asked at a time. The answer for first three questions is only…

Q: You have been asked to analyze two investment proposals, A and B. Project A's cost is RM80,000 and…

A: Internal rate of return or IRR is the rate at which NPV = 0  It is calculated via interpolation…

Q: What is payback period? Compute the payback period for an investment requiring an initial outlay of…

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

Q: A project requires an initial investment of $225,000 and is expected to generate the following net…

A: NPV or net present value is an important capital budgeting tool. It is used to determine if a…

Q: a. Determine the IRR of this project. Is it acceptable? b. Assuming that the cash inflows continue…

A: Information Provided: Cash Inflows = $45000 Cost of capital = 14% Initial Investment = $(309,600)

Q: You are considering two independent projects, Project A and Project B. The initial cash outlay…

A: Net Present Value (NPV), Internal Rate of Return (IRR) and the Profitability Index (PI) are…

Q: A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the…

A: Year Cash flow 0 -148000 1 68000 2 71000 3 55000

Q: A project requires an initial outlay at t = 0 of $4,000, and its cash flows are the same in Years 1…

A: Weighted Average cost of capital (WACC): The WACC is the overall cost of capital from all the…

Q: CSY Bhd is considering a project that has the following cash flow data.  What is the project's…

A: PB Period refers to the time in which the company could cover the amount invested in the project.

Q: XYZ Company is deciding whether or not they will push through with Project A, considering that they…

A: The capital investment decisions refer to the selection of the capital project based on the…

Q: If a company has a required rate of return of 15%, should the following project be accepted based on…

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

Q: The Janet Corporation is considering two mutually exclusive projects. The free cash flows associated…

A: Given:

Q: The investment required for a project is estimated at OMR 38,000. The cash flows expected from the…

A: Payback period = Years before payback period + (cumulative cash flow in the year before recovery)/…

Q: The total investment required for two projects are estimated at OMR100, 000. The cash flows expected…

A: Using excel for calculations

Q: The total investment required for two projects are estimated at OMR90, 000. The cash flows expected…

A: Payback period is period required to recover initial costs.

Q: Insigne Corporation is considering two investment projects (projects A and project B) that are…

A: We have the following data regarding outflows and inflows for the two projects:

Q: Tropical Candy Inc are considering two mutually-exclusive projects, A and B. Their cash flows are…

A:

Q: Phoenix Company is considering investments in projects C1 and C2. Both require an initial investment…

A: Year Project C1 Cash flows Project C2 Cash flows 1 26000 110000 2 122000 110000 3 182000…

Q: Project L requires an initial outlay at t = 0 of $59,664, its expected cash inflows are $12,000 per…

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

Q: The net cash flow per year for the investment projects A and B, is presented in the table below.…

A: NPV is the Net Present value of the project and is the sum of the present value of all cash inflows…

Q: A project requires an initial investment of $70,000 and has a project profitability index of 0.932.…

A: The question is related to Capital Budgeting. Profitability Index   It is similar to the NPV method.…

Q: A company needs to decide if it will move forward with two new products that it is  evaluating.  The…

A: A method of capital budgeting that helps to evaluate the present worth of cash flow and a series of…

Q: 5

A: Calculation of EAA for project A: Answer: Equivalent annual annuity (EAA) for project A is $20,179

Q: A company with a required rate of return of 12 percent is considering a project with an RM40,000…

A: IRR is the internal rate of return for a project. It is that rate at which the present value of the…

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: The Carlo Company has been allocated RM600,000 on investment projects for the coming year. Four…

A: As per company policy it is only possible to solve one question.

Q: Calculate the NPV & IRR of this project, when rate of cost of capital is 15%.

A: Information Provided: Initial cash outflow = 100,000 Cash Inflows (1) = 40,000 Cash Inflows (2) =…

Q: NUBD must choose one of two mutually exclusive projects. Project A has an up-front cost (t 0) of…

A:

Q: Phoenix Company is considering investments in projects C1 and C2. Both require an initial investment…

A: As per the given information: Initial investment - $330,000 Rate of return - 8%Net cash flowsProject…

Q: A project has an initial cost of P52,125, expected net cash inflows of P12,000 per year for 8 years,…

A: NPV is the difference between resent value of all cash inflows and initial investment. NPV =Present…

Q: project is expected to provide net cash inflows of RM125,000 in year 1, RM250,000 in year 2,…

A: Given information : Year Cash flows 0 -500000 1 125000 2 250000 3 300000 4 225000 5…

Q: Distinguish between hard and soft capital rationing

A: Capital Rationing is the strategy of picking up the most profitable projects to invest the available…

Q: 25

A: PROJECT B Year  Cash flows 0   (300,000.00) 1      150,000.00 2      150,000.00 3…

Q: Carland, Inc., has a project available with the following cash flows. If the required return for the…

A: Required rate of return = 8.1% Year Cash flow 0 -260000 1 68700 2 92600 3 118800 4…

Q: The total investment required for two projects are estimated at OMR90, 000. The cash flows expected…

A: Payback Period = Years before full recovery + (unrecovered cost at the start of the year/ cashflow…

Q: The total investment required for two projects are estimated at OMR90, 000. The cash flows expected…

A: Year Cash flow cumulative cash flow 1 25000 25000 2 38500 63500 3 42000 105500 4 48000…

Q: BAG Corporation is considering the following two projects; namely Project X and Project Y: Project Y…

A: YEAR PROJECT X PROJECT X PROJECT X PROJECT Y PROJECT Y PROJECT Y   CASH FLOW ACC. CASH FLOW CAL.…

Q: Phoenix Company is considering investments in projects C1 and C2. Both require an initial investment…

A: Net present value is the difference between Present Value of cash Inflows and Initial Investment. A…

Q: Calculate the payback period

A: Payback period is the number of period in which the aount invested shall be recovered through income…

Q: payback period

A: Payback period = Present investment/Cash inflows per year

Q: The total investment required for two projects are estimated at OMR100, 000. The cash flows expected…

A: Using excel for cumulative cash flow

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.