You are considering a project with an initial cost of P7.8M. Find the payback period and the NPV for this project if the cash inflows are P1.1M, P1.64M, P3.8M, and P4.5Ma year over tenext Four vears respectively, Cost of Capital is 6.5%.

Q: Consider a project with free cash flows in one year of $148,100 or $180,200, with each outcome being…

A: Given, cashflows at weak economy is $148,100 Cash flow at strong economy is  $180,200 Cost of…

Q: You have a project that has an initial cost of $675,000. It is expected to earn $82,000 annually for…

A: Initial Cost = $675,000 Annual cash flow = $ 82,000

Q: The table bellow shows the cash flow for an engineering project, if the reinvestment rate of return…

A: ERR is a technique used for investment appraisal.

Q: You are considering an investment for which you require a rate of return of 8.5 percent. The…

A: Companies have different alternatives to invest their money in, but they should always compare the…

Q: Fusion Energy is evaluating a project that has the following annual free cash flows: Period   0   1…

A: The formula to calculate NPV= NPV=F/[(1+i)^n] where: PV = Present Value F = Future payment (cash…

Q: Project L requires an initial outlay at t = 0 of $50,000, its expected cash inflows are $11,000 per…

A: NPV is the difference between present value of all inflows and initial investment. NPV can be…

Q: Project L requires an initial outlay at t = 0 of $35,000, its expected cash inflows are $8,000 per…

A: Answer:

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

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

Q: here are two investment alternatives for the beta project which require an investment of IDR 10…

A: Net present value Net present value is the Technique of capital budgeting which is calculated by…

Q: Consider a project that requires a $10 000 cash outlay and provides $5000 after one year and $7000…

A: NPV and profitability index are capital budgeting techniques, which are used to compare the net…

Q: A firm evaluates a project with the following cash flows. The firm has a 2 year payback period…

A: Calculation of NPV, Payback Period, Discounted Payback Period and Profitability Index: Excel…

Q: A Project has a cost of $65,000 and it's expected cash inflows are $12,000 per year for 9 years and…

A: MIRR- Formula to be used:  MIRR = Terminal Cash inflowsPV of cash outflows1n-1   Data given: Cash…

Q: Compute the Payback statistic for the following project and recommend whether the firm should accept…

A: Cost of capital = 11% Maximum allowable payback = 3 Years   Time: 0 1 2 3 4 Cash…

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: Project L requires an initial outlay at t = 0 of $55,000, its expected cash inflows are $14,000 per…

A: The NPV of project is calculated as present value of cash inflows minus the initial outlay

Q: Nashville's Kitchen Corp. is considering a proposed project with the following cash flows.  If both…

A: MIRR = Future value of cash inflowPresent value of cash outflow1/n-1   Note: Alternatively we can…

Q: Project H requires an initial outlay at t = 0 of $55,000, its expected cash inflows are $13,000 per…

A: NPV refers to net present value. It is an important capital budgeting tool that is used to determine…

Q: Compute the Discounted Payback statistic for Project X and recommend whether the firm should accept…

A: Year Cash Flow 0 -1000 1 350 2 630 3 550 4 450 5 300 Discounted Payback period = 3…

Q: Calculate the net present value of a project which requires an initial investment of ₱1,000,000 with…

A: Net Present Value (NPV) is one the capital budgeting technique which is used to analyze the…

Q: Suppose your firm is considering two mutually exclusive, required projects with the cash flows shown…

A: Calculation of Profitability Index (PI):The profitability index (PI) of Project A is 1.80 and…

Q: Project L requires an initial outlay at t=0 of $65,000, its expected cash inflows are $12,000 per…

A:

Q: Find internal rate of return of a project with an initial cost of $43,000, expected net cash inflows…

A: Working of the IRR of the Project is shown below: Hence, the IRR is 14.90%.

Q: The initial cost of the project is 20,000 EUR. You assume that you will be able to generate cash…

A: Calculate the net present value as follows: Net present value = Present value of cash inflows -…

Q: Suppose you make a $5,000 investment that will return $3,000 in year 2 and another $3,500 in year 4,…

A: NPV is net of present value of future cash flows and cash outflows. Future cash flows are discounted…

Q: Assuming you are facing with making a decision on a large capital investment proposal. the capital…

A: Cash flow diagram is the representation of the cash outflows and inflows of a project. Any cash…

Q: With an initial cost of $100,000, a WACC of 15%, and subsequent cash flows for years 1, 2, 3 of…

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

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: XYZ is considering a 3-yr project. The initial outlay is -$120,000, annual cash flow is $50,000 and…

A: Calculation of Net present value (NPV):Answer:Net present value (NPV) is $4,988.13

Q: Suppose a project has the following cash flows. What is the NPV if the cost of the project is…

A: NPV stands for the net present value wherein the present value of cash inflows is equal to the…

Q: A project has an initial cost of $40,000, expected net cash inflows of $9,000 per year for 7 years,…

A:

Q: You are considering investing in a project that has an initial cost of $10,000, a WACC of 10%, with…

A: NPV = present value of future cashflows

Q: Project L requires an initial outlay at t = 0 of $40,000, its expected cash inflows are $10,000 per…

A: Net present value is the capital budgeting technique that is used for evaluating investment…

Q: Project L requires an initial outlay at t = 0 of $40,000, its expected cash inflows are $15,000 per…

A: Net present value is the excess of the present value of cash inflows over the present value of cash…

Q: A firm evaluates a project with the following cash flows. The firm has a 2 year payback period…

A: YEAR CASH FLOW  Discount rate       0  $                  (39,000.00) 1  $…

Q: XYZ is considering a 3-yr project. The initial outlay is -$120,000, annual cash flow is $50,000 and…

A: The NPV can be calculated with the help of present value of all cash flows.

Q: The project's payback is 1.5 years, and it has a weighted average cost of capital of 10 percent.…

A: From the payback period, initial cost can be calculated. MIRR is the annual growth rate of future…

Q: A firm evaluates a project with the following cash flows. The firm has a 2 year payback period…

A: Therefore, the Net Present Value is OMR 8,893.62.

Q: A project has expected cash inflows starting with year 1 of $2,200; $2,900; $3,500; and finally in…

A: Given information: Expected cash flows are $2,200, $2,900, $3,500 and $4,000 Profitability index is…

Q: A project that costs $2,300 to install will provide annual cash flows of $730 for each of the next 5…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: An investor is considering a project which requires an outlay of 3 million pounds initially (t = 0),…

A: Internal rate of return (IRR) is a metric used by corporations to determine the rate of return on…

Q: A firm evaluates a project with the following cash flows. The firm has a 2 year payback period…

A: Calculation of NPV, Payback Period, Discounted Payback Period and Profitability Index: Excel…

Q: Consider the following cash flow profile, and assume MARR is 11 percent/year. ΕΟΥ NCF $-115 $19 2…

A: a) According to Descartes' rule of signs, there are as many IRRs as there are sign changes in the…

Q: Suppose your firm is considering two mutually exclusive, required projects with the cash flows shown…

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

Q: A project has a NPV of 15,000 when the cutoff rate is 10%. The annual cash flows are 20,505 on an…

A: Profitability index is used to see the attractiveness of investment or a project. It is also written…

Q: a). When ε= 15% and MARR = 20% per year, determine whether the project (whose total cash flow…

A: Capital budgeting is a way to evaluate the profitability of new projects or investments by using…

Q: You are considering a project with an initial cost of $59,700 and annual cash inflows of $10,905 in…

A: At profitability index 1 present value of cash inflow will be equal to initial cost, therefore to…

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.