Example 1: Find the Net Present Value assuming cost of capital is 10 %? Year Cash Flow Rs. (1,000,000) 1 200,000 200,000 300,000 4 300,000 350.000

Q: Baltusrol Inc. has the following three investment opportunities. A P70,000 10,000 Initial investment…

A: Payback period is the amount of time required to recover initial investment.

Q: net present value

A: Difference between present value of cash inflows & outflows is NPV. Formula to calculate the NPV…

Q: Calculate the Leveraged IRR given the following information: Cash Flow Available for Investors and…

A: Leveraged IRR  Levered IRR is referred to as the internal rate of return with financing included in…

Q: 1. Compute the net present value at i=15% per year, compounded annually, for cash flow below: End of…

A: Note : As per the guidelines, only first question will be answered. Kindly post the remaining parts…

Q: An initial investment of $ 25000 in a business guarantees the following cash flows:Year Cash Flow3…

A: Net present value: It can be defined as a difference between the PVs (present value) of all future…

Q: What will be the profitability index if the initial cash outflow was $2,000,000 and the cash inflow…

A: Capital budgeting is referred as the process of decision making which is used by companies to…

Q: 1- Calculate the rate of return to be obtained for the investment to be made in the 1st year…

A: Investment means engaging your funds to generate income in the future. The rate of return (ROR)…

Q: 2. At an interest rate of 10% per year, calculate the capitalized cost of $10,000 (cost) in year 0,…

A: Capitalized Cost=-Initial Cost-Annual Payment×(P/A, r%, n years)-Terminal Payment×(P/F, r%, n years)

Q: compute the Net Present Value of the following set of cash flows:

A: Excel Workings:

Q: 3. An investment has the following cash flows. What is the ARR? Year 0 -120,000 30,000 40,000 60,000…

A: Cost of Investment : $120,000 Project Life : 5 Years Depreciation per year : $120,000 / 5 = $24,000…

Q: Given the following cash flow for a certain investment and a MARR of 12% per year: 0 1 2 3 4 5 6…

A: Here, Cash Flow in Year 0 is -P30,000 Cash Flow in Year 1 is -P 19,000 Cash Flow in Year 2, 3 and 4…

Q: The down payment or equity needed for this investment is $60,000 (outflow) Cash Flow $15,000 5,000…

A: Investment  $  60,000.00 Saving Rate 1.50% Loan Rate 8%

Q: 2. A real estate investment has the following expected cash flows: Cash Flows $10,000 25,000 50,000…

A: The Present Value   is the current value of a future amount i.e.,   it is the amount to be invested…

Q: A project is expected to provide the cash flows indicated below. Would you invest GH¢100000 in this…

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

Q: 6. Determine the equivalent present worth in year 0 (PT) of all of the cash flows at i = 12% per…

A: Data given: i= 12% Initial cash flow in year 0 = $30000 Annual cash flow from year 1 to 3 = $5000…

Q: What is the simple payback period (in years) tor an investment of $565,000 the net annuol income is…

A: Investment = 565,000 Annual Income = 55,000

Q: 3. 2. Year Cash Inflows $400,000 300,000 200,000 4 100,000 5. 200,000 What is the NPV of the…

A: Net Present Value is the difference between the current value of cash inflow and cash outflow for a…

Q: A company has the following net cash inflows. Today -$7000, Year 1-$15 000, Year 2-$9000, Year 3+…

A: Net present value (NPV) of an alternative/project refers to the variance between the initial…

Q: Given the cashflow tabulated below. What is the payback period using the discounted method at…

A: Discounted payback period is the most common capital budgeting technique which aims to ascertain…

Q: Investment Perlod 1 2 3. 4 $(1,000) $100 $100 $100 $100 $1,100 B (1,000) 264 264 264 264 264 (1,000)…

A: Net present value: NPV = Present value of cash inflows - present value of cash outflows. Formula:…

Q: IRR factor: Initial investment / Annual net cash flow = RM 253,000 / RM 282,050 = 0.90 From the…

A: Investment or project appraisal means to decide whether a particular investment or project should be…

Q: Assume r=0.1. What is the present value of the following stream of cash flow? Year 0 Year 1 Year 2…

A: Present value is the discounted value of future cash flows associated with the project. It is the…

Q: 6. Herbert, Inc. expects to generate earnings over the next five years of Php50,000.00;…

A: solution given Earnings   Year1 50000 Year 2 60000 Year 3 65000 Year 4…

Q: b) Aida Kamilia won RM1,000,000 in a contest, to be paid in twenty RM50,000 payments at yearly…

A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…

Q: For the following cash flow, calculate the equivalent AW. Assume i= 8% per year. Year Incomes…

A: Equivalent annual worth is the calculated by present value of annuity formula, where the present…

Q: Assuming today is 1st January 2021. Date Cash flows (Rs.) 01-Jan-21 (900,000 ) 31-Dec-21 0…

A: Cost of Capital 0.08 Date Cash flows (Rs.) 44197 -900000 44561 0 44926 240000 45291 320000…

Q: 1- Calculate the rate of return to be obtained for the investment to be made in the 1st year…

A: In manual calculation, we have to use hit and trial method. In this method, we start by arbitrarily…

Q: Year Amount $20,000/yr. 35,000/yr. 1-5 6-10 Find the present value of cash flows, assuming that the…

A: Present value means current worth of future payments at an interest rate of 14%,

Q: Net Cash Flow -530,000 +S3,000 +54,050 +55,100 +S6,150 +S11,250 +$6,000 +S7,200 +$8,640 EOY 2 8 For…

A: Capital Budgeting: Capital budgeting decisions are the most important decision in corporate…

Q: Determine the payback period for the following set of cash flows and interpret your answer. Year…

A: Payback Period The payback period is the method that helps in calculating the time in which the…

Q: Assume that investing $ 1,000 entitles you to a ten-year cash flow that yields $ 100 the following…

A: In order to calculate, present value of cash flows, we are required to discount the current value…

Q: Find the net present value (NPV) for the following series of future cash flows, assuming the…

A: NPV is the method under which cash inflows that are received during the lifetime of a project are…

Q: 3. Compute for the following: Required: Payback period, payback reciprocal, accounting rate of…

A: The question is related to Capital Budgeting. 1. Payback Period is the length of time required to…

Q: If the annual interest on capital investment is $2000 and annual deposit into depletion reserve is…

A: Annual net income means the profit earned after all the expenses has been deducted from sale…

Q: Net cash provided by operating activities is $2.70 million. Planned capital expenditures are $2.10…

A: Free cash flows is very important for a business organisation. It means that amount of cash flows,…

Q: 6.1 Consider the following cash flows and compute the equivalent annual worth at i = 10%: An…

A:

Q: For the cash flows shown, determine: (a) the number of possible i* values (b) the i* value displayed…

A: Calculation of the possible i* values, IRR and external rate of return using MIRR is shown below:…

Q: Consider another set of net cash flows:   Year Cash flow 0 1,000 1 1,000 2 0 3 1,500 4…

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

Q: Q#03: Suppose you have cash flows as follows: End of Year Cash Flows ($) 1 8000 7000 3 6000 4 5000…

A: Cash Flows: Year Cash Flow 1 8,000.00 2 7,000.00 3 6,000.00 4 5,000.00 Interest Rate =…

Q: Consider the following information: · Net income = $100 000 · Gross income = $300…

A: Discounted cash flow model: The discounted cash flow (DCF) technique of valuing an investment is…

Q: QUESTION-1 Consider the following cash flow and calculate the rate of return. MARR is 5%, compounded…

A: Year Cash flows present value factor @ 12% Present value of cash flow @ 12% Present value…

Q: A sum of $10,000 now (time 0) is equivalent to the following cash flow diagram. What is the value of…

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

Q: The following table represents the cashflows (in rand) of a company. Year Cash flows 3 40000 5…

A: The Modified Internal Rate of return: The modified rate of return is a useful measure to evaluate…