For the net cash flow (NCF) shown below, find the EROR by the Modified ROR Approach (MIRR) method if ib=10%, and i-15%. Determine if the project is justified at MARR=18%. Year 0 1 2 3 4 Net Cash Flow, $ +48,000 +20,000 -90,000 +50,000 -10,00
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- An investor purchased a one-acre lot on the outskirts of a city for $9000 cash. Each year he paid $80 of property taxes. At the end of 4 years, he sold the lot. After deducting his selling expenses, the investor received $15,000. What rate of return did he receive on his investment? Formulate the NetPW equation to calculate the ROR and use Microsoft Excel to calculate the ROR. Attach your excel worksheet.Tim wants to know the value of a real estate company he's planning to invest with. He expects a cash return of BD1500 at the end of first year, BD 3250 at the end of third year, and 12500 at the end of fifth year when the property is sold. Determine the value of an asset with 15% required return.YOUR FATHER PLANS TO INVEST P500,000.00 IN AN AUTO WASHING MACHINE WITH THE FF DATA: (20 PTS.) WASHING CAPACITY- 12 CARS/HR AT 8HRS OPERATION/DAY FOR 6DAYS A WEEK AND 50 WEEKS/YEAR CAR WASH CHARGE-P25/CAR MANUAL LABOR COST ( 2 WORKERS)-P25/HR PER WORKER PLUS A PAID VACATION BENEFITS OF 2 WEEKS PER YEAR MAINTENANCE COST-P8500.00/MONTH DESIRED RATE OF RETURN ON THE CAPITAL-20% PRESENTLY YOUR FATHER IS EARNING P25,000.00/MONTH AS A REGULAR EMPLOYEE AND WANTS TO CONCENTRATE ON THIS BUSINESS AND WANT TO RECOVER HIS INVESTMENT IN 5 YEARS. USING ROR AND AW METHOD OF ECONOMY STUDIES, SHOULD YOUR FATHER PROCEED WITH THE INVESTMENT?
- Hadeel borrows money in the senior year to buy a new car. The car dealership allows to defer payments for 12 months, and Hadeel makes 36 end of month payments thereafter. If the original loan is $24,000 and interest rate is 0.5% per month on the unpaid balance, how much will Hadeel payments be? $698.80 $774.62 $620.65 $700.56 detailed answer without usage of excelDetermine the IRR for this projectFive years ago, Logocom made a $5 million investment in a new high-temperature material. The product was not well accepted after the first year on the market. However, when it was reintroduced 4 years later, It did sell well during the year. Major research funding to broaden the applications has cost $15 million in year 5. Determine the rate of return for these net cash flows (in $1.000 units). Year NCF, $1000 -5,000 4,500 4 21,500 -15,000 The rate of return is % per year.
- ! Required information Cisco Systems expects sales to be described by the cash flow sequence (6000 + 5K), where k is in years and cash flow is in millions. Determine the value of n for the gradient if the cash flow ends in year 11. The range of kis 1, 2,...... The value of nis(c) A project which requires an initial outlay of RM9,000 will produce the following annual inflows: [Sebuak nroiek yang memerluka perbelaniaan pernulaan sehanvak, RM9,000 akau meugbasilkan aliran masuk tahunan.senerti yang berikut:1 Table 1: Annual inflows for 3 years consecutively. Jadual 1: Aliran masuk tahunan selama 3 tahun berturuLAUM ] Year Annual inflows RM2,000 RM4,000 RM6,000 3 If the discount rate is 8% per annum, calculate the NPV (Net present value) of the project. [Sekirane kada: diskaum adalah 8% setaln bituekan NPV (Nilai kini bersik) prgiek ] (6 Marks/ Markgh)The equivalent amount of money that can be spent seven years from now in lieu of spending $50,000 now at an interest rate 18% per year is closest to:a. $15,700b. $159,300c. $199,300d. $259,100
- A company would like to invest on a project. The rate the company uses to justify their investments, i.e. the MARR is 25% per year (compounded yearly). Their estimations about the projects are as follows: Initial Cost: ($300,000)The Study Period: 15 yearsSalvage (Market) Value of the Project: 20% of the initial cost 1-) What is the capital recovery cost, CR? 2-) Operating costs in the first year are estimated to be ($7,500) and these operating costs are estimated to increase by 5% per year. Construct cash flow table and determine the minimum amount of annual revenue ($ per year?) that makes this investment an attractive option for the company? (i.e. what is Equivalent UNIFORM (Annual) Cost, EU(A)C?) 3-) Benefits in in the first year are estimated to be $30,000 and these benefits are estimated to increase by 13% per year. Construct cash flow table and determine the net present value/worth of the project, NPW. 4-) What is the simple payback period? 5-) Determine IRR of…How much money should be deposited annually in a bank account for five years if you wish to withdraw $4,000 each year for three years, beginning five years after the last deposit? The interest rate is 5% per year. The annual deposit amount should equal _____You have received the proposal to invest $1,000,000 in exchange for receiving income of $75,000 at the end of the first month that would decrease 0.3% each month starting from the 2nd month. Expenses are estimated at $25,000 at each end of the month, starting from the 1st month. Assume that the proposal will last 5 years and that the minimum acceptable rate of return (m) is 1.5% per month. What does the Present Value criterion recommend? Show your work. If flow patterns are found (uniform, arithmetic, exponential), use factors.