3. A man has an investment of P 13, 760.00 in cash for equipment. His estimates of the yearreceipts and disbursements for all purposes are shown below.YearReceiptsDisbursementP0.00P 13, 760.001.P5, 000.00+P 1, 000.002P 6, 200.00+P 1, 200.00P7, 500.00+P 1, 500.004P8, 800.00+P 1, 800.00He estimates that his equipment has a salvage value of P 2,000.00 at the end of its useful life.Find the rate of return of the investment.Given:Required:Solution:PRODUCE NOT FOR SALE

There are three scenarios: Assumes the salvage value is already included in the receipts. Scenario…

Answered: 3. A man has an investment of P 13,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following are a project's cash flows. What is the projects year - 110155450 cash flows - 9.70% 5. 14.660%. 8.64% 10.78% . =. 16.94% IBR? $450 $40 3 8490
The following are the cash flows of two projects: Year 0 1 2 3 4 Project A $ (220) 100 100 100 100 Project B $ (220) 120 120 120 What are the internal rates of return on projects A and B? Note: Enter your answers as a percent rounded to 2 decimal places. Project A B IRR % %
The following are the cash flows of two projects: Project B Year Project A 0 $ (235) $ (235) 115 135 115 135 115 135 115 1234O 1 2 3 4 What are the internal rates of return on projects A and B? Note: Enter your answers as a percent rounded to 2 decimal places. Project A B IRR % %
Information on four investment proposals is given below:Investment ProposalA B C DInvestment required ........................ $(90,000) $(100,000) $(70,000) $(120,000)Present value of cash inflows ......... 126,000 138,000 105,000 160,000Net present value ............................ $ 36,000 $ 38,000 $ 35,000 $ 40,000Life of the project ............................ 5 years 7 years 6 years 6 yearsRequired:1. Compute the project profitability index for each investment proposal.2. Rank the proposals in terms of preference.
A3 4a. We have two mutually exclusive investments with the following cash flows: Year Investment A Investment B 0 –$100 –$100 1 10 50 2 30 40 3 50 30 4 70 20 a. Using a financial calculator, calculate the IRR for each of the investments. State your answers in percentages rounded to two decimal places.
Example (1): You have the following data: Details 12/31/2020 1/1/2020 60000 80000 40000 150000 15000 50000 10000 20000 Fund Assets Debtors Goods Liabilities Creditors and you have available additional information: 1. Additions to the capital amounted to 100,000 dinars . 2. Withdrawals from the capital amounted to 40,000 dinars. Required: Extracting the result of the activity works on 31/12/2020.
Compute the payback period for an investment with the following net cash flows (Round your answer to one decimal place.) Net Cash Flows per Year $ (115,000) 11,000 21,000 21,000 2. 3. 4. Year 41,000 years Cumulative Net Cash Flows $ (118,000) (105,200) (84,400) (62,000) (37,620) 4,100 45,900
2. Compute the IRR for the investment represented by the following cash flow table: Year 1 4 6. 7. Cash Flow -1200 +350 +300 +250 +200 +150 +100 +50 (in $1000's)
The following are the cash flows of two projects: Year Project A Project B 0 $ (390 ) $ (390 ) 1 220 290 2 220 290 3 220 290 4 220 What is the payback period of each project? (Round your answers to 1 decimal place.) I In Years
ou are given three investment alternatives to analyze. The cash flows from these three investments are as follows: Investment End of Year A B C 1 $ 2,000 $ 2,000 $ 6,000 2 3,000 2,000 6,000 3 4,000 2,000 (6,000) 4 (5,000) 2,000 (6,000) 5 5,000 6,000 16,000 a. What is the present value of investment A at an annual discount rate of 13 percent? b. What is the present value of investment B at an annual discount rate of 13 percent? c. What is the present value of investment C at an annual discount rate of 13 percent?
at the beginning of year one, you have $100,000. Investments A and B are available. Their cash flows are as follows year 1 investment A $-1, investment B $0 Year 2 investment A $.5, investment B $-1. Year three investment A .8 investment B .8. In year 4 investment a .2 investment B .7. Assume that any money not invested in a or B earns interest at an annual rate of 2.5%. Determine how to maximize your cash on hand in your four
We know the following data of an investment that the company has made: An initial disbursement of € 2,000,000 and generates the collections and payments in the successive years of its duration that are shown in the following table: Years Collection (€) Payments (€) 1 Year 2 Year 3 Year 4 Year 4.500.000 5.500.000 6.000.000 4.000.000 3.800.000 4.500.000 5.000.000 3.200.000 Calculate the IRR of the previous project. Justify for what type of discount this investment will be made.

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