Consider a project with the following cash flows: Year Cash Flow - 10000 5000 2 5000 3 5000 4 5000 Assume the appropriate discount rate for this project is 15%. The payback period for this project is closest to: A. 3 B. 2.4 C. 1.6 O D. 2

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A: Capital budgeting techniques are used to analyze the profitability of long term projects and…

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A: Capital Budgeting Techniques are used to choose the most profitable investment alternative. Based on…

Q: heinhardt Wig Company is considering a project that has the cash flows: Year         Project Cash…

A: Discounted payback period = years before discounted payback period + (cumulative cash flow in the…

Q: alculate the NPV of project X

A: It refers to the long term investment decisions that has been taken by the top management of a…

Q: A project requires an initial outlay of P 100 000. The relevant inflows associated with  the project…

A: The net present value is calculated as the present value of cash inflows minus the initial…

Q: question 2

A:

Q: Using the method of your choice calculate the Net Present Value of the following cash flows. Assume…

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A: Here, To Find: Part A. Net Present Value (NPV) =? Discounted payback period =? Part B. Payback…

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Q: At what discount rate does the following project have a positive NPV of exactly $1,000?

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

Q: what is its initial cash outlay?

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A: Discounted Payback(PB) Period shows the time period in which present values(PV) of all cash inflows…

Q: A Project requires a current investment of $1,760.00 and yields future expected cash flows of…

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

Q: Zenith investment plc is considering the bellow project, USD Initial Cash Outlay Discount Rate…

A: NPV is basically the net present value which is the present value of all the cash flows minus…

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A: Net present value means the difference between present value of cash inflow and present value of…

Q: Consider a project with the cash flow as depicted in Table 1: The discount rate for this project is…

A: Formulas:

Q: A project has the following cash flows : Year Cash Flows -$12,400 5,530 7,990 5,360 4. -1,500…

A: The capital budgeting technique is used for the purpose of evaluating different projects in order to…

Q: Consider a project with the following cash flows: Year Cash Flow - 10000 1 5000 5000 3 5000 4 5000…

A: Discount Rate = 15% Time Period = 4 Years

Q: a) The cost of a proposed project is $10,000 and has annual cash flows pf $2,900 for six years. a.…

A: The discounted payback period is the time period in which the project will recover the initial cash…

Q: 2. For the net cash flow series shown, find the external rate of return using the ROIC method at an…

A: For calculation external rate of return, first we need to discount the outflows at rate of…

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A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: What is the project's payback

A: The payback period is the time duration taken to reap back the amount invested in the project. The…

Q: The project NPV is 14.95. The initial investment 15m. The discount rate is 4.5% per annum. What is…

A: The payback period is one of the capital budgeting techniques which is only used to estimate the…

Q: What is the NPV of the following project if the discount rate is 11%? Round to the nearest…

A: NPV refers to net present value of an investment or a project. It is used in capital budgeting.

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A: You should invest in the project with higher NPV

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Q: An investment project costs X. It is expected to have an annual net cash flow of 0.125X for 20…

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Q: If ɛ = 10% per year, what is the ERR for the cash flows of this project? Let MARR = 10% per year.…

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Q: A project’s cash flows are listed below. Assume the appropriate discount rate for this project is…

A: Given:

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

Q: Whichever project you choose, if any, you require a return of 14 percent on your investment.…

A: Formulas:

Q: Consider the investment project with the following net cash flows: What would be the value of X if…

A: Internal rate of return(IRR) is the rate where the net present value of a project is zero.

Q: Consider the following cash flows:  Year 0 1 2 3 4 5 6  Cash Flow -$8,000 $3,000 $3,600 $2,700…

A: Since you have asked a question with multiple parts, we will solve the first 3 parts for you as per…

Q: Find the value X such that the project's rate of return would be equal to 15% End of Year Cash Flow…

A: Cash flow: It refers to cash coming in and coming out in the business. When cash inflow is over and…

Q: Referring to the table below, calculate the Net Present Value (NPV) and Profitability Index (PI).…

A: Net present value is the sum of all the discounted cash flows during the tenure of the investment.…

Q: Consider an investment project with the following net cash flows: What would be the value of X if…

A: The IRR of a project is the rate that sets the initial costs equal to the discounted future cash…

Q: Consider a project with the following cash flows: Year Cash Flow - 8000 1 4000 2 4000 3 4000 4 4000…

A: Payback period is The length of time required for an investment to generate cash flows sufficient to…

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: Consider a project with the following cash flows: Year Cash Flow - 12000 1 3000 2 3000 3 3000 4 3000…

A: Discount rate = 14% Year Cash flow 0 -12000 1 3000 2 3000 3 3000 4 3000

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.