Initial investment............... $80,000   Annual after-tax cash inflow............. ?   Salvage value........................ $0   Net present value................ $13,600   Life of the project................ 7 years   Discount rate........................ 12%   Based on the data given above, the annual cash inflow from the project after the initial investment is closest to... (assume the after-tax cash flows are the same each year)   Select one: a. $23,747 b. $32,894 c. $36,428 d. $22,766 e. $20,509

Q: Project cash flow (Cash Flow From Assets) for Year 1 is: $5,800,600 $4,756,384 O $7,800,231…

A: Net cash flows from assets is the operating cash flows of the project investment. Operating cash…

Q: 7-12 Compute the rate of return on the following invest- A ment. Year Cash Flow -$10,000 1 3,000 3…

A: Information Year Cash flow 0 -10000 1 0 2 3000 3 3000 4 3000 5 3000

Q: net present value

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

Q: 8. Calculate Internal Rate of Return from the following information: Initial investment = Rs…

A: IRR is a discount rate that make NPV of project zero. We need to use excel to calculate IRR

Q: An investment in Machinery will yield annual cash earnings of P 12,000. The investment can be…

A: Given, Payback period = 4 years Annual cash earnings = P12,000 First of all, from the payback period…

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: wion: The project cost of investment is ? 6,00,000 and scrap value of ? 15,000. The profits after…

A: Return per unit of investment :                                                      Under this…

Q: [EXCEL] Perpetuity:Calculate the annual cash flows for each of the following investments: (a)…

A: Perpetuity is a perpetual annuity, it is a series of equal infinite cash flows that occur at the end…

Q: An investment of 199 dollars generates after tax cash flows of 40 dollars in Year 1, 80 dollars in…

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

Q: 1. An investment of PhR. 6500.00 earns the following interest per year in-0: 2=0:025, is=0:01,…

A: The interest rate gives the value with which money grow with time and interest is being accumulated…

Q: Cálčulăté the capital recovery for the following cash flow. Assume i= 8% per year.

A: Capital recovery is annual amount that is obtained after paying for all cost and salvage value and…

Q: What is the capital recovery (CR) cost of the project? Assume Cash Flow First cost, S Annual cost, S…

A: In this we need to calculate the capital recovery cost of project.

Q: Fixed capital investment 320 000 € working capital 35 000 € scrap value 30 000 € for the project…

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

Q: An investment of ₱ 8.5 million is expected to yield an annual gross income of ₱ 2.85 million. Annual…

A: Rate of return on investments means how much income has been earned on the given amount of…

Q: Question 1. A project costs 5,00,000 and yields annually a profit of * 75,000 after depreciation @…

A: Here in this question, we are require to calculate the net cash inflows of the project. For…

Q: Assume a RM300,000 investment and the following cash flows for two products: Year Product X Product…

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

Q: Compare between the following two (After Tax cash flow) machines using internal rate of retura…

A: Internal rate of return is the real return from an investment or a machine by considering future…

Q: (Prese of payn nts) Yóu áré given invéšt- ипeven stre ment alternatives to analyze. The cash flows…

A: Money will reccive in future would not be of same worth that of today. Since there is discounting…

Q: 2. Determine Project Y's payback period Project Y Numerator: Initial investment $ Payback Period 1…

A: Capital budgeting The process that involves the allocation of funds into a firm's long-term…

Q: Assume a $250,000 investment and the following cash flows for two products:   Year Product X…

A: Payback period = year's before full recovery + (unrecovered cost at the start of the year/ cashflow…

Q: ving three relations, the correct one to calculate the annual v Cash Flow cost, S ual cost, S per…

A: Annual worth can be calculated by present value method and future value method.

Q: Compute the IRR for Project F. The appropriate cost of capital is 11 percent. (Do not round…

A: Calculation of IRR:The IRR is 10.20%.Excel Spreadsheet:

Q: C. Suppose that the initial cost of a certain operation is $25000 at the beginning of the first…

A: Cash flow (CF) diagram refers to a visual represent of the cash flows (income and expenses) of a…

Q: Project A has the following information: Year 0 1 2 3 4 5 Initial investment outlay 125,000…

A: NPV is calculated by deducting present value of cash outflows from present value of cash inflows.

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: A company anticipates a taxable cash expense of $80,000 in year 2 of a project. The company's tax…

A: Cash expense $80,000   Less: Tax benefit ($80,000 x 30%) $24,000   Net cash expense $56,000

Q: Payback   Machine X Cumulative cash flow Machine Y Cumulative cash flow Investment 1,000,000…

A: In financial management, capital budgeting process is used to evaluate the profitability and…

Q: Compute the IRR statistic for Project F. The appropriate cost of capital is 11 percent. (Do not…

A: Calculation of IRR:The IRR is 3.38%.Excel Spreadsheet:

Q: ng data pertain to an investment in equipment: at in the project.. et cash inflows. capital…

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

Q: pose Hungry Whale Electronics is e estment of $2,225,000. The project Year Cash Flow Year 1 $350,000…

A: Note : As per the guidelines only first question will be answered.

Q: Income from Net Cash Year Operations Flow $100,000 $180,000 2 40,000 120,000 40,000 100,000 10,000…

A: Net present Value (NPV) is the contrast between the current estimation of money inflows and the…

Q: A Kshs.2.2 million investment will result in the following year end- c Year Cash flow 1 Kshs 1.6…

A: Net Present Value is the difference between the present value of cash inflows and cash outflows.

Q: What rate of interest compounded annually is involved if:

A: A concept through which it is studied that the current worth of money is higher than its future…

Q: Calculating IRR Compute the internal rate of return for the cash flows of the following two…

A: IRR is the rate at which NPV becomes Zero Using excel IRR function

Q: Calculate the annual cash flows for the given investment: 91,000 invested at 10 percent.

A: Given details are : Investment Amount (Present value)= 91000 Discount rate = 10% = 0.10 We need to…

Q: The following information is available for a potential capital investment. Initial investment…

A: Profitability index is ratio of the present value of cash flow to the initial investment of the…

Q: The company Alumnos Emprendedores S.A. has an investment for a total amount of $175,800.00, and…

A: Period of Recovery (in years) = Investment / Annual Cash Flow

Q: The following information Company: available for a potential investment for Rose   Initial…

A: NPV = P36224 Initial investment = P80000

Q: a. Determine the equal annual net cash flows from operating the bulldozer. Jones Excavation Company…

A: Net present value method discounts all cash inflows with the required rate of return and then…

Q: At the end of a capital project the equipment has been fully depreciated and is sold for $30,000.…

A: Terminal cashflow is the cashflow at the end of the project. It has two components sale price of the…

Q: future

A: Thanks for the question. Value engineering is a management related question. Calculating the future…

Q: Project X had total revenues of Rs. 1,50,000 and total expenses of Rs. 75,000. The total…

A: Return on risk adjusted capital : It means net income for owners of the company to risk weighted…

Q: stment required ent value of cash inflows $13,000 $16,330 $61,000 $92,930 $106,000 $126,460…

A: The profitability index (PI) is a financial tool to measure the profitability of a proposed…

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.