Maud'Dib Intergalactic has a new project available on Arrakis. The cost of the project is $34,500 and it will provide cash flows of $18,600, $23,800, and $22,100 over each of the next three years, respectively. Any cash earned in Arrakis is "blocked" and must be reinvested in the country for one year at an interest of 3.2 percent. The project has a required return of 8.2 percent. What is the projects's NPV? Can you please explain step by step calculations?

Maud Dib Intergalactic has a new project available on Arrakis. The cost of the project is $36,000 and it will provide cash flows of $19,800, $25,300, and $24,200 over each of the next three years, respectively. Any cash earned in Arrakis is "blocked" and must be reinvested in the country for one year at an interest of 3.5 percent. The project has a required return of 8.5 percent. What is the project's NPV?

A transport company has three potential projects planned. Each will require investment in two refrigerated vehicles at a total cost of K240, 000. The vehicle has a three-year life. The three projects are: Expected cash inflows, after deducting all expected cash outflows, are K120, 000 per annum. Expected cash inflows, after deducting all expected cash outflows, are K90, 000 per annum. Expected cash inflows, after deducting all expected cash outflows, are K80, 000 in year 1, K140, 000 in year 2 and K160, 000 in year 3. You are required to calculate for each project the payback period, the ARR, NPV and IRR, and to discuss why the results from NPV and IRR calculations may sometimes be incompatible with each other. The cost of capital is 10%  for the business.

Salalah Methanol Co. has bought some new machinery at a cost of 1250000 OMR. The impact of the new machinery will be felt in the additional annual cash flows of 375000 OMR over the next five years. What is the payback period for this project? If their acceptance period is three years, will this project be accepted?

Ace Inc. is evaluating two mutually exclusive projects—Project A and Project B. The initial investment for each project is $50,000. Project A will generate cash inflows equal to $15,625 at the end of each of the next five years; Project B will generate only one cash inflow in the amount of $99,500 at the end of the fifth year (i.e., no cash flows are generated in the first four years). The required rate of return of Ace Inc. is 10 percent. Which project should Ace Inc. purchase?   Group of answer choices Project A should be purchased because it has a higher net present value (NPV) than Project B. Project A should be purchased because it will produce cash every year for five years. Project A should be purchased because it has a positive net present value (NPV). Neither project should be purchased, because neither has a positive net present value (NPV).

Salim tourism company plans to spend AED 75,000 on a new project. The predicted net cash flows are AED 25,000, AED 40,000, 20,000 and 30,000 over the next 4 years. Salim tourism company's acceptance cut-off period is 2.506 years. (a) Calculate the payback period of the project. (b) Should Salim tourism company accept this project?

Ace Barker Inc. is evaluating two mutually exclusive projects: A and B. The initial investment for each project is $42,000. Project A will generate cash inflows equal to $15,600 at the end of each of the next five years; Project B will generate only one cash inflow in the amount of $70,000 at the end of the fifth year (i.e., no cash flows are generated in the first four years). The required rate of return of Ace Barker Inc. is 10 percent. Which project should Ace Barker Inc. purchase? O Project A should be purchased because it has a higher net present value (NPV) than Project B O Project A should be purchased because it will produce cash every year for five years. O Project B should be purchased because it has a positive net present value (NPV). Neither project should be purchased, because neither has a positive net present value (NPV).

XYZ is evaluating a project that would require the purchase of a piece of equipment for $580,000 today. During year 1, the project is expected to have relevant revenue of $756,000, relevant costs of $199,000, and relevant depreciation of $136,000. XYZ would need to borrow $580,000 today to pay for the equipment and would need to make an interest payment of $30,000 to the bank in 1 year. Relevant net income for the project in year 1 is expected to be $322,000. What is the tax rate expected to be in year 1? A rate equal to or greater than 19.95% but less than 24.42% A rate equal to or greater than 28.03% but less than 37.53% A rate equal to or greater than 37.53% but less than 51.10% A rate equal to or greater than 24.42% but less than 28.03% A rate less than 19.95% or a rate greater than 51.10%

Sierra Company is considering a long-term investment project called ZIP. ZIP will require an investment of $140,040. It will have a useful life of four years and no salvage value. Annual cash inflows would increase by $93,360, and annual cash outflows would increase by $47,847. The company's required rate of return is 12%. Calculate the internal rate of return on this project. (Round answer to 1 decimal place, e.g. 12.4%.) Internal rate of return % Identify whether the project should be accepted or rejected. The project should be

Cullumber Company is considering a long-term investment project called ZIP. ZIP will require an investment of $127,040. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $80,000, and annual cash outflows would increase by $40,300. Compute the cash payback period. (Round answer to 2 decimal places, e.g. 10.52.) Cash payback period years.