4. Which of the two alternatives would you select under the net present value? (PV factor - 10 percent) Assume a $100,000 investment and the following cash flows for two alternatives: INVESTMENT A ($) 30,000 50,000 20,000 60,000 INVESTMENT B (S) 40,000 30,000 15,000 15,000 50,000 YEAR 1 2 4

Q: Data for two alternatives are as follows: Alternatives A B Investment P35, 000 P50, 000 Annual…

A: NPV is the difference between the Present Value of Cash Inflows and Initial Investment. A project…

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A: Formulas: Calculations: Therefore, the Project B should be selected as it has lower discount…

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A: Present value is the present worth of any sum of money to be received in the future at a specified…

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

Q: Suppose martin corp is considering a project that has an initial cost of $3,285,000 and the…

A: Given: Year Cash flow 0 -$3,285,000 1 $1,357,000 2 $1,568,000 3 $1,224,000

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A: NPV is the present value of future cash flows. It is a tool which is used to decide whether the…

Q: Assume a $50,000 investment and the following cash flowa for two aleternatives..    Year…

A: given, year A B 0 -50000 -50000 1 10000 20000 2 11000 25000 3 13000 15000 4 16000 0 5…

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Q: Problem-11: The Corporation is considering a capital investment of Tk. 12,00,000 in a project, which…

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A: Mutually Exclusive Projects : It is the concept capital budgeting process that  a single project out…

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A: Cash flows refers to the net amount of funds that are being transferred in and out of the business…

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Q: 22

A: The calculation of net present value for project B is shown in the below table:

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Q: 5

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Q: answer high of the two alternatives would you select under the net present value?

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Q: If

A:

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Q: 25

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.