A company is planning to expand its business which is costing OMR 80000. The following cash inflows are expected to come. Calculate Profitability index for the machine given the rate of discounting to be 5.005% Machine A Years 15000 1 23000 42500 3 52300 4. اختراحد الخيارات a 1.50 b. 0.23 C. None of the options d. 1.34 e 254

A company is planning to expand its business which is costing OMR 80000. The following cash inflows are expected to come. Calculate Profitability index for the machine given the rate of discounting to be 5.005% Machine A Years 15000 1 23000 42500 3 52300 4. اختراحد الخيارات a 1.50 b. 0.23 C. None of the options d. 1.34 e 254

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Based on the picture, Calculate: a) The payback period for the project b) The discounted payback period for the project c) The net present value for the project Please help me ASAP. Thank you. I'm tryna do my revision. ?
Dragon Products Company is considering two projects. Theprojects’ cash flows are as follows: EXPECTED NET CASHFLOWSYEAR PROJECT A PROJECT B0 ($10300) (12,500)1 1700 28702 1930 24503 2500 47004 2800 45755 4200 3450Discount Rate for both pojects = 6.8% REQUIRED 1. Find the Payback Period [PBP] of both projects2. What is the Discounted PBP of both projects ? 3. Calculate the Net Present Value of the two projectsand decide which one is better?4. What is the profitability index of both products ?What is the function of PI in project selection? 5. What are the IRR of the projects ? Which of theprojects is the best using IRR as a criteria? Why?6. Why is sunk cost not considered when decidingabout selecting a project? Which cost is consideredand why?
Salalah Wind Energy has taken up a new project with an initial investment of 50000 OMR.The expected future cashflow from the project over the next three years will be 22500 OMR, 23500 OMR and 24500 OMR.What is the profitability index if the discount rate is 7 percent? اخترأحد الخيارات a. 1.63 b. 1.48 c. 1.44 d. 1.23 e. None of these
Hh.17.
The two machines shown are being considered for a chip manufacturing operation. Assume the MARR is a real return of 11% per year and that the inflation rate is 6.1% per year. Мachine First Cost, $ M&O, $ per year Salvage Value, $ Life, years A В -148,000 -70,000 40,000 5 -1,060,000 -5.000 200,000 00 Problem 14.056.a: Compare two alternatives based on their AW values without inflation consideration Which machine should be selected on the basis of an annual worth analysis if the estimates are in constant-value dollars? What is the annual worth of the selected alternative? Select machine A The annual worth of the alternative is $ -121600
Duo Corporation is evaluating a project with the following cash flows: Year Cash Flow 0 -$ 28,900 1 11,100 2 13,800 3 15,700 4 5 12,800 -9,300 The company uses an interest rate of 9 percent on all of its projects. a. Calculate the MIRR of the project using the discounting approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the MIRR of the project using the reinvestment approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. Calculate the MIRR of the project using the combination approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Discounting approach MIRR b. Reinvestment approach MIRR c. Combination approach MIRR % % % 1
Find the Payback period for Oman Lighting company if the initial investment is 12000 OMR and the cash Inflows are as follows: Year 1 =3250 OMR; Year 2 =3500 OMR; Year 3=3750 OMR and Year 4=4000 OMR. Select one: a. None of the options b. 3 years 4 months c. 2 years 8 months d. 1 year 10 months e. 3 years
Duo Corporation is evaluating a project with the following cash flows: Year Cash Flow 0 -$ 28,400 1 10,600 2345 13,300 15,200 S 12,300 -8,800 The company uses an interest rate of 8 percent on all of its projects. a. Calculate the MIRR of the project using the discounting approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the MIRR of the project using the reinvestment approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. Calculate the MIRR of the project using the combination approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Discounting approach MIRR b. Reinvestment approach MIRR c. Combination approach MIRR % % %
Find the Payback period for Oman Lighting company if the initial investment is 12000 OMR and the cash Inflows are as follows: Year 1 =3250 OMR; Year 2 =3500 OMR; Year 3=3750 OMR and Year 4=4000 OMR. Select one: O a. 1 year 10 months O b. 3 years 4 months O c. 2 years 8 months O d. 3 years O e. None of the options
Find the profitability index for Oman Clothing Company if the initial investment is 700 OMR and the cash Inflows are as follows: Year 1 =350 OMR; Year 2 =400 OMR; Year 3=450 OMR and Year 4=500 OMR. Use discount rate as 10%. Select one: a. 1.15 b. 1.41 c. None of the options d. 1.89 e. 2.89

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