A machine costs rs. 22,000 and it's salvage valueafter its useful life of 5 years is rs. 4,000. Earningsfor different years excluding depreciation cost are -earnings in rs2,0006,0008,00012,000Year1.23.4.514,000What is discounted cash flow of return?

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Answered: A machine costs rs. 22,000 and it's…

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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Myca Corporation has a project with the following cash flows. What is the value of the cash flows today assuming an annual interest rate of 10.6 percent? Year Cash Flow 1 $ 1,940 2 2,480 3 2,850 4 2,860
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This question is based on the following in formation: An investment is Machinery costing P 250,000 with a 4-year life and no salvage value is expected to produce the following net income after taxes of 30%: End of year 1 P 17,000 2 22,000 3 25,000 4 26,000 How much is the annual tax shield?How much is the annual tax shield?A. P 17,580B. P 17,850C. P 18,570D. P 18,750What is the ROI (using the cash income)? A. 6.3%B. 9%C. 31.3%D. 34%

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A machine costs rs. 22,000 and it's salvage value after its useful life of 5 years is rs. 4,000. Earnings for different years excluding depreciation cost are - Year earnings in rs 2,000 6,000 8,000 12,000 14,000 What is discounted cash flow of return? 1. 3. 4.