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.

Compute the annual-equivalence amount for the following cash flow series at i = 12% $1.600 S1.600 $800 SH00 S800 $500 $500 $1.000 You invest in a piece of equipment costing $50,000. The equipment will be used for two years, and it will be worth $20,000 at the end of three years. The machine will be used for 4,000 hours during the first year, 6,000 hours during the second year, and 5,000 hours during the third year. The expected savings associated with the use of the piece of equipment will be $28,000 during the first year, $40,000 during the second year, and $35,000 during the third year. Your interest rate is 12%. (a) What is the capital recovery cost? (b) What is the annual equivalent worth? (c) What is net savings generated per machine-hour?

A project has the following cash in and out flows in its first year: Income generated:          R100 000 Cost of sales                       R30 000 Depreciation                       R10 000 What would the tax payable for the first year of the project be if the tax rate is 27%?

Red Zone Corporation recently purchased a new machine for $339,0 13.20. The new equipment has a useful life of 10 years. Net cash flows will be $60,000 per year, end of year payments. What is the internal rate of return? Question 1Select one: a. 12 percent b. 16 percent c. 14 percent d. 10 percent e. 18 percent

The cash flow after taxes for two machineries A and B are given in the table below.Year wise Cash flow A B1 22000 70002 25000 50003 28000 45004 5000 280005 4500 250006 7000 22000The estimated useful life of the machines is 6 years and the discount rate is 11%. The cost of each machine is Rs60000 1. Discuss the steps of application of the concept of NPV to the given situation. Determine the NPV of Machine A . 2. Determine the NPV of the Machine B. Discuss, which machinery should be acquired and why?

The salvage value of an asset is RM75,000. The annual cash flow is RM 10,500, and the networking capital is RM4,800. If the tax rate is 28%, what is the terminal cash flow of the asset?

What will be the annual cash outflows for Mimi Inc. if it leased a milling machine for $8, 200 per year for 5 years. Assume that the new machine cost $ 42,000 and will depreciate on a straight line basis over the 5 years and that Mimi has a tax rate of 32 percent. Question 15Select one: a. - $5,576 b. $42,000 C. -$8,264 d. $33,800 e. - $2,688

The cash flows in year-1, year-2, year-3, and year-0 are $4,000, $3,000, $5,000, and - $8,000. Compute the discounted payback period if the required rate of return is 10%. Between 2-3 years 2.50-years 2.20-years None of the above а. b. с. d.

If the cost of the truck is OMR 30,000 and the annual depreciation expense OMR 2,000. How much will be the book value of the truck at the year end? a. OMR 32,000 b. OMR 30,000 c. OMR 2,000 d. OMR 28,000

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%