BLEM: An investment is be made with an intial capital of PHP 933839. It is expected that there will be an annual revenue for this investment of PHP 386337; while it also entitled to an annual operationa nd mantenace cost of PHP 38075 and annual taxes of PHP 9504. Its salvage value at the end of its useful life (10 years) is PHP 15354. This investment has a MARR of 18% (same as interest rate). QUESTION: Determine the payba

Q: A dam will have a first cost of P250,000,000, an annual maintenance cost of P1,250,000 and minor…

A: A capitalized cost seems to be a cost incurred as a consequence of the acquisition of a fixed asset…

Q: Required: a. Determine the discounted rate of return.

A: Formula: Discount rate= Lower Rate +Lower NPV×Higher Rate-Lower RateLower NPV-Higher NPV

Q: Calculate the capitalized cost of the GenSet with an initial cost of Php. 500,000.00, maintenance…

A: Given, Initial cost = 500,000 Maintenance cost per annum = 20,000 Interest rate = 12%

Q: A fixed capital investment of P12M is required for a production plant and an estimated working…

A: RATE OF RETURN ON INVESTMENT  Rate of Return on Total Investment is one of Important Financial ratio…

Q: ssuming that capital requirement for new machinery is P135,000; net of sale of present equipment –…

A: Payback period is no. of years required to recover the amount invested.

Q: How do corporations go public and continue to grow

A: Private corporations go public because due to increasing operations they need to fulfill liquidity…

Q: 2. Company A contemplates on taking a project which costs Php5 M. The equipment to be purchased will…

A: Hi, since you have posted multiple questions, we will answer the first one, as per authoring…

Q: What is the capital recovery (CR) cost of the project? Assume Cash Flow First cost, S Annual cost, S…

A: In this we need to calculate the capital recovery cost of project.

Q: A project capitalized for ₱150,000 invested in depreciable assets will earn a uniform, annual income…

A: Initial Cost = 150,000 Annual Cash Flow = Annual Income - Operations and Maintenance Cost -…

Q: uipment that will increase revenue by P94,500 a year requires an investment of P430,000. It is…

A: Future value of any investment gives the compound interest and principal. Gives decision making in…

Q: A potential investment has a cost of $395,000 and a useful life of 6 years. Annual cash sales from…

A: Decisions made regarding the capital budget have the potential to affect the financial performance…

Q: Project A requires an original investment of $54,700. The project will yield cash flows of $15,200…

A: The objective of the question is to calculate the net present value (NPV) of Project A over a 4-year…

Q: Project A requires an original investment of $57,700. The project will yield cash flows of $16,600…

A: Calculation of Net Present Value of Project A  Net Present value = Present Value of cash inflows -…

Q: An investment is be made with an initial capital of PHP 853512. It is expected that there will be an…

A: Payback period Payback period is a capital budgeting tool to decide on the best investment…

Q: The initial investment of a project is OMR 50,000. The profit after interest and tax (Cash inflows)…

A: Option a is correct.

Q: 3. A firm can purchase a fixed asset for a Php520,000 and will have installation cost of Php20,000.…

A: Purchase cost = Php520,000 Installation cost = Php20,000 Total initial cost = Php540,000 (i.e.…

Q: The profitability index of a certain project is 1.2 with an investment of P 56,600. Cost of capital…

A: The profitability index (PI) is a financial tool to measure the profitability of a proposed…

Q: The initial investment cost of a project is 81.500 TL and its annual income is 20.000 TL / year. If…

A: The discounted payback period is the time period in which the project will pay back its initial…

Q: A project is estimated to cost P120T, last 8 years & have a salvage value of P20T. The annual gross…

A: Here, Initial investment = P 120,000 Time period = 8 years Salvage value = P 20,000 Annual income =…

Q: The data required for a new investment are calculated as follows: Cost of the investment: 10.000.000…

A: Depreciation = Cost of investment / Economic life

Q: Project A requires an original investment of $64,000. The project will yield cash flows of $19,200…

A: Present Value is the Value of one Dollar as of today which will be received in Future. For the…

Q: Find the present value of an investment that will have a future value of Php350,000 if it is…

A: Present Value: It is the current value of cash flows or an amount of money that is expected in the…

Q: proposed processing plant requires a fixed-capital investment of PhP8,832,292 and a working capital…

A:

Q: particular stock does not pay dividends and is currently priced at $12. Suppose that the quoted…

A: The arbitrage is risk free investment strategy that is available due to the mispricing of the stock…

Q: The initial investment of a project is OMR 30,000. The profit after interest and tax (Cash inflows)…

A: NPV is the sum of present value less initial investment

Q: Maria Corporation Limited(MCL) is interested to invest in a project. The initial cost of the project…

A: Part 1: The computation of operating cash flows of the project by computing net income, adding…

Q: The future value of an investment is Php5,500,000 while its present value is Php3,500,000. It has a…

A: Present value(PV) is Php3,500,000 Future value(FV) is 3,500,000 Time Period is 13 years Compounding…

Q: The future value of an investment is Php5,500,000 while its present value is Php3,500,000. It has a…

A: future value of an investment is Php5,500,000 present value is Php3,500,000 Time period of 13 years…

Q: Project A requires an original investment of $66,800. The project will yield cash flows of $19,800…

A: Net Present Value: The difference between the value of cash today and the worth of cash at a future…

Q: Project A requires an original investment of $53,400. The project will yield cash flows of $15,400…

A: The difference between the present value of cash inflows and present value of cash outflows is net…

Q: What is the ARR of a project investment of 1 million pesos of machinery with a life of 10 years and…

A: Accounting Rate of Return (ARR) = Average Net Profit / Average Investment

Q: The salvage value of an asset is RM75,000. The annual cash flow is RM 10,500, and the networking…

A: Terminal cash flow of the asset is the cash flow that includes the net amount earned by the firm…

Q: The future value of an investment is Php5,500,000 while its present value is Php3,500,000. It has a…

A: Given: Future Value “FV” = Php5,500,000 Present Value “PV” = Php3,500,000 Number of years = 13…

Q: a) The Home Design Enterprises is considering a new project which will require RM325,000 for new…

A: The question is related to Capital Budgeting. The initial investment is the cash outflow or cash…

Q: A startup company has a fixed capital investment of Ph 500,000 and minimum working capital. The…

A: return on investment = Average earning/Initial investment Payback period is the initial outflow…

Q: This question is based on the following in formation: An investment is Machinery costing P 250,000…

A: Annual tax shield will the tax saved on depreciation of assets. Annual Depreciation =(Cost of…