Calculate NPV of both products (to 1 d.p.) assuming a discount rate of 7%
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Lipsion Ltd company is thinking about investing in one of two potential new products
for sale. The projections are as follows:
year revenue/ product s revenue/ product v
0 (150,000) outlay (150000) outlay
1 14000 15000
2 24000 25333
3 44000 52000
4 84000 63333 Calculate NPV of both products (to 1 d.p.) assuming a discount rate of 7%
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- Lipsion Ltd company is thinking about investing in one of two potential new productsfor sale. The projections are as follows: year revenue/ product s revenue/ product v0 (150,000) outlay (150000) outlay1 14000 150002 24000 253333 44000 520004 84000 63333 Calculate NPV of both products (to 1 d.p.) assuming a discount rate of 7%. Then decide which product should be selected and why ?A company is thinking in investing in one of two potential new products for sale. The projections are as follows: year Revenue/cost £ (Product S) Revenue/cost £ (Product V) 0 (150,000) outlay (150,000) outlay 1 14000 15000 2 24000 25333 3 44000 52000 4 84000 63333 a) Calculate the payback period for both products in years and months, not as a decimal. Please present answer to nearest month.b) Calculate NPV of both products (to 1 d.p.) assuming a discount rate of 7%.c) Which product should be chosen and why?d) Calculate the IRR for Product V only using 1% and 17% to 2 d.p.e) Outline the advantages and disadvantages of the IRR and payback using appropriate academic sources.Find the profitability index for Oman Air conditioner Company if the initial investment is 4000 OMR and the cash Inflows are as follows: Year 1 =1350 OMR; Year 2 =1400 OMR; Year 3=1450 OMR and Year 4=1500 OMR. Use discount rate as 5%. Select one: O a. 1.48 O b. None of the options O c. 1.69 O d. 1.83 Oe. 1.26
- A company is thinking in investing in one of two potential new products for sale. The projections are as follows: year Revenue/cost £ (Product S) Revenue/cost £ (Product V) 0 (150,000) outlay (150,000) outlay 1 14000 15000 2 24000 25333 3 44000 52000 4 84000 63333 a) Calculate the IRR for Product V only using 1% and 17% to 2 d.p.b) Outline the advantages and disadvantages of the IRR and payback using appropriate academic sources.Find the profitability index for Oman Air conditioner Company if the initial investment is 4000 OMR and the cash Inflows are as follows: Year 1=1350 OMR; Year 2 =1400 OMR; Year 3-1450 OMR and Year 4=1500 OMR. Use discount rate as 5%. Select one:Find the profitability index for Oman Air conditioner Company if the initial investment is 4000 OMR and the cash Inflows are as follows: Year 1 =1350 OMR; Year 2 =1400 OMR; Year 3=1450 OMR and Year 4=1500 OMR. Use discount rate as 5%. Select one: a. 1.69 b. 1.48 c. 1.26 d. 1.83 e. None of the options Find the Net Present Value (NPV) for Oman Computer company if the initial investment is 5000 OMR and the cash Inflows are as follows: Year 1 =1250 OMR; Year 2 =1500 OMR; Year 3=1750 OMR and Year 4=2000 OMR. Use discount rate as 3%. Select one: a. 1005.94 OMR b. 1574.27 OMR c. 2344.92 OMR d. None of the options e. 2070.76 OMR
- Find the Discounted Payback Period (DPP) for Oman Sofa Company if the initial investment is 12000 OMR and the cash Inflows are as follows: Year 1 =5000 OMR; Year 2 =4000 OMR; Year 3=3000 OMR and Year 4=5000 OMR. Use discount rate as 15%. Select one: a. 3.4 Years b. None c. 3.9 Years d. 2.3 Years e. 4.2 YearsFind the Discounted Payback Period (DPP) for Oman Sofa Company if the initial investment is 12000 OMR and the cash Inflows are as follows: Year 1 =5000 OMR; Year 2 =4000 OMR; Year 3=3000 OMR and Year 4=5000 OMR. Use discount rate as 15%. Select one: O a. 3.92 Years O b. 2.32 Years O c. 4.20 Years O d. None of the options O e. 3.40 YearsFind the Discounted Payback Period (DPP) for Oman Sofa Company if the initial investment is 12000 OMR and the cash Inflows are as follows: Year 1 =5000 OMR; Year 2 =4000 OMR; Year 3=3000 OMR and Year 4=5000 OMR. Use discount rate as 15%. Select one: a. 3.40 Years b. 2.32 Years c. 3.92 Years d. 4.20 Years e. None of the options
- ABM Enterprise would like to evaluate/analyze an investment proposal. Given the following: Investment amount - 450,000 (2022) Dividends / Revenue stream - 100,000 for the first year and an interval of 5,000 for the succeeding years Discount rate - 14% a. NPV for the perio 2023 through 2029; b. Total NPV using manual computation; c. Total NPV using the Excel function; and d. IRR rate.music studio predicts its future yearly net income (loss) to be as follows: Year 1: - $120Year 2: + $20Year 3: + $90Year 4: - $10Year 5: + $30Year 6: + $30Year 7: + $30Year 8: + $40 What is the NPV of the company, considering a discount rate of 10%?A company is thinking of investing in one of two potential new products for sale. The projections are as follows: Year Revenue/cost £ (Product A) Revenue/cost £ (Product B)0 (150,000) outlay (150,000) outlay 1 24,000 12,0002 24,000 25,3333 44,000 52,0004 84,000 63,333 a) Calculate decimal. Please present answer to nearest half a month.