Kabab Co. is considering a $280,000 investment, which will provide net returns of $100,000, $160,000, and $230,000 in the second, third, and fourth years, respectively. What is the payback period? Round up to the next month Use the following table: Year Cash Outflow Cash Inflow A Net Cash Flow Cumulative Cash Flow
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- Your company is planning to purchase a new log splitter for is lawn and garden business. The new splitter has an initial investment of $180,000. It is expected to generate $25,000 of annual cash flows, provide incremental cash revenues of $150,000, and incur incremental cash expenses of $100,000 annually. What is the payback period and accounting rate of return (ARR)?Kabab Co. is considering a $240,000 investment, which will provide net returns of $110,000, $160,000, and $220,000 in the second, third, and fourth years, respectively. What is the payback period? Round up to the next month Use the following table: Year Cash Outflow Cash Inflow Net Cash Flow Cumulative Cash FlowKabab Co. is considering a $240,000 investment, which will provide net returns of $110,000, $160,000, and $220,000 in the second, third, and fourth years, respectively. What is the payback period? Round up to the next month Use the following table: Cumulative Cash Cash Outflow Çash Inflow Net Cash Year Flow Flow 2 years and 10 months Ob. 2 years and 9 months 2 years and 11 months Od. 2 years and 8 months
- A cash flow sequence has a receipt of $20,000 today, followed by a disbursement of $17,000 at the end of this year and again next year, and then a receipt of $13,100 three years from now. The MARR is 6 percent. a. What is the ERR for this set of cash flows? b. What is the approximate ERR for this set of cash flows? c. Would a project with these cash flows be a good investment? a. The ERR is%. (Round to two decimal places as needed.)Using Microsoft Excel, create an investment cash-flow diagram that will have a present worth ofzero using MARR = 14.5%. The study period needs to be exactly 8 years and each year shouldhave at least one unique cash flow that is different from the cash flows over the other years. Youranswer should contain a table showing the cash flows for each year and a graphical representationof the cash flows (cash-flow diagram)A project has an initial investment of $1,506. The cash inflows in the next four years are $392, $459, $555, and $555. If the discount rate is 12%, calculate its profitability index..
- A project has an initial cost of $7,900 and cash inflows of $2,100, $3,140, $3,800, and $4,500 per year over the next four years, respectively. What is the payback period? I need the steps on a financial calculator the ba IIImagineering, Inc., is considering an investment in CAD-CAM compatible design software with the cash flow profile shown in the table below. Imagineering’s MARR is 21 %/year. End of Year Cash Flow (M$) 0 -$12 1 -$1 2 $5 3 $2 4 $5 5 $5 6 $2 7 $5 What is the future worth of this investment? $Carry all interim calculations to 5 decimal places and then round your final answer to 2 decimal places (in millions of dollars). The tolerance is ±0.2.Assuming you are facing making a decision on a large capital investment proposal. the capital investment amount is $640,000, Estimated the study period is 8 years. The annual revenue at the end of each year is $180,000, and the estimated annual year-end expense is $42000starting in year one, Assuming a market value at the end year is $ 20,000, and the benchmark rate is 10%, Find the cash flow chart, the NPV, the dynamic payback period, and the IRR of this project.
- Justine Global Info Tech records the following cash flows at the end of each year for a project. If the firm's discount rate is 11%, what is the PRESENT VALUE of the project? Year Cash Flow P794,633.00 2 P542,149.00 P836,200.00 4 P716,080.00 5 P520,354.00You are considering a $7,000 investment. The table shows the possible outcomes in cash flow next year. What is the standard deviation of the returns? Round your answer to the nearest tenth. table 1.4% 2.8% 6.0% 8.1% Probability Possible Cash Flow $925 $680 S485 0.1 0.2 0.4Regarding the proposed investments, XYZ INC. gathers the following data: a cash cost of 13,000, net annual cash flows of 45,000, and a present value factor of 5.40 rounded for cash inflows over a ten-year period. Find out all the relevant details that will be important when choosing an investment. Please let me know whether you think our firm should receive an investment based on the following information: