Revenues Advertisement Salaries Sale of scrape Year 1 Year 2 100000 150000 4000 5000 20000 30000 Year 3 140000 3000 30000 5000 Year 4 110000 30000 Year 5 150000 35000 2000 Initial Investment Rs.200000 required rate of return on investment is 12% Required: (i) NPV, (ii) IRR and (iii) Payback period, and (iv) Discounted Payback Period.

Q: Two equipment investments are estimated as follows:Which investment has the better discounted…

A: Firstly we shall calculate the Present value of Cash flows. Then, we shall calculate the Cumulative…

Q: Year Cash Flow (A) Cash Flow (B) 0 -$ 427,000 -$ 41,000 1 43,000 20,600 2 63,000 13,100 3 80,000…

A: a)Project A:Initial Investment: -$427,000Yearly Cash Flows:Year 1: $43,000Year 2: $63,000Year 3:…

Q: Need answer this question

A: Step 1:To find the fair value of an investment that pays a growing annual payment, we can use the…

Q: Question 2: Calculate the payback period and the NPV using a discount rate of 8% Inflow/ Outflow…

A: Payback period and NPV of the project is calculated in excel below

Q: Calculate the Payback Period using the following Information All figures are in OMR Initial…

A: The payback period is used in the case of capital budgeting decisions in order to decide whether to…

Q: Q1 project has the following costs and benefits. What is the pay Costs (CU) year 0 1 2 3-10 year…

A: The payback period is the time in which the initial cost of the project is recovered. It ignores the…

Q: Estimate the MIRR of the following project considering a 12% discount rate Year CF -1,200 1. 500 600…

A: Correct answer is option (d) 20%.

Q: Two investments have the following pattern of expected returns: Investment A Year 1 BTCF $6,000 Year…

A: Here, YearInvestment AInvestment BCash FlowCash…

Q: The business units of contractor companies carry out investment expenditures for a capital of…

A: Capital budgeting is the process of decision making used to evaluate the profitability of the…

Q: MMC Company wants to install the recycle plant that cost $80,000 with 10% cost of capital. Year 0 1…

A: The discounted payback period is used to calculate the profitability and timing of cash inflows of a…

Q: What is the fair value of an investment that pays $100 per year in year 1, grows at the rate of 3%…

A:

Q: ind the value of P for which the inflows will equal the out ffective rate first. Rate ear Outflows I…

A: Cash flow may be inflow that positive cash flow and there may be outflow that is negative cash flow…

Q: Determine the payback period for a proposed investment as follows: End of Year 1 2 3 5 Cash Flow,…

A: In this question the cash flows should be in thousands.                              Initial…

Q: For the four revenue alternatives below, use the ROR method results to answer the question below…

A: Incremental IRR rule:If incremental IRR is greater than or equal to MARR, then select project with…

Q: Discount Rate 12%         Investment Project Cash Flow Total Net Cash Flow Initial Investment  $…

A: Payback Period and NPV are both used to make decision for accepting an investment proposal but…

Q: Compute the payback period and ROI (Return on Investment) for the following…

A: Initial investment = 600,000Cash flow Year one = -120,000Cash flow Year two = -240,000Cash flow Year…

Q: Cash flow End of year                     Amount                  Appropriate required return 1…

A: The value of money today that is received to pay in some future by considering the discount rate is…

Q: Find out which investment plan will yield loss, which investment plan will yield profit, and which…

A: The future value of the cash flow is the current worth of a cash flow series at a certain rate of…

Q: Year Cash Flow (A) Cash Flow (D) $- -$ 0 348,000 51,000 1234 47,000 24,200 67,000 22,200 19,700…

A:

Q: Payback period and discounted payback period (using 5% rate of return) Initial Investment is…

A: Payback period is one of the methods of capital budgeting to evaluate the project. This shows a time…

Q: Profitability index of Proposal B Answer 1 Payback period in years and months of Proposal B Answer…

A: Profitability Index  = Present Value Cash inflow / Present Value Cash outflow

Q: PROVIDE - PRESENT VALUE, FUTURE VALUE, AND internal rate of return (IRR)

A: Present and Future Value: The current value of a cash flow that is expected to occur at some time in…

Q: For parts b. and c., round answers to three decimal places, if applicable. a. Determine the payback…

A: Requirement a:   Compute the pay-back period.

Q: Calculate the following values ​​according to the table given: net cash flow, interest 18%…

A: The question is based on the concept of calculation for net present value (NPV). NPV is calculated…

Q: Exercise (NPV) - 20 mins Project A, B and C have the following cash-flow projections: Year Project B…

A: PAYBACK PERIODPayback period is the period in which money invested in capital asset is recovered for…

Q: Basic Present Value Concepts Annual cash inflows that will arise from two competing investment…

A: Cash inflows: The amount of cash received by a company from the operating, investing, and financing…

Q: REQUIRED Use the information provided below to calculate the following: 3.1 Payback Period of…

A: Pay back Period  = Initial Cost / Annual Cashflow  Accounting Rate of Return  = Average Net Income /…

Q: ANO Ltd. is providing the following information: Annual cost of saving Useful life Salvage value…

A: When a project has a zero net present value (NPV), the projected cash inflows precisely balance the…

Q: What is the internal rate of return (IRR) of an investment that requires an initial investment of…

A: Initial investment (PV) = $14,000Future value (FV) = $19,320Number of years = 1 years

Q: An investment of GH¢10000 returns GH¢3000 at the end of years 1 and 2 and GH¢3500 at the end of…

A: IRR: IRR or Internal rate of return is the rate at which net present value of cash flows is equal to…

Q: Project 1 Years 1 2 3 Cash Flow -5000 500 2000 3000 1000 Cumulative Cash Flow -5000 -4500 -2500 500…

A: payback period is the period during which the firm recovers its initial investment. Formula: payback…

Q: 1. Compute the NPV and the IRR for each investment Round present value calculations and your final…

A: An IRR is the acronym for Internal Rate of Return through which company knows and computes the rate…

Q: Question 3 Given 10% discount rate, what is the profitability index of the investment project…

A: Profitability index (PI) is a discounted technique of capital budgeting decision. It is given by

Q: Find the Discounted Payback Period (DPP) for Oman Sofa Company if the initial investment is 12000…

A: Here, Initial Investment is OMR 12,000 Cash Inflows are as follows: Year 1 - OMR 5,000 Year 2 - OMR…

Q: calculate the period cashflow,

A: Note: The project's quarterly cash flow has been computed below. The present value and net present…

Q: Below are the NPVs of a particular investment at two discount rates: At 5%, NPV = $9,500 At 8%,…

A: IRR is the rate of return at which the net present value is 0. IRR is the minimum return a project…

Q: Year Cash Flow (A) Cash Flow (B) 0 −$ 417,000 −$ 36,000 1 48,000 19,600 2 58,000 14,100 3 75,000…

A: The payback period refers to the time it takes a project to recover its initial costs. It does not…

Q: Find the Discounted Payback Period (DPP) for Oman Sofa Company if the initial investment is 12000…

A:

Risk Analysis

Risk management is the entire walkthrough process of helping the organization manage risks or avoid them altogether. It is an in-depth study to determine the risks and uncertainties faced by the business and how these impact the objectives and outcomes of the business. Risk analysis is a procedure of risk assessment followed by the management of an organization to avoid risks that may harm the functioning and efficiency of the company.