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- Year Cash Flow $275.000 1 $35.00 2 S65,000 36 S25.000 $13500 $185.000 9-20 $245,000 Given the following cash flows and if MARR-24%? Ans xx What is the Simple Payback Period? Ans XX What is the Discounted Payback Penod? 01 7 8.What is the project's MIRR? r = 10.00% 0 Year Cash flows O a. 22.51% O b. 11.75% O c. 17.21% O d. 14.81% O e. 15.65% -$875 1 $300 2 $320 3 $340 $360What is Project A's Modified Internal Rate of Return with a WACC of 7.75%? YEAR 0 1 2 3 4 CASH FLOWS Project A -$1050 675 650 Project B -$1050 360 360 360 360
- Find the value of P for which the inflows will equal the outflows. Find the effective rate first. Rate Year Outflows 0 1 2 3 4 5 678 9 10 -P -2P -4P -8P -16P $1,530 $2,545 $3,269 $3,490 18% pycd Inflows $24,000 $30,000 $36,000 $42,000 $48,000 $54,000Match the following measurements with the terms below: Question 15 options: 12345 cash conversion efficiency ratio 12345 economic ordering quantity 12345 credit terms 12345 net working capital 12345 days of working capital 1. 5.1% 2. 47.2 days 3. 1/10, n/30 4. $200,000 5. 700 unitsPROBLEM 2-Determine the External Rate of Return, i' Discount Rate=5% Cashflow PV-Cash Outflow PV-Cash Inflow Year (P27,500) 6,000 8,000 7,000 (4,000) 9,000 5,000 4 2 1 %3D O123456
- Investment End of Year A B C 1 $ 13,000 $ 18,000 2 13,000 3 13,000 4 13,000 5 13,000 $ 13,000 6 13,000 54,000 7 13,000 8 13,000 9 13,000 10 13,000 18,000 Assuming an annual discount rate of 23 percent, find the present value of each investment. a. What is the present value of investment A at an annual discount rate of 23 percent? b. What is the present value of investment B at an annual discount rate of 23 percent? c. What is the present value of investment C at an annual discount rate of 23 percent?Investment Perlod 1 2 3 4 5 $(1,000) $100 264 A $100 $100 $100 $1,100 в (1,000) 264 264 264 264 (1,000) 1,611 1. Compute the net present value for each of the following cash flow sequences. Assume a cost of money of 10 percent. 3. Compute the payback for each of the cash flows in problem 1. If the maximum acceptable payback period is four years, which (if any) of the cash flows would be accepted as a desirable investment? 4. Assume a cost of money of 5 percent. Compute the net present values of the cash flows of problem 1. 5. Assume a cost of money of 15 percent. Compute the net present values of the cash flows of problem 1. Compare with the results obtained from problems 1 and 4. 6. The Arrow Company is considering the purchase of equipment that will return cash flows as follows: End of period Cash flows $5,000 2 3 3,000 2,000 1,000 500 5 Assume a cost of money of 10 percent. What is the maximum amount the company could pay for the machine and still be financially no worse off than if…Cash Flow -$50,000 $ 7,000 $ 4,000 $9,000 $61,000 Year 1 2 3 4 What is the internal rate of return (IRR) for this investment? 17. Using the information above, wha investment using a 10% discount rate? the NPV of this
- QUESTION 5 What single sum at t=6 is equivalent at 7% compounded annually to the following cash flow profile ? ΕΟΥ 86 3 9. Cash Flow 167 228 308 35PROBLEM 1-Benefit-Cost Analysis Which is the better alternative given 9% discount rate? Alternative A Alternative B 1000 1000 1000 1000 1000 1750 1750 1750 1750 1750 1 2 1 2 3 3,000 4,500 Equation for Incremental Analysis: Better Alternative: -- PROBLEM 2-Determine the External Rate of Return, i' Discount Rate%3D5% Cashflow PV-Cash Outflow PV-Cash Inflow Year (P27,500) 6,000 8,000 7,000 (4,000) 9,000 5,000 6. 1 2 4 3 4 2 1 %3D %3DProblem 07.037 - MIRR calculation For the net cash flow serles, find the external rate of return (EROR) using the MIRR method with an Investment rate of 16% per year and a borrowing rate of 11% per year. Year Net Cash Flow, $ 2. 4 4,000 -3.000 -4,000 3.000 -1,300 4,500 The external rate of return is 20.01 O %.