Yejen Industries Ltd. invested $10,000,000 in manufacturing equipment for producing small wastebaskets. If the company uses an interest rate of 15% per year, the amount of money it will have to earn each year to recover its investment in 7 years is closest to:a. $2,403,600b. $3,530,800c. $3,941,800d. $4,256,300

The following data pertain to Sunlight Corp., whose management is planning to purchase an automated tanning equipment.   Economic life of equipment – 8 years. Disposal value after 8 years – nil. Estimated net annual cash inflows for each of the 8 years – P81,000. Time-adjusted internal rate of return – 14% Cost of capital of Sunlight Corp – 16% The table of present values of P1 received annually for 8 years has these factors: at 14% = 4.639, at 16% = 4.344 Depreciation is approximately P46,970 annually.   Find the required increase in annual cash inflows in order to have the time-adjusted rate of return approximately equal the cost of capital.

An investment of P270,119 cis needed for a Korean Mart that will produce a uniform annual revenue.This Korean Mart is operating daily (assuming 30 days a month) for 5 years and then have a salvage value of 10% of the investment. Out-of-pocket costs for operation and maintenance will be P81,014 per year. Taxes and insurance will be 4% of the first cost per year. The company expects capital to earn not less than 25% before income taxes. Using rate or return method, how much should be their minimum daily revenue for this investment to be disirable (break-even)?

Suppose a new machine costs $100,000 and will provide nominal operating income of $50,000 in each of the next four years. The machine belongs to asset class 9, which has a CCA rate of 30%. The machine is expected to be sold for $25,000 at the end of four years. The real discount rate has been estimated to be 8% per year. Expected inflation is 2.5% over the next four years. The firm's marginal tax rate is 38%. Assume there are other assets in the asset class when the machine is sold and that the half-year rule applies in year one. What is the NPV of the project? A $44,427.84 B $107,358.25 © $35,435.82 (D) $94,761.86

2. Rubbermaid Plastic Corp. invested P10,000,000 in manufacturing equipment for producing small wastebaskets. If the company uses an interest rate of 5% compounded monthly, how much money should it have to earn each year to recover the investment in 7 years? P2,003,600.87 P2,530,800.36 (a) (b) (c) (d) P1,735,721.38 Over P3,000,000

Camellia Engineering Ltd is a manufacturer of high pressure steam valves andsteam traps. Its initial investment on equipment was $50,000 and its annualoperating costs were $20,000. The revenues generated from these products were$45,000 per year. The used equipment was salvaged for $ 4,000 at the end of 5years. The minimum attractive rate of return of the company is 15% per year. a.Calculate the internal rate of return (IRR) that the company earned on theproducts. Justify your answer.b. Compute the discounted payback period for the above investment at MARRof 15% per year.

What is the internal rate of return (IRR) on an industrial building investment originally purchased for $3,500,000, seven years ago which has an annual net income of $250,000 each year and can be sold now for $4,000,000?

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The company buys an asset that costs $11,200 and returns net cash flow of $160 per month for 3 years, followed by $270 per month for 3 additional years. The company financing rate is 10.9% compounded monthly. Find the asset's annualized internal rate of return and net present value. O The IRR and NPV equal 16.69% and $1,860.86 O The IRR and NPV equal 15.69% and $1,960.86 O The IRR and NPV equal 17.69% and $2,060.86 O The IRR and NPV equal 19.69% and $2,160.86

HydroKlean LLC, an environmental soil cleaning company, borrowed $3.5 million to finance startup costs for a site reclamation project. How much must the company receive each year in revenue to earn a rate of return of 25% per year for the 5-year project period?