.Calculate the NPV method and discount rate of 12%

Q: A machine costs £15,000 and its useful economic life is 5 years. After 5 years, the machine’s scrap…

A: GIVEN, cost = 15000 n=5  net cash inflow = 5000 machine scrap = 3000

Q: A special purpose machine toolset costs $20,000. The toolset will be financed through a bank loan of…

A: The question is based on the calculation for benefit of buying a special purpose machine , which is…

Q: Ive ye is the payback period for - If their acceptance peric

A: The Payback period is the amount of time needed to earn back the cost of an investment. This method…

Q: What is the minimum annual revenue to make this project profitable

A: Given Cost = 379,968 annual operating cost = 167,365 project life = 10 years salvage cost = 12,887…

Q: A new machine requires an investment of $630,000 and will generate $100,000 in cash inflows for 7…

A: The Net Present value iscalculated with the help of following formula Net Present Value = Present…

Q: ABC, Inc. is considering a project that requires €21,000 in net working capital and €121,000 in…

A: Here, Initial Investment is €121,000 Change in Working Capital is €21,000 Operating Cash Flow is…

Q: A company is considering a project. The project requires new machinery at a cost of £140,000 which…

A: The accounting rate of return is a capital budgeting ratio that is used to find the profitability of…

Q: A 1000ft (one lane) asphalt road costs P3.8M. It requires no upkeep until the end of 3 years when…

A: Time Period 20 Initial Cost P 38,00,000.00 Repair Cost at the end of 3rd year      P 80,000.00…

Q: A machine was purchased with an amount of P375,000.00 and a modification cost of P100,000.00 after…

A: Capitalization costs include: Installation costs Labor charges Transportation costs Interest…

Q: A new molding machine is expected to produce operating cash flows of $109,000 per year for 4 years.…

A: Net present value refers to the technique of capital budgeting used to evaluate the profitability…

Q: Company ABC is introducing a new product to the market that is expected to bring $50k annual revenue…

A: A capital budgeting decision is a one-time investment that is expected to pay off over some time.…

Q: Y Company is considering purchasing a machine for $15,000. The machine will generate a net after-tax…

A: The payback period is one of the capital budgeting technique which use to evaluate the project based…

Q: Question 5. Volatility and Option Hedging                  Today, is January 4, 2016. IBM common…

A: To Find: Historic Volatility

Q: Bassinger Company plans to buy a new machine for $60,000 that will have an estimated useful life of…

A: The profitability index represents the relationship between the costs and benefits of a project. It…

Q: A) Calculate the total intial outlay of the project. B) Determine the annual cash flow for the…

A: Total Initial Outlay: It refers to the initial investment required to begin a project. These include…

Q: New equipment costs $847,000 and is expected to last for five years with the salvage value of 10% of…

A: The formula for the calculation of PVCCATS is as follows: PVCCATS=CdTd+k×1+0.5k1+k-SdTd+k×11+kn C is…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.