1 Jonkin plc are considering a project that is susceptible to risk. An ini investment of £1,300,000 will be followed by six years with the following 'm likely' cash flows (there is no inflation or tax): Annual Sales (volume of 300,000 units multiplied by estimated sales price of £4) Annual Costs Labour Materials Other £ 750,000 100,000 50,000 £ 1,200,000 (900,000) 300,000 The initial investment of £1,300,000 in machinery and equipment has estimated residual value of £400,000 at the end of the six-year life of the proj The company calculates depreciation on a straight-line basis. The cost of cap is 8%. (a) Calculate the net present value of the project.

1 Jonkin plc are considering a project that is susceptible to risk. An ini investment of £1,300,000 will be followed by six years with the following 'm likely' cash flows (there is no inflation or tax): Annual Sales (volume of 300,000 units multiplied by estimated sales price of £4) Annual Costs Labour Materials Other £ 750,000 100,000 50,000 £ 1,200,000 (900,000) 300,000 The initial investment of £1,300,000 in machinery and equipment has estimated residual value of £400,000 at the end of the six-year life of the proj The company calculates depreciation on a straight-line basis. The cost of cap is 8%. (a) Calculate the net present value of the project.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Can you tell me how to work out question 1 without the use of excel ? Thank you in ad
Can you help me work out question 1(a) please without having to use excel? Thank you in adv
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