1. If you have the following information about ice-cream manufacturing unit Year Net Discount rate Returns 10% 2500 1. 700 0.909 -1000 0.826 3. 1450 0.751 1200 0.683 1700 0.621 6. 1350 0.564 7. -750 0.513 450 0.467 6. 1300 0.424 10 900 0.386 Calculate a) Discounted Payback period b) IRR and if the hurdle rate 35%, shall we accept the project or not ? Why? ) NPV

1. If you have the following information about ice-cream manufacturing unit Year Net Discount rate Returns 10% 2500 1. 700 0.909 -1000 0.826 3. 1450 0.751 1200 0.683 1700 0.621 6. 1350 0.564 7. -750 0.513 450 0.467 6. 1300 0.424 10 900 0.386 Calculate a) Discounted Payback period b) IRR and if the hurdle rate 35%, shall we accept the project or not ? Why? ) NPV

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The early payment discount being considered in change 3 is “3/20 net 90”. Calculate the effective annualised cost of the discountIf Sphinx can borrow funds in the short-term money markets at 20%, should the trade discount be taken by Sphinx?
V2
net present value? irr factor?
Determine the present worth in year 0 of the following cost. Interest rate is 10% per year. Year Cost ($1000) 0 -850 1 -300 2 -400 -400 -400 -500 WN 3 4 5
20. Complete the following table: Purchase price of product Landcruiser Down payment Amount financed Number of monthly payments amount of monthly payments total of monthly payments total finance charge $83,900 $50,000 72 $618
Formulation (including factors) / calculations must be shown Answers should be given to nearest cent for $ amounts, and to 2 decimal points and 4 decimal places for any other numeric values. include the Excel formula(s) used. A. A piece of equipment costs $500 in constant dollars today. What will I expect to pay in actual dollars in 5 years at an average inflation rate f = 3.0% ? (0) B. Given i = 15% and f = 2.5%, what is i = what is if ? C. Given f=2.1% and i, 14.5%, what is i ?
Should the company accept or reject it using a discount rate of 18%
Compute the cost of not taking the following cash discounts. Note: Use a 360-day year. Do not round intermediate calculations. Input your final answers as a percent rounded to 2 decimal places. Answer is complete but not entirely correct. Cost of Lost Discount 22.11% 18.71% 40.51% 157.41% a. 2/11, net 50 b. 2/17, net 50 c. 4/15, net 50 d. 4/19, net 155
Define Selling profit.
None
omplete the following table: x Answer is complete but not entirely correct. Number of Amount of monthly Total of monthly Total finance Amount Purchase price of product Landcruiser Down financed monthly payments payments payments charge payment 538 52 x $ 36,584 X 75,900 48,000 27,900 24 68 %24 %24 Σ %24 %24