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25% 14,850 3,900 0(2,677,437.00) (2,677,437.00) 569,400.00 569,400.00 569,400.00 569,400.00 569,400.00 569,400.00 (996,896.17) 7.44% cal 01 772,200.00 772,200.00 772,200.00 772,200.00 772,200.00 772,200.00 (202,800.00) (202,800.00) (202,800.00) (202,800.00) (202,800.00) (202,800.00) NPV nue 1 nses 6,000,000 e 52 weeks in a year IRR O-23456

25% 14,850 3,900 0(2,677,437.00) (2,677,437.00) 569,400.00 569,400.00 569,400.00 569,400.00 569,400.00 569,400.00 (996,896.17) 7.44% cal 01 772,200.00 772,200.00 772,200.00 772,200.00 772,200.00 772,200.00 (202,800.00) (202,800.00) (202,800.00) (202,800.00) (202,800.00) (202,800.00) NPV nue 1 nses 6,000,000 e 52 weeks in a year IRR O-23456

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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A C E F Table A-1 Table A - 2 Cash Flow (2,677,437.00) 569,400.00 569,400.00 569,400.00 2 Initial Investment 2,677,437.00 25% 14,850 3,900 Year Revenue Cost 3 Cost of Capital 4 Weekly Revenue 5 Weekly Expenses 772,200.00 772,200.00 772,200.00 772,200.00 772,200.00 772,200.00 0(2,677,437.00) (202,800.00) (202,800.00) (202,800.00) (202,800.00) (202,800.00) (202,800.00) 6 7 Selling Price There are 52 weeks in a year 6,000,000 4 569,400.00 569,400.00 569,400.00 (996,896.17) 7.44% 8 9 10 NPV 11 IRR 12 13 O12
Transcribed Image Text:A C E F Table A-1 Table A - 2 Cash Flow (2,677,437.00) 569,400.00 569,400.00 569,400.00 2 Initial Investment 2,677,437.00 25% 14,850 3,900 Year Revenue Cost 3 Cost of Capital 4 Weekly Revenue 5 Weekly Expenses 772,200.00 772,200.00 772,200.00 772,200.00 772,200.00 772,200.00 0(2,677,437.00) (202,800.00) (202,800.00) (202,800.00) (202,800.00) (202,800.00) (202,800.00) 6 7 Selling Price There are 52 weeks in a year 6,000,000 4 569,400.00 569,400.00 569,400.00 (996,896.17) 7.44% 8 9 10 NPV 11 IRR 12 13 O12
Head of Evtel Kitchen Appliances Milos wants to work with a start-up specializing in smart home technologies to expand EvTel's business. He asks Tolga, a new graduate hire from the R&D department, to research start-up companies. After his research, Tolga selected BEAD Technologies to present his superiors. Help him answer the questions below so that he can understand if they should invest in BEAD Technologies. Assume all payments are made at the end of the period. 3 After an initial investment of 2677437; they will start operating in year 1 and sell the store at the end of year 6. Use the values given in Table A-1 to complete Table A-2, and answer Part 1 according to it. Part 1 What is the cash flow in the first year of the business? What is the amount of money that EvTel made over their expectation in terms of today? What is the internal rate of return that shows Evtel made a profit equal to their expectations? a 6. b
Transcribed Image Text:Head of Evtel Kitchen Appliances Milos wants to work with a start-up specializing in smart home technologies to expand EvTel's business. He asks Tolga, a new graduate hire from the R&D department, to research start-up companies. After his research, Tolga selected BEAD Technologies to present his superiors. Help him answer the questions below so that he can understand if they should invest in BEAD Technologies. Assume all payments are made at the end of the period. 3 After an initial investment of 2677437; they will start operating in year 1 and sell the store at the end of year 6. Use the values given in Table A-1 to complete Table A-2, and answer Part 1 according to it. Part 1 What is the cash flow in the first year of the business? What is the amount of money that EvTel made over their expectation in terms of today? What is the internal rate of return that shows Evtel made a profit equal to their expectations? a 6. b
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