34. The annual income from the mine is P100,000 and the life of the mine is 25 year: Find the price that an investor is willing to pa if he considers that money is worth 5% and he is to accumulate a sinking fund at 7% in order to replace the capital he invested?

Q: You have been offered to invest in a business project. The project would require you to make an…

A: Net present value (NPV): The net present value is a technique used for making the investment…

Q: 30. Capital outlay. Chrome Solutions determines that the rate of revenue coming in from a new…

A: Annuity means finite no. of payments which are same in size and made in equal intervals. Person gets…

Q: You receive £5,000 in three years' time and the cost of capital for the project is 7%. What is that…

A: Solution: Present value stands for the value calculated in today's terms.  The formula for present…

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A: NPV is also known as Net Present Value. It is a capital budgeting technique which helps in decision…

Q: You currently have $8,700 to invest. You can invest the full amount now for a period of 9 years at…

A: Final Value after 9 years = $15,000Initial Value = $8,700Number of years (n) = 9

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A: Capital budgeting is a tool for the decision-making of the project, With the help of the concept of…

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A: The modified internal rate of return (MIRR) assumes that positive cash flows are reinvested at the…

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A: DCR stands for debt coverage ratio. This ratio is used to measure the ability of a project to use…

Q: You have an opportunity to invest $102,000 now in return for $79,100 in one year and $30,200 in two…

A: The objective of this question is to calculate the Net Present Value (NPV) of an investment…

Q: Project A has a NPV of $100 and will last for 10 years. Project B has an NPV of $75 and will last…

A: Equivalent annual cost is the cost of operating and maintaining an asset annually. It is also called…

Q: An investor invests £10,000,000 in a new factory, which takes a year to build. After construction…

A: Yield of investment refers to the return earned by the project over the investment made initially…

Q: Find ROI (return of investment)

A: Return on investment is the rate of profit from the investment made. It is a type of profitability…

Q: Assume that you are valuing an infinitely lived asset that pays $350 at the end of each year. What…

A: Infinite lived asset means asset has no maturity life and we receive annual cash flow at the end of…

Q: How long will it take for an Investment of P3,500,000 to earn P1,525,250 if invested at the rate of…

A: The future value is the amount that will be received at the end of a certain period. In simple…

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A: Average net profit :— It is calculated by dividing sum of net profits by number of periods.…

Q: Could someone figure this out and show me the steps?

A: NPV is a capital budgeting technique that is used to evaluate the viability of a project. The NPV…

Q: Malema Pty Ltd, a furniture manufacturer, has been offered an opportunity t3 accept a project that…

A: Cash Flow for year 1 = cf1 = 7000Cash Flow for year 2 = cf2 = 8000Cash Flow for year 3 = cf3 =…

Q: comma 900 in one year. If your cost of capital is 7.6 %, what is the NPV of this investment?

A: The net present value calculation aids in determining whether an investment will yield a higher…

Q: Malema Pty Ltd, a furniture manufacturer, has been offered an opportunity to accept a project that…

A: Interest Rate = r = 12%Cash Flow for Year 1 = cf1 = 7000Cash Flow for Year 2 = cf2 = 8000Cash Flow…

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A: In accounting the net present value is derived by deducting the present value of associated cash…

Q: An investment of $875,000 in equipment will produce annual profits of $175,000 for eight years. The…

A: Cost = $ 875000 Annual cash inflow = $ 175000 Salvage value = $ 40000 Project life = 8 Years

Q: Severn plc is assessing a new project to expand its business. It will require an investment of £20m…

A: Investment = £20,000,000 Annual cash inflow for first 5 Years = £1,750,000 Annual cash inflow after…

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A: Equivalent annual cost refers to the cost incurred for owning, operating, and the maintenance of an…

Q: What does the IRR rule say about whether the investment should be undertaken? What about the NPV…

A: Capital budgeting is a fundamental financial procedure in which organizations evaluate and select…

Q: You have an opportunity to invest $106,000 now in return for $80,100 in one yoar and $30.400 in two…

A:

Q: Harry Dukee has been presented with an investment opportunity which will yield end of year cash…

A: Net Present Value: It represents the absolute profitability of a project or an investment in…

Q: Stan Co. is considering a five-year investment that costs P100,000.  The investment will produce…

A: Calculations are as follows

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A: Accounting Rate of Return (ARR) = Average Net Profit / Average Investment

Q: A tract of land is expected to net $45 per acre from now into the foreseeable future. Assume that…

A: Initial investment is $250000 A Tract of land is expected to be $45 r(real)=0.06 i(real)=0.05 NP=30…

Q: (a) You want to set-up a scholarship fund that will support $20000/year for an infinite period. The…

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

Q: Advice Jane which project should be invested on and why?

A: Information Provided: Discount rate = 7%

Q: If you invest $73,300 in a project which yields an annual return of $13,500, how many years will it…

A: Given, Amount of investment is $73,300 Annual return $13,500. Rate of interest is 4.5%.

Q: 6. Assume the annual effective interest rate is i = 2%. An individual wants to invest a capital of…

A: Present value is an estimate of the present value of future cash values ​​that may be received at a…

Q: NUBD Co. is considering a five-year investment that costs P100,000. The investment will produce cash…

A: Cost of investment = P 100,000 Cash inflow in year 1 and 2 = P 25000 Cash inflow in year 3 to 5 = P…

Q: 1. You have an opportunity to invest $50,000 now in return for $60,000 in one year. If your cost of…

A: Investment amount = $50.000Cash flow in year 1 = $60,000Cost of capital = 8%

Q: You have an opportunity to invest $ 108 000 now in return for $ 79500 in one year and $ 30 comma 300…

A: The objective of this question is to calculate the Net Present Value (NPV) of an investment…

Q: AAAs have option to invest in Company's BBBS newly constructed Condo. The WACC is 6%. The required…

A: Net present value is the difference between the present value of cash flow and initial investment.

Q: Imagine you are considering buying a gold deposit. It will cost $1 million per year to construct a…

A: Part (a) First calculate the present value of the total cost PV of total cost = Price paid for gold…

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A: Return on Investment: The net profit or return earned on the initial investment is known as the…

Q: Suppose Drake Pile Co. is considering a project to invest in a racehorse over the next 12 years.…

A: Here,Cost of Project (PV) is $130,000Revenue in Year 12 (FV) is $431,500Time Period (n) is 12…

Q: Assume that you are valuing an infinitely lived asset that pays $350 at the end of each year. What…

A: In the given question we need to compute the present value of perpetuity because infinitely lived…

Q: The annual maintenance costs of a tunnel, which is considered to have an infinite life, are worth…

A: Capitalized cost can be defined as that cost which is regularly added to the original cost of a…

Q: Imagine you are going to have a project to sell a Massive Machinary you owned. You have invested THB…

A: The question is based on the concept of Cost Accounting. Net present value is the difference between…

Q: Bills Corporation is contemplating on a project. It has an initial investment of Php5 Billion and…

A: Initial investment = Php5 billion Cash flow after 5 years = Php7 billion Cost of capital (r) = 0.105…

Q: You are considering investing in a project which will last four years. You will invest £500,000 at…

A: Net present value is the difference between present value of cash inflows and outflows.

Q: Company ABC invests in a long-term project that will start generating cash flows 10 years from now…

A: Annual cash flow (C) = $22,000,000Growth rate (g) = 0.02Interest rate (r) = 0.05Initial cost (I) =…