(6.1) Please provide step by step explnation (no working out on excel) q3- A project will require an initial outlay of $4000 and will result in a cash inflow of $4400 in 3 years' time. These are the only cash flows from the project. If the cost of capital is 6%, what is the NPV of the project? a. $151 b. $-299 c. $-321 d. $-306 Clear my choice

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A: Project's NPV = Present value of cashflows - Initial Investment

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A: Excel Spreadsheet:

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A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

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A: NPV = Present value of cash inflows - Present value of cash outflows

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A: Introduction Equivalent Annual Worth A method, of finding out the equivalent Annual cost or…

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A: Therefore, the net present value (NPV) is -$1.44.

Q: A project has the following cash flows: Year Cash Flow $70,000 0 1 -48,000 -30,000 2 a. What is the…

A: Cash Flow 0 = cf0 = $70,000Cash Flow 1 = cf1 = -$48,000Cash Flow 2 = cf2 = -$30,000

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Q: Q2. Lamar Company is considering two projects A and B with the same initial i $10,000The following…

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A: A modified rate of return is used to determine whether the project would be selected or not.

Q: pr.2

A: Step 1: Given Value for Calculation  Cash Flow for Year 0 = cf0 = $45,500Cash Flow for Year 1 = cf1…

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A: NPV is the sum of present value of future cashflow less initial investment

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A: GIVEN, INITIAL INVESTMENT= $1000 YEAR CASHFLOW 1 $770 2 $880 3 $860 R=4%

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A: Required return is 15% To Find: IRR of the project Acceptance of project

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A: In this question, we will find out the MIRR (Modified internal rate of return) here we will find out…

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A: Here, WACC = 0.11 To Find: NPV of Project A =?

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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.