A broadcasting corporation was formed duly approved by the Securities and Exchange Commission has a working capital of P20M and a fixed capital or P80M. Annual depreciation amounts to P5M and the expected annual profit is P16M. Compute the payout period in years. Select the correct response: 2.51 5.11 3.81 4.33

A bank is in the processing of rescheduling a $10 million loan paying 14% interest. If liquidated, it expects to receive $8.4 million. The rescheduling terms are as follows: Amount       $10,000,000 in year 0     New maturity in years   5       Interest rate     8%       Principal payments in millions   $5,000,000 each in years 4 and 5 Upfront-fee     1.00%       Cost of capital after rescheduling 14.00%                       Should the bank reschedule the loan?           A Yes, reschedule the loan because the NPV is greater than liquidation value   B No, do not reschedule the loan because the liquidation value is lower than the NPV   C Reschedule the loan only if the cost of capital after rescheduling is 12%       D Reschedule the loan only if the cost of capital after rescheduling is 15%

Given the Given, solution and cash flow diagram. Factory equipment has an initial cost of P200,000. Its salvage value after 10 years is P20,000. AS a percentage of initial cost, what is the straight-line depreciation rate of the equipment? A. 8% B. 6% C. 9% D. 5%

1. The O & M cost of an equipment is given in the table below. Determine the EUAC of this equipment in year 6. Assume a MARR of 8%. Year 1 2 3 5 6 O&M Cost $8,000 $7,500 $6,000 $5,500 $4,500 $8,000 $9,149.87 $8,188.45 $7,407.20 ○ $7168.52

12.5 A chemical plant is considering installing a new water purification system that costs $21 500. The expected service life of the system is 10 years and the salvage value is computed using the declining-balance method with a depreciation rate of 20 percent. The operating and maintenance costs are esti- mated to be $5 per hour of operation. The expected savings are $10 per operat- ing hour. a. Find the annual worth of the new water purification system if the current operating hours are 1500 per year, on average. The MARR is 10 percent. b. What is the break-even level of operating hours? Construct a graph showing the annual worth for various levels of operating hours. the answers should be a) =4145.74 b)=671 need the solutions please to be clear to understand

Hampton Industries had $46,000 in cash at year-end 2018 and $15,000 in cash at year-end 2019. The firm invested in property, plant, and equipment totaling $190,000 - the majority having a useful life greater than 20 years and falling under the alternative depreciation system. Cash flow from financing activities totaled +$150,000. Round your answers to the nearest dollar, if necessary. a. What was the cash fnow from operating activities? Cash outfiow, if any, should be indicated by a minus sign. $4 b. If accruals Increased by $20,000, receivables and inventories increased by $110,000, and depreciation and amortization totaled $29,000, what was the firm's net income?

A man invests in a project that requires a fixed capital of P 2.5M with no salvage, and life of 12 years. During its life an estimated maintenance cost of P280, 000 will be spent each year. Taxes and insurance will be 5% of the first cost. The project will yield a uniform annual revenue of P 1M. The company expects to earn 20% before income taxes. Compute the pay out period.

eBook Net Present Value Method—Annuity Take a Load Off Hotels is considering the construction of a new hotel for $12,000,000. The expected life of the hotel is 6 years with no residual value. The hotel is expected to earn revenues of $12,400,000 per year. Total expenses, including straight-line depreciation, are expected to be $10,000,000 per year. Take a Load Off's management has set a minimum acceptable rate of return of 12%. a.  Determine the equal annual net cash flows from operating the hotel.$fill in the blank 1 b.  Calculate the net present value of the new hotel, using the present value factor of an annuity of $1 table below. If required, round to the nearest dollar. If the net present value is negative, enter the amount using a minus sign. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791…

An industrial plant bought a generator set for P90,000. Other expenses including installation amounted to P10,000. The generator set is to have a life of 17 years with a salvage value at the end of life of P5,000. Determine the depreciation charge during the 13th year and the book value at the end of 13 years by the 5. (c) sinking fund method if interest rate is 5 percent compounded annually, and (d) SYD method. 2

A company is considering purchasing either machine A or B, given that MARR is 10%, and the company projected sales is 40,000 units. Machine A Machine B $90,000 $39,000 $1100 +.02xunits $600 +0.03xunits Initial cost $70,000 $40,000 $1000+0.03xunit $500+0.05xunit 8 years $15,000 Annual revenues Annual Operation cost Annual Maintenance cost 6 years $10,000 Life span Salvage value Draw the cash fiow diagram for each machine. a. b. Compute ERR for each machine, based on computed ERRS, which machine is to be selected7 Explain the difference between the IRR & ERR methods as explained in the lecture.