A hydropower plant that has been recently commissioned is expected to earn a revenue of $75,000 from sales of electricity in five years. What is the present worth of this revenue at 10% discount rate? O $37,500 O 42568 O S75000 O $112.500

Q: Suppose that an income producing property is expected to yield cash flows for the owner of $10,000…

A: Present value is the current value of a future sum of money discounted using a specified rate of…

Q: Revenue from a project is expected to be $7000 per year in real terms (i.e. an identical project…

A: Real Value (P) = $7,000Inflation rate (r) = 2.4% or 0.024Number of years (n) = 8

Q: Expenses for water treatment plant are expected to be $220,000 now, $110,000 in year one, and…

A: Annualised cost is cost of current year and interest cost of perpetual cost.

Q: A piece of equipment has a first cost of $300,000. The company expects to be able to sell it in 9…

A: Book Value of equipment: The value of an asset in accordance with its balance sheet account balance…

Q: How much should you pay now for (600)-4 dollars guaranteed per year for (9) years starting from next…

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

Q: The Jones Lumber Co project is a 10-y project with annual cash flows given by (0.7803 \times Sales -…

A: NPV is the most used capital budgeting method and is the financial break even point and NPV is zero…

Q: An investment costing $10,000 today promises to repay investors $6,000 per annum for the next two…

A: If NPV of project is positive, Project must be accepted. If NPV of project is negative, Project must…

Q: The IE Department is considering to buy a printing machine that is expected to be obsolete in 5…

A: If an individual or organization wants to purchase a machine first they need to ascertain the future…

Q: ve purchased a machine worth P1,564,748.00. And it needs maintenance at the end of every 6 months…

A: Present value of the money can be found by the interest rate and period given by using the formula.

Q: Consider a property that is expected to produce a constant net operating ind year in perpetuity. An…

A: Future Value is calculated by FV function in excel, where PV is current price, NPER is number of…

Q: What would you pay for an investment that pays you $5000000 after fifty years? Assume that the…

A: Present Value  = Future Value /( 1 + r)n Where, r = periodic interest rate = 8% ( assuming 8%…

Q: A project generates same amount of revenue annually for 5 years, then its value is OMR, If the net…

A: The present value method is used to evaluate the different levels of investment projects. With the…

Q: Consider an investment project with the following repeating cash flow pattern every four years…

A: Annual equivalence of cash flows is used to convert the cash flows to periodic amounts. It is…

Q: The DPWH expects the cost of maintenance for a particular piece of heavy equipment to be P 50,000 in…

A: Present worth (PW) is a sum of PV of all the cashflows. Discounting is a technique which is used to…

Q: a. Compute the ATCF for the 5-year period using the tabular method (Show YEAR, BTCF, DEPRECIATION,…

A: Depreciation represents the estimated reduction in value of a fixed means within a financial time.It…

Q: 11. We bought a machine and will make equal annual payments of $1,000 each year for 6 years. The…

A: The present value formula helps in determining the today’s value of money which is to be received or…

Q: A public school is being renovated for BD13.5M. The annual value of benefits to be generated from…

A: Payback period is the period within which the initial investment is recovered fully.   Payback…

Q: Compute the net present value (NPV) of this investment.

A: Meaning of Net present value It is the difference between present value of cash inflows and present…

Q: You have the opportunity to purchase, for $650,000, an apartment building with a useful life of 37…

A: Present value of cash inflows is computed by following formula:-Present value of cash inflows = A *…

Q: semiannual payments must be set aside into a sinking fund to replace the equipment in eight years if…

A: Original cost today = 650000  Salvage value at end of 8th year = 50000 Inflation rate = 2%   Cost of…

Q: How much would $9,000 t8 be received at the end of 50 years be worth today if the required rate of…

A: Using excel, FV is 9,000 Rate = 7.5% Time (nper) = 50 years PMT = 0 PV = ?

Q: 22. You plan to purchase a property which has an expected NOI of $200,000. You plan to borrow…

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

Q: 2/Gamma Corporation is considering an investment of $518,000 in a land development project. The…

A: Net Present value is a capital budgeting technique used to evaluate a project. Under this method,…

Q: An investment product promises to pay $25,458 at the end of nine years. If an investor feels this…

A: Annuity: The fixed amount paid or received in equal time periods is referred to as annuity.Present…

Q: What is the net present value of a project that has an initial cost of $40,000 and produces cash…

A: Initial Cost is $40,000 Cash Inflows of $8,500 for 10 years. Discount rate is 12.68%   To Find:- Net…

Q: #1: An investment will cost $10,000 today for equipment plus expenses for labor and materials at a…

A: Discounted payback period is a capital budgeting tool. Here we look at the time period that it takes…

Q: Novak Corp. has just purchased equipment that requires annual payments of $70000 to be paid at the…

A: Calculation of present value

Q: If you want to withdraw $4500 in each year for the next 5 years when the interest rate is 20%, what…

A:

Q: Blossom, Inc. is considering purchasing equipment costing $90000 with a 6-year useful life. The…

A: PI is also known Profitability Index. It is a capital budgeting techniques which help in decision…

Q: Tricorp Company is considering an investment that is expected to return $320,000 after four years.…

A: Time value of money :— According to this concept, value of money in present day is greater than the…

Q: What is the net effect on a project's NPV, if it's salvage value in 10 years increases from $24126…

A: NPV is the difference between discounted Cash inflow and cash outflow. When determining discounted…

Q: I want to answer this question

A: To find the fair value of the investment, we use the formula for the present value of a growing…

Q: What is the value of a building that is expected to generate fixed annual cash flows of $4,138.00…

A: The PV of an investment refers to the cumulative value of its cash flows after they have been…

Q: What is the capitalized cost of $60,000 in year 0, $150,000 in year 2 and a uniform annual amount of…

A: year 0 = 60000 Year 2 = 150000 Yera 5 = 50000 per year forever.

Q: t will cost initially $28982 1 save an annual total am $ 4285 for 12 years. If the pject requires…

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

Q: The maintenance cost in year 1 is $23000, increasing by 7% each year. What is the present worth of…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: 7. What is the minimum interest rate of a company should accept, if it is support and finance an…

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

Q: calculate  the NPV of the project at 12% discount rate.

A: Information Provided: Initial Investment = $900 Sales = $1100 per year forever Costs = $600 (Year…

Q: EA13. LO 11.3 Julio Company is considering the purchase of a new bubble packaging machine. If the…

A:

Q: Q6: We buy a machine costing $20,000 and the book value of the machine at the end of five years is…

A: The question is related to tax benefit or tax paid in case an asset is sold.

Q: Investment A opportunity involves a payment of $20,000.00 and is expected to produce an income…

A: Investment A  Payment = $20,000  f1(t) = 33000e0.025t  Time = 10 years Investment B Payment =…

Q: cost of $100,000. Table Top wants to know how = cost in 5 years. Which table should Table Top use…

A: Present value is the amount of money that must be invested in the present to achive a future…

Q: 2. A company determines that the maximum they should pay for a new machine is $46,679. The company…

A: cost of new machinery = $46,679 net cash flow for 7 years= $8,000 per year interest rate = 5%…

Q: What is the capitalized cost of the project with interest rate 10% per year compounded monthly? The…

A: Present value of annuity is the current value of the future payments that are calculated using the…

Q: What is the maximum amount a firm should pay for a project that will return $18,200 annually for 5…

A: Initial outlay or initial investment must be atleast should be equal to the present value of cash…

Q: Rapir khe system if the software will save the company Php150000 per year for the next 5 years? Use…

A: The maximum amount that the company can afford to spend will be amount accumulated at the end of 5…

Q: You plan to buy some undeveloped land that should sell for $126,000 in ten years. What is the most…

A: Given: Future value (FV) =$126000No. of years (n)=10 yearsRate of return /interest (r)=18%

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.