A Machine will cost Rs. 100000 and will provide an annual net cash flow of Rs. 30,000 for six years. The cost of capital is 15 % calculate machines NPV & IRR. Should the machine be purchased?

Q: The cost od the project is $2,100,000. It will produce future cash flows of $1,300,000 for 2 years.…

A: The Internal Rate of Return (IRR) of the project, we need to find the discount rate at which the net…

Q: Are there multiple IRRS for the following cash-flow sequence? How many are possible according to…

A: According to Descartes's rules of signs there can be as many IRRs as there are changes in signs (+…

Q: The total investment required for a project is estimated at OMR 90, 000. The cash flows expected…

A: Investment = 90000 Free cash flow (year 1) = 18000 Balance after 1 year= 90000-18000=72000 Free cash…

Q: Machine will cost Rs. 100,000 and the machine will generate annual cash flow Rs. 30,000 each for…

A: Net present value is the current value of future cash flows with respect to time value of money.

Q: Assume everything is given in n=0, CONSTANT dollars unless otherwise stated: MTA Textile INC. is…

A: The following calculations are done for MTA Textiles INC. to show the investment done in the…

Q: Calculate the Internal rate of Return of the project

A: Meaning of Internal rate  of return Means where present value of cash inflows = present value of…

Q: Assume everything is given in n=0, CONSTANT dollars unless otherwise stated: MTA Textile INC. is…

A: Option (b) is the correct answer. The following calculations are done for MTA Textiles INC. to show…

Q: Project L costs $70,000, its expected cash inflows are $12,000 per year for 8 years, and its WACC is…

A: Project's MIRR is calculated using excel MIRR function

Q: Brenton Industries has a project that costs $10,000 today and will produce cash flows of $3,000 in…

A: Initial Costs  $                  10,000.00 Cash Flow  $                    3,000.00 Time Period…

Q: Project A costs $41400, its expected net cash inflows are $13400 per year for 8 years, and its WACC…

A: Here, The present value of net cash inflows is 'PVCI' Future value is 'FV' Cost of capital is 'r'…

Q: Suppose a project costs $2,200 and produces cash flows of $640, $800 and $1,900 in each of the first…

A: IRR can be calculated by following function in excel   IRR can be calculated by following function…

Q: Firm x has made an investment of $ 300.000 . It is thought that the project will provide $170.000…

A: Present value is the sum of future cashflows discounted at discount rate

Q: Ranjan is looking to invest in a Project worth Rs. 600,000. The project will run for three years and…

A: Net present value is the excess of present value of cash inflows over the present value of cash…

Q: Ex6. Calculate NPV from the following information; Investment is $5,000. The life of the project is…

A: Step 1: The calculation of the NPV ABCDEF1YearCashflowPVF @ 4%PVF @ 6.45%PV @ 4%PV @ 6.45%20…

Q: How do I do this using a ba ii plus? A project has annual cash flows of $5,000 for the next 10 years…

A: The NPV of a project refers to the measure of the profitability of the project as it discounts the…

Q: A project costs $2.5 million up front and will generate cash flows in perpetuity of $240,000. The…

A: Project cost = $2.5 million Cash flows in perpetuity = $240,000 Cost of Capital = 9%

Q: Tomato Inc. has a Ketchup project that has a initial investment of $ 1,000,000, The estimated life…

A: Present Value is the Current value and discounted value of the all future cash flows or sum of money…

Q: Assume everything is given in n=0, CONSTANT dollars unless otherwise stated: MTA Textile INC. is…

A: The following calculations are done for MTA Textiles INC. to show the investment done in the…

Q: at the end of the 5th year, there is a salv ows are estimated as follows: D00 TL, 2. year. 500 000…

A: Given information : Year Cash flows 0 1200000 1 350000 2 500000 3 700000 4 850000 5…

Q: Find the IRR of the project.

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: epp Corporation is considering two projects of machinery that perform the same task. The required…

A:

Q: Initial cash outlay is $50,000.  The required rate of return is 9%.  The length of time of the…

A: Solution:Net Present Value (NPV) means the net present value of cash inflows from the project after…

Q: You are considering investing RM60000 in new equipment. You estimate that the net cash flows will be…

A: NPV is the net current worth of cash flows that are expected to happen in the future.

Q: What is the NPV of a project that costs $0.5 million and cash inflows $6000 /month paid annualy for…

A: Data given: Initial cost = $0.5 million Cash inflow per month=$6000 N=10 years Cost of capital=6%…

Q: Q4: Find the internal rate of return for the investment, the cash flow shown below using the (I.I.R)…

A: Internal rate of return or IRR is an evaluation approach that of capital budgeting where a return…

Q: 1 Abusiness is considering the option of buying a piece of equipment that has a life of 5 years. The…

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

Q: Olive Company is considering a project that is estimated to cost $279,000 and provide annual net…

A: The internal rate of return is the sum of money a project makes in a certain time period to cover…

Q: Project L costs $59,583.76, its expected cash inflows are $13,000 per year for 10 years, and its…

A: IRR is the rate at which NPV of the project is 0

Q: A project has an initial cost of $70,000, expected net cash inflows of $13,000 per year for 9 years,…

A: In this question, we are required to determine the Net Present Value (NPV).

Q: A project in Switzerland costs $6 million. Over the next three years, the project will generate…

A: In the context of capital budgeting or investment analysis, the "break-even salvage value" refers to…

Q: Consider the following: An electronic equipment costs P 30,000. Maintenance cost is P 3,000 per…

A: The cash flow diagram reflects the comparison of income generated during the year with respect to…

Q: You must analyze two projects, X and Y. Each project costs $1,000, and the firm’s WACC is 10%. The…

A: Initial cost = $1000 WACC = r = 10% Cash flow for years 1 = cf1 = $500 Cash flow for years 2 = cf2 =…

Q: BECL Ltd is considering a project, which will involve the following cash inflows and (out)flows:…

A: Net Present Value The net present value method is the method of capital budgeting based upon the…

Q: RAK Properties need a mixture costing AED 109115. The machine will work for 5 years. Expected cash…

A: Formula:

Q: expenses is P6T. I

A: Initial cost (C) = P 120000 Salvage value (S) = P 20000 Annual profit (P) = P 40000 - P 6000 = P…

Q: What is the ARR of a project investment of 1 million pesos of machinery with a life of 10 years and…

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

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: You wish to evaluate a project requiring a $59,900 initial investment and having a useful life of…

A: IRR is also known as Internal Rate of Return.. It is a capital budgeting technique which helps in…

Q: A project has the following cash flows. It costs $15,000. It briongs in $22,000 after one year, and…

A: To calculate the Modified Internal Rate of Return (MIRR) using the combination approach, you'll…

Q: The Payback Period (assume the operating cashflows are spread evenly over each year) The Accounting…

A: Calculation of Payback Period                   Year Annual Cash Flow Cumulative Cash Flow   1…

Q: Project cost is 40,000 and the cash inflows are Rs. 10,000, the life of the project is 5 years.…

A: The payback period refers to the period that is required to recover the initial cost. With the help…