16A project with an initial invest of RO25000 having a estimated life of 5 years and a scrap value of RO 2000has the following cash inflows.34.5ut of5000100001200040003000What will be the NPV with a discount rate of 7% as given below140.9345790.8734390.8162980.7628950.712986O a. 3353.51O b. 4072.04Oc. 4819.37O d. All the options are wrong

Net present value (NPV) is the difference between the present value of cash inflows and the present…

A project with an initial invest of RO25000 having a estimated life of 5 years and a scrap value of RO 2000 has the following cash inflows. 2 3 4. 5000 10000 12000 4000 3000 What will be the NPV with a discount rate of 7% as given below 1 2 4 5 0.9345790.8734390.8162980.7628950.712986 O a. 3353.51 O b. 4072.04 O c. 4819.37 O d. All the options are wrong

A project with an initial invest of RO25000 having a estimated life of 5 years and a scrap value of RO 2000 has the following cash inflows. 2 3 4. 5000 10000 12000 4000 3000 What will be the NPV with a discount rate of 7% as given below 1 2 4 5 0.9345790.8734390.8162980.7628950.712986 O a. 3353.51 O b. 4072.04 O c. 4819.37 O d. All the options are wrong

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A project with an initial invest of RO25000 having a estimated life of 5 years and a scrap value of RO 2000 has the following cash inflows. 1 2 3 4 5 5000 10000 12000 4000 3000 What will be the NPV with a discount rate of 8% as given below 1 2 3 4 5 0.925926 0.857339 0.793832 0.73503 0.680583 a. All the options are wrong b. 4072.04 c. 3353.51 d. 4819.37
Green Submarine has a project with the following cash flows: Year Cash Flows −$17,400 1 6,630 2 11,300 3 7,590 4 −2,600 The discounting rate is 10 percent and the reinvestment rate is 12 percent. What is the MIRR for this project using the combination approach? Multiple Choice 12.88% 16.52% 13.65% 14.51% 15.38%
A project with an initial invest of R025000 having a estimated life of 5 years and a scrap value of RO 2000 has the following cash inflows. 1 2 3 4 5000 10000 12000 4000 3000 What will be the NPV with a discount rate of 9% as given below 1 4 0.917431 0.84168 0.772183 0.708425 0.649931 O a. 3353.51 O b. 4072.04 O c. All the options are wrong d. 4819.37
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A project with an initial invest of RO25000 having a estimated life of 5 years and a scrap value of RO 2000 has the following cash inflows. 1 2 3 4 5 5000 10000 12000 4000 3000What will be the NPV with a discount rate of 7% as given below 1 2 3 4 5 0.934579 0.873439 0.816298 0.762895 0.712986 a. All the options are wrong b. 4819.37 c. 3353.51 d. 4072.04
Yellow Day has a project with the following cash flows: Year 0 1 2 Cash Flows -$ 26, 200 10,150 17,100 9,240 -3,200 What is the MIRR for this project using the reinvestment approach? The interest rate is 7 percent. 4 Multiple Choice 10.24% 14.50% 8.54% 11.39% 13.29%
Dragon Products Company is considering two projects. Theprojects’ cash flows are as follows: EXPECTED NET CASHFLOWSYEAR PROJECT A PROJECT B0 ($10300) (12,500)1 1700 28702 1930 24503 2500 47004 2800 45755 4200 3450Discount Rate for both pojects = 6.8% REQUIRED 1. Find the Payback Period [PBP] of both projects2. What is the Discounted PBP of both projects ? 3. Calculate the Net Present Value of the two projectsand decide which one is better?4. What is the profitability index of both products ?What is the function of PI in project selection? 5. What are the IRR of the projects ? Which of theprojects is the best using IRR as a criteria? Why?6. Why is sunk cost not considered when decidingabout selecting a project? Which cost is consideredand why?
A project with an initial invest of RO25000 having a estimated life of 5 years and a scrap value of RO 2000 has the following cash inflows. 3. 5000 10000 12000 4000 3000 What will be the NPV with a discount rate of 7% as given below 1 2 3 4. 0.934579 0.873439 0.816298 0.762895 0.712986 O a. 4072.04 O b. 4819.37 O c. 3353.51 O d. All the options are wrong uation of proposals under capital budgeting process?
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Find the present worth at time 0 of the chrome plating costs shown in the cash flow diagram. Assume i = 10% per year.
s Find the present worth at time 0 of the chrome plating costs shown in the cash flow diagram. Assume /= 12% per year. P-7 2000 1800 1400 1600 1200 1000 year The present worth of the chrome plating is determined to be $