An iron ore of 50x10^6 ton was produced during 15 years and has been sold for $100 per ton Estimate the required investment if 0.4 turnover ratio was considered. If produced ton costs $28, what would be the net present value of the project when 8% safe rate and 15% rate of return assuming that the Investment will be depreciated within 15 years?

An iron ore of 50x10^6 ton was produced during 15 years and has been sold for $100 per ton Estimate the required investment if 0.4 turnover ratio was considered. If produced ton costs $28, what would be the net present value of the project when 8% safe rate and 15% rate of return assuming that the Investment will be depreciated within 15 years?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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The initial investment cost of machine A is 9,000 TL, the useful life of the machine is 6 years and annual operating costs are 5,000 TL. The initial investment cost of machine B is 16,000 TL, and at the end of its 9-year useful life, the machine can be sold for 4,000 TL. Since the operating costs of machine B are 4,000 TL per year, compare the two machines according to the present value analysis based on an analysis period of the least common multiple of the alternative life of the machines. The interest rate is 10% per year.
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A five-year project has an initial fixed asset investment of $295,000, an initial NWC investment of $27,000, and an annual OCF of- $26,000. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required return is 12 percent, what is this project's equivalent annual cost, or EAC? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Equivalent annual cost $ -111,075.31
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Given the following information, what is the financial break-even point? Initial investment = $250,000; variable cost = $95; fixed cost = $58,000; price = $130; life = 6 years; required return = 12%; SL depreciation; before-tax salvage value of assets = $28,000; initial net working capital investment = $35,000, and tax rate is 21%. Do It correctly I'll rate

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