Best Industries is considering an investment project that has the following cash flows: Year 0…………… $ -1,200 Year 1………………. 200 Year 2……………….. 200 Year 3……………….. 800 Year 4………………… 300 The company’s discount rate for such calculations is 10%   1. For Best Industries what is the project’s IRR? a. 10.00% b. 11.92% c. 22.75% d. 8.40% 2. For Best Industries what is the NPV? a. $153 b. $ -46.94 c. $375.44 d. $ -153.06 3. Internal rate of return is also: a. Yield b. Rate of return c. Discount rate that makes the NPV equal to zero d. All of the above

Q: Find the present worth in year 0 for the cash flows shown. Let i= 16% per year. 0 1 2 50 3 4 5 6 7 8…

A: Present value is the equivalent of the future cash flow that is expected based on the time value of…

Q: (a) Calculate the TWRR and the DWRR of the fund. (b) Comment on the results.

A: The time-weighted return is an approach to assess an investment portfolio's performance that…

Q: alculating  the present value of a future cash flow to determine its value today is known…

A: The answers along with their explanation is provided below.

Q: 7. Consider the following table for the cash flows of an investment account: Fund value before…

A: Time-weighted rate of return (TWRR) is a crucial metric in finance, offering a geometrically precise…

Q: 4. An investment has the following cash flows. What is the ARR? Year 0 -90,000 Year 1 45,000 Year 2…

A: Year Cash Flows 0 -90,000 1 45,000 2 10,000 3 30,000 4 30,000

Q: PAR Ltd is considering an investment and has determined the following:   Expected net cash flows:…

A: Accounting rate of return means how much average annual profit can be earned on average investment…

Q: Consider the following two mutually exclusive projects: Year Cash Flow (X) Cash Flow (Y) -$ -$ 0…

A: SummaryProject X NPV: $2,246.36Project Y NPV: $2,224.94Project X IRR: 16.41%Project Y IRR: 16.53%…

Q: 1. Compute the IRR for the investment represented by the following cash flow table: Year 0. 1 3 4 6.…

A: An internal rate of return or IRR is referred to as the metric, which are used in the financial…

Q: a) NPW using an interest rate of 15% b) NPW using an interest rate of 20%

A: Net Present Value (NPV) or Net Present Worth (NPW)  It is the present value of future cash flows…

Q: Find the present worth in year O for the cash flows shown. Let -13% per year. 8 Year 50 70 90 110…

A: The current value of the cash flow or stream of cash flow after discounting is termed as the present…

Q: What is the project's MIRR? r = 10.00% 0 -$875 Year Cash flows O a. 22.51% O b. 11.75% O c. 17.21% O…

A: YearsCash Flows0($875)1$3002$3203$3404$360Rate10%Required:Modified Internal Rate of Return =?

Q: =NPV(B26,I27:R27)-B24 B26 = discount rate of 9% B24 = initial investment of $30m I27:R27 = yearly…

A: NPV represents the absolute profitability measure of the project and is applied by financial…

Q: 6. Determine the equivalent present worth in year 0 (PT) of all of the cash flows at i = 12% per…

A: Data given: i= 12% Initial cash flow in year 0 = $30000 Annual cash flow from year 1 to 3 = $5000…

Q: Initial investment............... $80,000   Annual after-tax cash inflow............. ?…

A: The net present value method is used to evaluate the investment projects. We can evaluate the…

Q: JoyFM Inc. has an investment opportunity, which generates cash flows shown below. The investment…

A: Cash flow for year 0 = -$14,500 Cash flow for year 1 = $7400 Cash flow for year 2 = $8700 Cash flow…

Q: Compute the payback period for an investment with the following net cash flows. (Round your answer…

A: >Payback period is the amount of time it will take to get the money invested back. >It is…

Q: Keller Company has gathered the following information on an investment project: Initial investment…

A: Internal rate of return refers to the predicted yearly rate of growth earned by the business…

Q: Consider the following investment projects.Year (n) Net Cash FlowProject 1 Project 20 -$1,200…

A: Internal  Rate of return: Internal Rate of Return can be defined as a financial measure used to…

Q: 6.Wainright Co. has identified an investment project with the following cash flows.      Year…

A: Years  Cash flows 1 720 2 930 3 1190 4 1275 We are given these cash flows for an…

Q: Mountain Brook Company is considering two investment opportunities whose cash flows are provided…

A: Explanation of the Present Value Index:The Present Value Index (PVI) measures the relative…

Q: The following are a project's cash flows. What is the projects IRR? year -1015 $450 cash flows 9.70%…

A: IRR  of a project is the discount rate which makes net present value of the project equal to zero.…

Q: Munir S/B has provided the following data concerning a proposed investment project:…

A: The question is related to Capital budgeting. Taxable cash inflow means earnings after taxes but…

Q: 1. Use the cash flow diagram to determine the uniform annual amount in years 1 through 8 that is…

A: Uniform annnual amount=(cash flow×i)i=10%Uniform annual rate:=0.10(25×5+50×3)=27.5Hence uniform…

Q: What is the present value of the following cash flow stream at a rate of 10.0%? Years: 0 1 2 3…

A: The present value of cash flows is calculated by discounting each future cash flow using an…

Q: What is the present value of the following cash flow stream at a rate of 10.0%? Years: CFS: a.…

A: Present value = Future cash flow / (1 + Discount rate)^Number of years

Q: 23. Investments A and B are mutually exclusive and cost $2,000 each. The firm's cost of capital is…

A: Present Value = Cash Flow / (1 + r)^nWhere:n is the year of cash flowr is the cost of capital (9% or…

Q: 2. Calculate the IRR for the following project with the following cash flows: An initial outflow of…

A: Capital budgeting is the process by which a corporation examines potential large projects or…

Q: For each of the investments below, calculate the rate of return earned over the period. Cash Flow…

A: In this question, we are required to determine the rate of return for Investment A, B, C, D and E.

Q: What is the profitability index for an investment with the following cash flows given a 20 percent…

A: The Profitability Index(PI) is one of the capital budgeting techniques that take into consideration…

Q: Gomez is considering a $250,000 investment with the following net cash flows. Gomez requires a 12%…

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

Q: The investment shown in the following figure has an annual equivalent worthof $200 at i = 8%.…

A: annual worth formula: annual worth=npv ×r1-11+rn

Q: Question 8 (Ignore income taxes in this problem.) Z Company has gathered the following data on a…

A: Capital budgeting techniques are the methods that are used to evaluate various alternatives of…

Q: You got a 22,000 Rupees loan from bank Alflah for the 6 years that is charges 12% interest prepare…

A: The loan repayment of Rs. 22000  in 6 years of installment of Rs. 5351 at the interest rate of 12%.…

Q: 1) What is the present worth of this cash flow diagram given i = 8.66% ? 2) What is the future worth…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: Munir S/B has provided the following data concerning a proposed investment project:…

A: The tax on salvage value is calculated by applying the rate of tax on the gain on the sale of an…

Q: McCann Co. has identified an investment project with the following cash flows. Year Cash Flow 1 $820…

A: Present Value is the current price of future value which will be received in near future at some…

Q: What is the present value of a stream of cash flows, which has the timeline given below. (After year…

A: Present value of a stream of cash flows = sum of present values of cashflow discounted at 10% PV of…

Q: - Suppose that the cash flows of two investments are as follows: Unit: S CASH FLOW AT YEAR YEAR: 2…

A: Solution : Computation of NPV       Investment A Investment B Particulars Period PV Factor…

Q: $169,700 initial investment will generate the following present values of net cash flows. What is…

A: The break-even point is the moment at which total income equals total costs, resulting in neither…

Q: Considering the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B)…

A: Year wise Cash Flow of Project BCash flow in Year 0 = -$40,000Cash flow in Year 1 = $20,300Cash flow…

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.