(c) The operation costs cash flow is composed of equal payment series and strict gradient series. Draw the cash flow diagram of the strict gradient series (d) At an interest rate of 12% per year, find the equivalent annual worth (AW) of the operation costs. Show the complete solution (no shortcuts) as composite series showing the conversion factors obtained from the Interest Tables.

Q: Determine the IRR of the project and the NPV of the project at a cost of capital of 12% using the…

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A: Future value or CF = PV x (1+i)^twherePV = Present valuei = rate of interestt = time = 1 year

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A:

Q: Consider end-of-year cash flows for $8000, $15000, $22000, $29000, and $36000 for years 1 to 5. If…

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Q: 6. Consider the following cash flow series, Aj=1,500 Az=3,000 A3=4,500 A4=6,000 As=7,500 A6-9,000…

A: A1 = 1500, A2 = 3000, A3 = 4500, A4 = 6000 A5 = 7500, A6 = 9000, A7 = 10500 A8 = 12000, A9 = 13500,…

Q: Determine the PW of the following cash flows (CF) at 6% interest : @Year 0 = -14K , @ Year 1 = -8K,…

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A: UNIFORM ANNUAL EQUIVALENT FORMULA: EUAC=r×NPV1-1+r-n where, r = discount rate n = no of years

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A:

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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.