Evaluate the above offers using the investment evaluation techniques mention below without using Excel and mentioning the steps.: All calculations steps are be provided a- Modified Internal Rate of Return (MIRR)
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- Ms. Rahat hails from a business family. She is considering starting a supermarket with an investment ofOMR 100,000. She has provided the following information about two possible locations to start thesupermarket. Her family had advised to accept the project which recovers the funds within 3 years. Particulars Supermarket at maabela Supermarket at al Ansab Initial investment 100,0000MR 10% 100,000 OMR 12% Cost of capital Year 1 40,000 60,000 Year 2 50,000 40,000 Year 3 40,000 20,000 Evaluate the above proposals using the Investment appraisal techniques mentioned below, a. Pay-back period b. Discounted Pay-back period c. Internal Rate of Return (IRR) d. Modified Internal Rate of Return (MIRR)Ms. Rahat hails from a business family. She is considering starting a supermarket with an investment of OMR 100,000. She has provided the following information about two possible locations to start the supermarket. Her family had advised to accept the project which recovers the funds within 3 years Supermarket at Maabela Supermarket at Al Ansab 100,000 OMR Particulars Initial Investment 100,000 OMR Cost of capital 10% 12% 60,000 40,000 20,000 Year 1 40,000 50,000 40,000 Year 2 Year 3 Evaluate the above offers using the investment evaluation techniques mentioned below without using Excel and mentioning the steps.: All calculations steps are to be provided a- Internal Rate of Return (IRR) b- Modified Internal Rate of Return (MIRR) I. States) 92°F CleaMs. Rahat hails from a business family. She is considering starting a supermarket with an investment of OMR 100,000. She has provided the following information about two possible locations to start the supermarket. Her family had advised to accept the project which recovers the funds within 3 years Particulars Supermarket at Maabela Supermarket at Al Ansab Initial Investment 100,000 OMR 100,000 OMR Cost of capital 10% 12% 40,000 50,000 40,000 60,000 40,000 20,000 | Year 1 Year 2 Year 3 Evaluate the above offers using the investment evaluation techniques mentioned below without using Excel and mentioning the steps.: All calculations steps are to be provided a. Pay-back period b. Discounted Pay-back period c. Internal Rate of Return (IRR)
- Sheldon Cooper and Amy Fowler are married and live in Pasadena, California. They have as a new investment goal to create a college fund for their newborn daughter. They estimate that they will need $195,000 in 18 years. Assuming that the Cooper-Fowler family could obtain a return of 5 percent, how much would they need to invest annually to reach their goal? Use Appendix A-3 or the Garman/Forgue companion website. Round your answer to the nearest dollar. Round Future Value of a Series of Equal Amounts in intermediate calculations to four decimal places.To illustrate: a) Ms. Doria has a total savings of P250,000 which she invested in a busıness venture b) Knowing that this will not be cnough, she borrowed PI00,000 from BDO c) She looked for a site, one near a school or hospital, to start a copying business She purchased a copying machine for P300,000 and paper supplies and ink for P40,000 d) The remaining P10,000 she put aside as cash reserve for future needs of the copy center C. Statement of Cash Flows for July: Cash receipts from customers Cash paid for supplies During the month of June, the following activities took place: • Reproduction of documents which brought in sales revenues of P50,000 in cash • Operating expenses paid: P12,000 for rent of the stall, P3,000 for power and water. She used up 25% of the paper supplies and ink that she bought. Cash withdrawn by Doria Cash paid for rent Cash paid for water and power Increase in Cash e in Cash at the beginning of July 45,000 Continue with the Doria illustration in the month of…Juanita has an opportunity to invest in her friend's clothing store. The initial investment is $10,200 and the expected annual cashflows thereafter are {$300; $700; $1,300; $2,000; $2,000; $5,000; $5,000}. What is Juanita's IRR on this investment?
- Ali is an intelligent business woman. She makes her investments after a very thoughtful process. In January 2018, her manager has shown her some projects with the following details Option A Investment into a towel business that initially cost $100,000 and then will generate cash inflow of $14000 per year for the next 10 years Option B Investment into a detergent business that initially cost $90,000 and then will generate cash inflow of $10,000 for each of next 12 years. The rate of return associated with both the investments is 11%. Calculate net present value (NPV) and internal rate of return (IRR) of both the investments. Comment on which investment Mrs Alis should pick on the basis NPV and IRR.Your neighborhood laundromat is for sale and a friend is considering investing in this business. Your friend has asked for your financial advice regarding this endeavor. For the business alone and no other assets (such as the building and land), the purchase price is $250,000. The net cash flows for the project are $30,000 per year for the next 5 years. The plan is to borrow the money for this investment at 6%. You will need to submit a presentation sharing your recommendation and you must address the following questions:Part A: Calculate the Net Present Value and Payback Period: What is the net present value of this project? Calculate the simple payback period for this project. Your desired payback period is 5 years. How long is the payback period for this project? Use the following template to complete the Unit 4 Excel spreadsheet (IP): Unit 4 IP Assignment Template Part B: Evaluate the investment and provide calculations for an alternative deal: How would you evaluate this…Ali is an intelligent business woman. She makes her investments after a very thoughtful process. In January 2018 , her manager has shown her some projects with the following details Option A Investment into a towel business that initially cost $200,000 and then will generate cash inflow of $24000 per year for the next 10 years Option B Investment into a detergent business that initially cost $190,000 and then will generate cash inflow of $20,000 for each of next 12 years. The rate of return associated with both the investments is 12%. Calculate Payback period, discounted payback period, profitability index, net present value (NPV) and internal rate of return (IRR) of both the investments. Rank the projects based on each evaluation criteria. Comment on which investment Mrs. Ali should pick on the basis NPV and IRR.
- Following the last question - John is evaluating the idea to open an ice cream shop on a piece of land. The followings are what he might include in the cash flows: Instead, John can earn $120,000 if he decides to sell the land today. He bought this land for $350,000 two years ago. • Outfitting the space for an ice cream shop would require a capital expenditure of $150,000 today. It'll require an investment of $30,000 in inventories for making the ice creams today. What are the opportunity costs of opening the ice cream shop? 1 · . -$120,000 O-$180,000 O-$350,000 O-$270,000 4Ashley projects that she can get $130,000 cash per year for 5 years on a real estate investment project. If Ashley wants to earn a rate of return of 10%, what is the maximum that she should pay for the investment? (PV of $1 and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Round your answer to the nearest dollar. Multiple Choice O $430,576 $598,000 $492,802 $88,476 Prev 1 of 35 MacBook Air Next >Robert Jones and his wife Suzie recently opened an investment account with the intention of saving enough to purchase the house of their dreams, a beautiful, little white house on the corner of Michigan Avenue and Maple Street. Their goal is to have $45,000 down in five years. Their account will guarantee them a return of 8% compounded annually. How much do they need to put into the account right now to reach their objective? $46,778.96 $39,546.09 $51,214.75 $30,626.24