3. A company would like to buy an equipment will increase 30 % in the production capacity. This equipment costs P100,000. The cash outflows in first, second and third year areP30,000, P40,000 and P70,000 respectively. Required: a. Find out IRR using trial and error method. b. Find out IRR using excel method
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- Your company is planning to purchase a new log splitter for is lawn and garden business. The new splitter has an initial investment of $180,000. It is expected to generate $25,000 of annual cash flows, provide incremental cash revenues of $150,000, and incur incremental cash expenses of $100,000 annually. What is the payback period and accounting rate of return (ARR)?Assume a company is going to make an investment in a machine of $825,000 and the following are the cash flows that two different products would bring. Which of the two options would you choose based on the payback method?AG company would like to spend RM 700,000 on buying equipment. The cash inflows as in the Table. Calculate the payback period. Payback Period YEAR CASH FLOW 1 150.000 2 150,000 3 200,000 4 600,000 5 900,000
- An Organization invests BDT. 10,00,000 for a project and the discount rate is 12%. After analyzing the NPV and BCR value for the giventable, make a decision. (Draw the cash flow diagram)a) Cash Flow Diagram b) manual solution Company C just went into a manufacturing contract. The contract will pay Company C $3 million starting 5 years from and amounts increasing by $100,000 each year through year 10. What is the present worth of the contract if the interest rate is 10% per year?only typed solution
- BON Cop & conenglating| Fow e e con hese of a machine that will produce cash savings of $31,000 per year for five years. At the end of sold to realize cash flows of $6,100, Interest is 10%. ASsume the cash flows occur at the end of each P at EVA of $I. PVA of $1, EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) E he koal present walue of the cash savings. (Do not round intermediate calculations. Round your final answer to nearest whole r) Nexb > 900.Assume a company is going to make an investment of $450,000 in a machine and the following are the cash flows that two different products would bring in years one through four. Option A, Product A Option B, Product B $185,000 $155,000 190,000 185,000 65,000 55,000 20,000 65,000 A. Calculate the payback period of each product. Round your answers to 2 decimal places. Option A, Product A fill in the blank years Option B, Product B fill in the blank yearsGiven the cashflow tabulated below. What is the payback period using the discounted method at MARR=15%? Initial EOY Revenues Expenses investment $120,000 $35,000 $15,000 $50,000 $10,000 $75,000 $5,00o 4 $65,000 $40,000 0. $15,000 О a. year 4 O b. year 2 Ос уear 1 O d. year 3 O e. year 5 O f. year 6
- Assume a company is going to make an investment of $450,000 in a machine and the following are the cash flows that two different products would bring in years one through four. Option A, Product A Option B, Product B $190,000 $150,000 185,000 175,000 60,000 60,000 25,000 75,000 A. Calculate the payback period of each product. Round your answers to 2 decimal places. Option A, Product A fill in the blank 1 years Option B, Product B fill in the blank 2 years B. Which of the two options would you choose based on the payback method?Calculate the equivalent AW at i= 10% per year for the following net cash flow: Year Cash flow, $ -2,000 2. -2,000 3 -2,000 4 5,000 5,000 5,000 Select one: O a. 573.9 O b. 1,431.9 O c. 1,860.9 O d. 1,002.9 O e. 2.289.9Assume a company is going to make an investment of $460,000 in a machine and the following are the cash flows that two different products would bring in years one through four. Option A, Product A Option B, Product B $195,000 $145,000 185,000 175,000 65,000 65,000 25,000 85,000 A. Calculate the payback period of each product. Round your answers to 2 decimal places. Option A, Product A fill in the blank 1 years Option B, Product B fill in the blank 2 years B. Which of the two options would you choose based on the payback method?