Following are the cash inflows and outflows of a certain project. Year Outflow Inflow 0 150000  1 30000 30000 2 30000 3 50000 4 60000 5 40000 6 40000 The salvage value at the end of five years is Rs.40000. Taking the cut off rate as 10% calculate Net Present Value.

Q: Flora Company has recorded the following cash flows at the end of each year for a project. If the…

A: Present value: It can be defined as today’s worth of an investment that will be received in the…

Q: The initial investment is $52,133 and the salvage value is $10,000. The project is expected to…

A: Annual rate of return = (Annual Net Income / Average Investment)

Q: Required: a. Determine the discounted rate of return.

A: Formula: Discount rate= Lower Rate +Lower NPV×Higher Rate-Lower RateLower NPV-Higher NPV

Q: A project with an investment of $10,000 has net cash flows of $9, 000, $3,000, and $1,000 for each…

A: Average rate of return =Average net profits/average investment×100Average net profits =Total net…

Q: Required: A project has estimated annual net cash flows of $64,000 and is estimated to cost…

A: Payback Period :— It is the time period required to recover all its initial investment or cash…

Q: Calculate the Internal rate of Return of the project

A: Meaning of Internal rate  of return Means where present value of cash inflows = present value of…

Q: What will be the equivalent uniform annual amount that will be deposited in a bank for 15 years that…

A: Time Period 15 Initial Cost  P20,00,000.00 Additional Cost at the end evry 5th year…

Q: What is the IRR of a project with an initial outlay of ​$11,000 resulting in a single free cash flow…

A: IRR is the rate of return of a project. It is the rate at which the NPV becomes zero or the…

Q: A project has the following cash flows: Year ON 3 2 Project Cash Flows -$5,987.00 $2,456.00…

A: YearCash flow0-$5,987.001$2,456.002$2,456.003$2,456.004$2,456.00Cost of capital = 10%

Q: . Calculate the annual and present worth of the project.

A: Present Worth: Present worth or Net present value (NPV) refers to the difference between the value…

Q: A new machine will cost $750,000. The cash flows generated from this new machine are as follows:…

A: payback period = years before full period + (unrecovered cost at the start of the year /  cashflow…

Q: What is the capital recovery (CR) cost of the project? Assume Cash Flow First cost, S Annual cost, S…

A: In this we need to calculate the capital recovery cost of project.

Q: 3% compounded annually, what was the equivalent uniform annual cost for the 12-year period? Include…

A: An item of expenditure on a capital asset that brings back the asset to its working position is…

Q: Suppose a project costs $2,200 and produces cash flows of $640, $800 and $1,900 in each of the first…

A: IRR can be calculated by following function in excel   IRR can be calculated by following function…

Q: A project has estimated annual net cash flows of $57,600. It is estimated to cost $288,000.…

A: The Cash Payback Period refers to the period in which the cost of investment will be recovered by…

Q: A project has estimated annual net cash flows of $50,600. It is estimated to cost $288,420.…

A: Calculate the payback period as follows: Payback period = Initial investment / Net cash inflows

Q: A project has estimated annual net cash flows of $59,700. It is estimated to cost $370,140.…

A: The time taken by an entity to recover the initial cost of an investment is known as payback period…

Q: FCF IS $800 in year 1 and $850 in year 2. Cash flows are expected to be earned at the end of each…

A: The present value is the present worth of the amount that will be paid or received at future.

Q: Calculate the Equivalent X(4) for a project with the following cash flows: First Cost (F.C) = JD…

A: Cash Flows: Year Cash Flow Reference 0 -13000 First Cost 1 -3000 Operating Cost 2 -3000…

Q: A project with the required rate of return of 11.2% provides annual cash flows of $2,810 during the…

A: Year Cash flow 0 -12200 1 2810 2 2810 3 2810 4 0 5 0 6 5550 7 5550

Q: Calculate the net present value of a project which requires an initial investment of ₱1,000,000 with…

A: Net Present Value (NPV) is one the capital budgeting technique which is used to analyze the…

Q: The total investment required for two projects are estimated at OMR90, 000. The cash flows expected…

A: Payback period is period required to recover initial costs.

Q: A project has estimated annual net cash flows of $53,400. It is estimated to cost $598,080.…

A: There are many methods for evaluating the profitability of capital investment proposals. One of them…

Q: Cash Payback Period A project has estimated annual net cash flows of $46,500. It is estimated to…

A: Payback period refers to the time period that is required to recover the initial cost. With the help…

Q: A project has annual cash flows of €-45,000, €39,000, €18,400 and €8,400. Required: What is the…

A: Payback period is the period required to recover initial amount of investment in the projects under…

Q: (IRR calculation) Determine the IRR on the following projects: a. An initial outlay of $10,000…

A: IRR is the rate at which an investment breaks even in terms of expected returns.Key points about…

Q: 1 3 project/year -2500 1000 1500 1000 Project A Project B -2500 -1000 2500 2000 Calculate the Net…

A: Given:

Q: Assignment equipment, the useful life of which is four years. he net cash flows for the two projects…

A: As you have asked a question with multiple parts, we will solve the first 3 parts as per policy.…

Q: ving three relations, the correct one to calculate the annual v Cash Flow cost, S ual cost, S per…

A: Annual worth can be calculated by present value method and future value method.

Q: The initial outlay for a project is rs.20 crore.the cash inflows from year 1 to 6 years are rs.4…

A: The payback period is one of the capital budgeting techniques. It refers to the time period in which…

Q: If an asset costs $26,280 and is expected to have a salvage value of $3,104 at the end of five year…

A: Cost = $ 26280 Salvage value = $ 3104 Period = 5 Years Annual cash inflow = $ 5675

Q: C. Suppose that the initial cost of a certain operation is $25000 at the beginning of the first…

A: Cash flow (CF) diagram refers to a visual represent of the cash flows (income and expenses) of a…

Q: y-Dack p ws for 5

A: Payback period is the time when the investment cost is received in terms of cash flow. It is a…

Q: A project has the following cash in and out flows in its first year: Income generated:…

A: Income Generated = R100,000Cost of sales = R30,000Depreciation = R10,000Tax Rate = 27%

Q: Compute the payback statistic for Project A if the appropriate cost of capital is 7 percent and the…

A: Calculation of Payback Period:The payback period is 2.48 years.The project should be Accepted since…

Q: A project has estimated annual net cash flows of $57, 600. It is estimated to cost $288,000.…

A: The objective of the question is to calculate the cash payback period for a project. The cash…

Q: What is the IRR of a project that involves an initial expenditure of $100,000 but results in a…

A: Initial expenditure (Present Value) $1,00,000 Return After 10 years (Future Value) $2,00,000…

Q: IRR calculation) Determine the IRR on the following projects: a. An initial outlay of $8,000…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: If an asset costs $70,950 and is expected to have a salvage value of $949 at the end of five year…

A: The salvage value means the value of machinery that remains after it completes its life. The payback…

Q: The initial investment of a project is OMR 350,000 and its cash inflows are OMR 225,000 per year. In…

A: Payback period is one of the techniques of capital budgeting to choose one among various projects.

Q: A project has estimated to cost $64,025. and provide annual net cash flows of $15,000 for 6 years.…

A: Given: Initial cost estimated = $64,025 Annual net cash flow = $15,000 Term = 6 years

Q: Project cost is 40,000 and the cash inflows are Rs. 10,000, the life of the project is 5 years.…

A: The payback period refers to the period that is required to recover the initial cost. With the help…

Q: per year for the first 10 years and $1000 per year, for the 10 years past the initial maintenance…

A: The current value of a future sum of money or stream of cash flows, given a specified rate of…