For the following cash flow, calculate the equivalent AW. Assume i= 8% per year. Year Incomes Outcomes 4600 4600 6000 4600 7000 4600 8000 4600 9000 10000 2. 3. 4)

Q: The cost is $2,000 in year 1 and amounts increasing by 7% per year through year 10. Use an interest…

A: PRESENT VALUE FORMULA: PRESENT WORTH=∑NFUTURE VALUE1+RN R=RATE OF INTEREST N=NUMBER OF YEARS

Q: Assuming a​ 1-year, money market account investment at 5.315.31 percent​ (APY), a 3.413.41 percent…

A: The objective of this question is to calculate the after-tax rate of return, the real rate of…

Q: What is the present value of the following cash flow at a 12% discount rate?…

A: Present value is calculated using the discounting factor of Rate @ 12%

Q: Calculate the percentage of total return for $6800

A: You must have the initial investment amount and the final value after the return to compute the…

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: Suppose the MARR is 5%. Use the following table to answer the question-The IRR on the incremental…

A: Incremental IRR refers to the Internal rate of return on the increased revenue because of increased…

Q: Determine values for present worth (PW or NPV), future worth (FW), annual worth (AW) AND discounted…

A: Net Present Value Every project will have cash inflows and cash outflows, and the difference between…

Q: The net present value (NPV) the cash flows from T=0 to T=3 is $2278 when using a 10% discount rate.…

A: Net present value = Total Present value of all years cash flows - initial investment, applying the…

Q: The future worth in year 10 of an arithmetic gradient cash flow series for years 1 through 10 is…

A: The future value of a cash flow series depends on the interest rate and time period for which it has…

Q: You have invested $10,000 in this ETF at the beginning of year 2020 and its year-end value was…

A: Rate of return refers to the return earned on an investment or asset over a fixed period of time.…

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: Calculate NPV using 10% discount rate. Year Cash Flow 0 1 -30,000 10,000 2 15,000 3 15,000

A: YearCash flow0-30,000110,000215,000315,000

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: Determine the DCPB based on a MARR rate of 8.0% Determine the IRR

A: Discounted payback period means discounting the cashflows to know when the initial investment period…

Q: Consider the following cash flow diagram. What value of C makes the inflow series equivalent to the…

A: The present value of the cash flow is the current worth of a cash flow at a certain rate of interest…

Q: PV of Cash flows for the next 6 years as follows (1500,2000,2500,3000,3500,4000) at 8.8% discount…

A: The present value represents current expected value of the future stream of cash flows. It is…

Q: P450 P370 P290 P210 P130 P50 P50 1 2 3. 6. i = 10% P F

A: Present Value:  The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: Calculate the equivalent AW at i 10% per year for the following net cash flow: Year Cash flow, $…

A: Given: Year Cash flows 0   1 -$2,000.00 2 -$2,000.00 3 -$2,000.00 4 $5,000.00 5…

Q: Find the NPV for the following cash flows assuming a WACC of 10%.    YR CF 0 -15,000 1 6,000 2…

A: NPV is the difference between present value of all cash inflows and initial investment NPV =PV of…

Q: Assuming a​ 1-year, money market account investment at 2.282.28 percent​ (APY), a 1.391.39 percent…

A: The objective of this question is to calculate the after-tax rate of return, the real rate of…

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.