None Machine basic price $58,700 Modification cost $15,000 Salvage value at year 3 $30,000Net working capital $4,000 Annual cost saving $25,000 Tax rate 34.74% Cost of capital9.26% With this data what is cash flow 0?

To calculate the cash flow at time 0 (CF0), find the initial investment required for the project.…

Answered: Machine basic price $58,700…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Coffer Company is analyzing two potential investments. Project X Cost of machine Net cash flow: Year 1 Year 2 $ 85,470 Project Y $ 65,000 33,000 33,000 3,000 30,000 Year 3 Year 4 33,000 0 • 30,000 25,000 If the company is using the payback period méthod, and it requires a payback period of three years or less, which project(s) should be selected? Multiple Choice Project Y. Project X. Both X and Y are acceptable projects. Neither X nor Y is an acceptable project.
A company has a project available with the following cash flows: Year 0 1 2 3 4 Cash Flow -$ 35,990 12,570 14,740 19,660 11,000 If the required return for the project is 7.9 percent, what is the project's NPV? Multiple Choice $21,980.00 $11,078.65 $3,970.46 $12,085.80 $13,812.35
man.4
METHODS THAT CONSIDER TIME VALUE OF MONEY Two investment proposals have been made and the following data thereon are given: Project ALPHA Project BETA Investment P123,417 P155,934 Depreciable assets included in the investment figure 60,000 72,000 Economic life 8 years 12 years Annual sales revenue P65,000 P78,000 Annual out-of-pocket operating cost 36,000 42,500 Income tax rate 35% Cost of capital 10% Determine which proposal is the better one based on: a. Internal rate of return b. Net present value c. Profitability index d. Discounted payback period
Pls help stepwise sir
Coffer Company is analyzing two potential investments. Cost of machine Project X $ 97,090 Net cash flow: Year 1 Year 2 Year 3 Year 4 Project Y $ 72,000 36,500 3,700 36,500 33,500 36,500 33,500 0 13,000 If the company is using the payback period method, and it requires a payback period of three years or less, which project(s) should be selected? Multiple Choice ○ Project Y. ○ Project X. Both X and Y are acceptable projects. Neither X nor Y is an acceptable project. Project Y because it has a lower Initial Investment.
Can you please show me what I'm doing keep saying my answers are wrong
Please provide step by step explaination
Please show work thank you.
Draw the cash inflow and cash outflow diagram using the present worth method. Rate of interest=10%
Consider the following cash flows: Year 0 1 2 3 4 5 6 Cash Flow -$9,000 $2,000 $3,600 $2,700 $2,100 $2,100 $1,600 C. IRR. Calculate the IRR for this project. The company’s required rate of return is 10%. Should it be accepted or rejected? D. NPV. Using a 10% required rate of return, calculate the NPV for this project. Should it be accepted or rejected? E. PI. Calculate the Profitability Index (PI) for this project. Should it be accepted or rejected?
1. For the following cash flow compute: Investment $65,000 42,000 60,000 Annual operating Cost Annual Revenues Operating cost will increase by Arithmetic Gradient of G=$500 annually from the second year thru the 6 year Salvage Value at the end of 6 year Investment life n=6 years MARR= 10% 3,000 Hint for IRR use 20% a. Draw the cash-flow Diagram and compute PVW AW.FW b. IRR C. ERR

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Machine basic price $58,700 Modification cost $15,000 Salvage value at year 3 $30,000 Net working capital $4,000 Annual cost saving $25,000 Tax rate 34.74% Cost of capital 9.26% With this data what is cash flow 0?