Malaysia had invited a lot of engineers to develop EV car and hydrogen car. Assist them by preparing financial model base on payback (payback period and ROI) and NPV in 5 years' time with calculation of 15% rate return. Then give an opinion on the two projects. Unit Price Initial Expecte Revenue Revenue Revenue Revenue Revenue investme d sales 1st 2nd 3rd 4th nt EV car 72,000 4.5 40,000 2.8 billion 2.8 billion 2.8 billion 2.8 billion 2.8 billion Million Hydroge 78,000 5.85 5.85 5.85 5.85 n car 8.5 75,000 5.85 billion billion billion billion Million billion

Malaysia had invited a lot of engineers to develop EV car and hydrogen car. Assist them by preparing financial model base on payback (payback period and ROI) and NPV in 5 years' time with calculation of 15% rate return. Then give an opinion on the two projects. Unit Price Initial Expecte Revenue Revenue Revenue Revenue Revenue investme d sales 1st 2nd 3rd 4th nt EV car 72,000 4.5 40,000 2.8 billion 2.8 billion 2.8 billion 2.8 billion 2.8 billion Million Hydroge 78,000 5.85 5.85 5.85 5.85 n car 8.5 75,000 5.85 billion billion billion billion Million billion

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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Can you help me work out question 1(a) please without having to use excel? Thank you in adv
Use excel to solve
Harry is trying to evaluate a two year project using NPV. There is uncertainty as to the level of sales (in units) in each of the two years: Year 1 Sales units Probability Year 2 Sales units Probability 10,000 0.3 8,000 0.2 10,000 0.8 15,000 0.7 20,000 0.6 10,000 0.4 Required: (a) On what expected level of sales in Year 1 and 2 should Harry base his NPV calculation? (b) Imagine that the project outlay is £230,000 and each unit sold has a contribution of £10. If Harry’s cost of capital is 10%, what is the project’s…
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Revenues generated by a new fad product are forecast as follows: Year Revenues 1 $50,000 2 35,000 3 30,000 4 20,000 Thereafter 0 Expenses are expected to be 40% of revenues, and working capital required in each year is expected to be 20% of revenues in the following year. The product requires an immediate investment of $60,000 in plant and equipment. a. What is the initial investment in the product? Remember working capital. b. If the plant and equipment are depreciated over 4 years to a salvage value of zero using straight-line depreciation, and the firm’s tax rate is 20%, what are the project cash flows in each year? Assume the plant and equipment are worthless at the end of 4 years. c. If the opportunity cost of capital is 10%, what is the project's NPV? d. What is the project IRR?
course name Transportation Iskandar Malaysia in Johor is planning to introduce a new set of public transit system. Thus, if the vehicle operating costs is RM 0.10/km, travellers value their time at RM 3.00/hour, and the average cost of a traffic accident is RM 25,000, what is the benefit-cost ratio? Assume an interest rate of 9% per annum.
Q4 Cuci Kereta Sdn Bhd is evaluating two alternatives: the purchase of an automatic washing system or a semi-automatic washing system. One person will operate the automatic washing machine. On the other hand, the semi-automatic washing system require two workers to operate the system. Table 4 shows the system information. The company estimate 3,000 cars can be washed per year with expected rate of return of 10% per year Evaluate this option with suitable graph for recommendation to the company whether to purchase an automatic or a semi-automatic washing system. Table 4: System Information Semi-automatic Washing System Automatic Washing System First Cost 110,000 20,000 (RM) Salvage (RM) 25,000 3,000 Life 10 (years) Labour Cost 10 10 (RM per hour per person) Wash Car 12 (units per hour) 4,000 for first year and increase 2,000 every year Maintenance Cost 1,500 (RM per year)
DLR Rheosystems makes high performance rotational viscometers capable of steady shear and yield stress testing in a rugged, compact footprint. How much could the company afford to spend now on new equipment in lieu of spending Php 200 000 one year from now and Php 300 000 three years from now, if the company uses an interest rate of 15 % per year? a.) Php 236 715.33 b.) Php 371 176.91 c.) Php 288 621.15 d.) Php 345 440.06
1
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Suppose that Kittle Co. is a U.S. based MNC that is considering setting up a subsidiary in Singapore. Kittle would like this subsidiary to produce and sell guitars locally in Singapore, and needs assistance with capital budgeting. The duration of this project is four years, with an initial investment of S$10,000,000 (Singapore dollars). The required rate of return is expected to be 15.00% for all four years of the project. _____________________________ Year 0 Year 1 Year 2 Year 3 Year 4 Cash Flows to Parent, excluding Salvage Value $2,500,000 $2,500,000 $3,400,000 $3,800,000 Initial Investment $10,000,000 Which of the following most closely approximates the break-even salvage value? $2,938,788 $2,671,625 $2,137,300 $2,404,463
A firm evaluates all of its projects by applying the IRR rule. If the required return is 14 percent, should the firm accept the following project? Input area: Required Return Year 0 Year 1 Year 2 Year 3 (Use cells A6 to B10 from the given information to complete this question.) Output area: 14% ($41,000) $20,000 $23,000 $14,000 IRR

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