new product cost estimated $200,000 per year for 6 years. Annual profits of the product estimated $92,000 will begin the 5th year and each year will increase $20,000 + $20,000f  through year 18. Compute the present value using an interest rate of 20%. Show a cashflow diagram.

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: 9 Development costs of a new product are estimated to be $100,000 per year for five years.  Annual…

A: The present value denotes the actual amount of profit a project can make by discounting the cash…

Q: What is the present value of end-of-year cash flows of $1,000 per year, with the first cash flow…

A: Present value (PV) is the worth of amount today that is expected to be received in future at…

Q: The maintenance on a machine is expected to be P155 at the end of the first year and is expected to…

A:

Q: Calculate the present worth for a CNC machining center that has an initial cost of $75,000, a life…

A: Present worth of the machine is the present value of all future cash outflow in today's dollar…

Q: An investment is expected to generate net operating cash inflows of $25,000 per year for each of…

A: Internal rate of return is the rate at which present value of cash outflows is equal to present…

Q: Find the total present worth of a series of cash flows with an annual interest rate of 2% per year.…

A: Annual interest rate = 2% Initial cash flow = 6628 Benefit at year 3 = 13477 Salvage value at year 4…

Q: An investor is told that the following cash flow profile has a present value of $11,000 assuming…

A: The concept of time value of money will be used here. To determine the present value of a cash flow…

Q: Calculate the present worth of a geometric gradient series with a cash flow of $40,000 in year 1 and…

A: Interest Rate = 10% Annual Increase = 6% Initial Cash Flow = 40,000 Time Period (N) = 10 years

Q: if total assets increased $ 20,000 during a period and total liabilities increased $12,000 during a…

A: Change in owner's equity  = Change in total assets - Change in total liabilities

Q: Calculate the present value of the following stream of cash flows: cash flows of $7,000, quarterly…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: ssume that the amount of initial investment is $350,000 and the scheduled receipts are $250,000 in…

A: Net Present Value is the difference between the present value of cash inflows and cash outflows.

Q: your company is considering a project with cash flows of $12450, $19270 and $22390 at the end of…

A: Present value is a concept used in making valuations of financial modeling, stocks, bond pricing,…

Q: Draw the necessary cash flow diagrams. Prob#1: Determine the present worth of an annual payment of…

A: Annual Payment = 4500   Inputs for Question 1.  Beginning of year N = 12 years Interest Rate = 8%…

Q: Construct a cash flow diagram for the following cash flows: $10,000 outflow at time zero, $3000 per…

A: Outflow at time 0= ($10,000) Inflow in years 1 through 5= $3000 per year Time= 5 years Rate= 5%…

Q: Determine the present worth of a maintenance contract that has a cost of $30,000 in year 1 and…

A: The above is a case of Uniform Gradient Present Worth or UGPW. This is also known as Discrete…

Q: A project has an initial investment of $1,506. The cash inflows in the next four years are $392,…

A:

Q: Construct a cash flow diagram to find the present worth of a future outflow of $40,000 in year 5 at…

A: Present Value of cash outflow = Future Outflow / (1+Interest%)^Time Period Present Value of cash…

Q: A series of cash flows starts at $1,000 at the end of the first year and increases each year for the…

A: Future value of cash flow includes the deposit and plus interest accumulated over the period of…

Q: An investment is expected to produce the following annual year-end cash flows:year 1: $5,000 year 4:…

A: Net Present Value (NPV) is the calculation of present value of net cash inflows from the investment…

Q: Development costs of a new product are estimated to be $100,000 per year for five years.  Annual…

A: Net Present value : It is the net of the present value of cash inflows and cash outflows. Formula to…

Q: mated to

A: And it is increasing by 13% is r  And the present value of the project or investment = Identical…

Q: What is the present value of end-of-year cashflows of $1,000 per year, with the first cashflow…

A: Present value is the value today of future cash flows discounted to present terms using a specified…

Q: A capital investment has an initial cost of $566,000. At the end of each of the next 9 years, it is…

A: The present value of the initial investment, annual cash inflows, and annual cash flow are computed…

Q: present value

A: Present Value is the computed amount today of either a single sum amount or a series of payments to…

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.