Required informetionThe annual revenues associated with several large apartment complexes are $200, $350, S50, $250, S425, and $50 foryears 0,1, 2,3, 4, and 5, respectively. Determine the cumulative cash flow and whether each cash flow series isconventional or nonconventional. The costs for years 0, 1,2.3.4, and 5, respectively, are provided in the problems. Whenthe cash fow is zero, assume it to be negative.YearCosts -1500-90-4085-60-90The cash flow is conventional1(Cick to select)The Cumulative onenonYearCumulativeCF.SnonconventionalYearCostS -1500 450-300-400-125-400The cash flow is (Cick t selectThe Cumulative cash flow isYearCumulativeCF. SYearCost.S5-400-20041500-450-300-500The cash flow is (Cick to select)The Cumulative cash flow isYearCumulativeCF,S1-4502-3003-400Year45Cost.S-1500-125-310The cash flow is (Cick to select)The Cumulative cash flow isYearCumulativeCF.S

Rate of Return is the annual income from an investment expressed as a proportion of the original…

Required informetion The annual revenues associated with several large apartment compleses are $200. S3s0, 550, S250, S425, and $50 for years 0.1.2.3, 4. and 5, respectively. Determine the cumulative cash flow and whether each cash flow series is conventional or nonconventional. The costs for years 0, 1, 2. 3, 4, and 5, respectively, are provided in the problems. When the cash flow is zero, assume it to be negative.

Required informetion The annual revenues associated with several large apartment compleses are $200. S3s0, 550, S250, S425, and $50 for years 0.1.2.3, 4. and 5, respectively. Determine the cumulative cash flow and whether each cash flow series is conventional or nonconventional. The costs for years 0, 1, 2. 3, 4, and 5, respectively, are provided in the problems. When the cash flow is zero, assume it to be negative.

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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Net Present Value Method, Internal Rate of Return Method, and Analysis for a Service Company The management of Advanced Alternative Power Inc. is considering two capital investment projects. The estimated net cash flows from each project are as follows: Biofuel Equipment Year 1 2 3 4 Year 1 2 The wind turbines require an investment of $513,900, while the biofuel equipment requires an investment of $1,093,320. No residual value is expected from either project. Present Value of an Annuity of $1 at Compound Interest 12% 0.893 1.690 2.402 3.037 3.605 3 4 5 Wind Turbines 6 7 8 9 10 Required: $180,000 180,000 180,000 180,000 6% 0.943 1.833 2.673 3.465 4.212 4.917 5.582 6.210 6.802 7.360 10% 0.909 1.736 2.487 3.170 3.791 4.355 4.868 5.335 $360,000 360,000 360,000 360,000 5.759 6.145 4.111 4.564 4.968 5.328 5.650 15% 0.870 1.626 2.283 2.855 3.353 3.785 4.160 4.487 4.772 5.019 20% 0.833 1.528 2.106 2.589 2.991 3.326 3.605 3.837 4.031 4.192 1a. Compute the net present value for each project. Use…
Prepare a cash flow analysis which includes: 1.the initial investment, 2. the annual after-tax operating cash flows, and 3.the terminal year non-operating cash flow in year 5.
Determine the MIRR using a financing rate of 16% and a reinvestment rate of 20% using the following cash flows: Year Cash Flow 0 1 2 3 4 5 6 7 -60,000 25,000 25,000 -17,000 35,000 35,000 35,000 35,000
20. Complete the following table: Purchase price of product Landcruiser Down payment Amount financed Number of monthly payments amount of monthly payments total of monthly payments total finance charge $83,900 $50,000 72 $618
Calculate the equivalent AW at i= 10% per year for the following net cash flow: Year Cash flow, $ -2,000 2. -2,000 3 -2,000 4 5,000 5,000 5,000 Select one: O a. 573.9 O b. 1,431.9 O c. 1,860.9 O d. 1,002.9 O e. 2.289.9
Assume a $260,000 investment and the following cash flows for two products: Year Product X Product Y 1 23 $ 90,000 80,000 81,000 40,000 $ 80,000 70,000 50,000 80,000 a. Calculate the payback for products X and Y. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Product X Product Y years years
Company Express S. A. asks you to construct cash flows for following three (3) investment projects, containing following information:PROJECT 1a. Sales (in ThCh$):- Year 1: 90,000- Year 2: 55,000- Year 3: 75,000- Year 4: 190,000b. Cost of sales is estimated at 53% of sales.c. Depreciation for year is ThCh$ 15,000 per period (period 1 to 3). In year 4 there is a sale of machinery that results in a gain on sale of non-current assets of ThCh$ 9,800. Total depreciation for year 4 is ThCh$ 12,500.d. Administrative expenses are equivalent to 17% of sales.e. In period 0 there is an investment of ThCh$ 58,000.f. There is credit financing of ThCh$ 32,000 which is amortized in equal parts of ThCh$ 8,000 per period with a financial expense of ThCh$ 3,700 per period.g. There is an investment in working capital of ThCh$ 24,000 in period 0, which is recovered in period 4.h. In period 4 there is an investment in land of ThCh$ 40,000.i. Income tax rate is 17%. Calculate: cash flow per period. Please…
Problem 1: Consider the following cash flows and assume i = 10% for all analyses purposes: Project Cash Flows A D -$2,500 -$7,000 -$5,000 -$5,000 1 $650 -$2,500 -$2,000 -$500 2 $650 -$2,000 -$2,000 -$500 $650 -$1,500 -$2,000 $4,000 4 $600 -$1,500 -$2,000 $3,000 5 $600 -$1,500 -$2,000 $3,000 $600 -$1,500 -$2,000 $2,000 7 $300 -$2,000 $3,000 8 $300 a) Compute the project balances for Projects A and D, as a function of project year b) Compute the future worth values for Projects A and D at the end of service life. c) Suppose that Projects B and C are mutually exclusive. Assume also that the required service period is eight years and that the company is considering leasing comparable equipment that has an annual lease expense of $3,000 for the remaining years of the required service period for both projects. Which project is the better choice?
Please do not give solution in image format thanku
Here are the expected cash flows for three projects: Cash Flows (dollars) Year 2 Project A C Year 8 -6,588 -2,580 -6,500 Year 1 +1,375 +1,375 +2,588 +1,375 +1,375 Year 3 +3,758 +2,758 +3,750 Year 4 8 +3,750 +5,758 a. What is the payback period on each of the projects? b. If you use the payback rule with a cutoff period of 2 years, which projects will you accept? c. If you use a cutoff period of 3 years, which projects will you accept? d-1. If the opportunity cost of capital is 12%, calculate the NPV for projects A, B, and C. Note: Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places. d-2. Which projects have positive NPVs? e. "Payback gives too much weight to cash flows that occur after the cutoff date." True or false? a. Payback period b. If you use the payback rule with a cutoff period of 2 years, which projects will you accept? c. If you use a cutoff period of 3 years, which projects will you accept?…

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