eighing the pros and cons of purchasing a new printer. The equipment would cost PHP900 and enhance cash flows by PHP500 in year one and PHP800 in year three. In year two, the cash flows remain unchanged. What is the present value of the cash flows from the investment if the interest rate is 12 per cent? Group of answer choices
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3. A writer is weighing the pros and cons of purchasing a new printer. The equipment would cost PHP900 and enhance cash flows by PHP500 in year one and PHP800 in year three. In year two, the cash flows remain unchanged. What is the
Group of answer choices
PHP155.59
PHP1015.85
PHP1076.56
PHP346.78
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- 2. A firm considers investing in a project. In Year 0 it needs to make an investment of $50,000. If it is expected to earn $50,000, $60,000, $70,000 in years 1,2,3 respectively, decide whether the firm should make the investment. Consider the required rate of return of 8%. You may use xis to make calculations. Make recommendations for both cases.Use the following data to answer questions (a) to (d). A company is considering the purchase of a copier that costs RM 50,000. Assume the required rate of return is 10% and the following is cash flow schedule: Year 1: RM 20,000 Year 2: RM 30,000 Year 3: RM 20,000 What is the project’s payback period? What is the project’s NPV? What is the project’s IRR? What is the project’s profitability index (PI)?Explain the importance of studying time value of money. Case study a. Let's say your friend offer simple investment. You are planning to buy an asset for RM 335. This investment is very safe. You would sell off the asset in three years for RM 400. You know you could invest RM 335 elsewhere at 10 percent with very little risk. What do you think of the proposed investment?
- You would like to invest in the following Project: Year Cash Flow 0 $-55,000 1 30,000 2 37,000 Your boss insists that only projects that return $1.10 in today's dollars for every $1 invested can be accepted. The discount rate is 10%. Based on this criteria, should you accept the Project? Why?Q) Perlis state government decided to invest for a Harumanis mango project at Kuala Perlis, Perlis and expected total revenue of RM12.0 million after 5 years. Calculate the investment cost required if the Minimum Attractive Rate of Return (MARR) value is 12% per year. Illustrate the Cash Flow Diagram (CFD).MIA Q.1) Your company expects to earn at least 18 percent on its investments. You have to choose between two similar projects (A&B). Below is the cash information for each project. Which of the two projects would you fund if the decision is based only on financial information by using net present value model? if you use payback model which project you will choose? show your calculations? Year 0 1 2 Outflow 225000 190000 0 0 Inflow C.f DE P.V Year Outflow Inflow c. f = R-C C. F D. F P.V 3 30000 0 150000 220000 -225000-190000 150000 10000 - (1+k)" 0 300000 0 5 7 30000 0 30000- 215000 205000 197000 100000 215000 175000 197000 70000 0.847 0.718 3.669 0.516 0.437 0.37 0.314 -225000-160930 107700 115710 110 94076475 72890 219743 7: Project A 4 0 1 2 100000 0 P.V of of WPV = 5PV Project B 3 4 50000 0 50000 150000 250000 250000 200000 250000 -50000 150000 300000 1 0-8470-718 0.609 0.516 -3.000.0042356107700 اسمان M 6 0 wp-v-11975 11976 15 7 50000 30000 200000 180000 120000 150000 180000 90000…
- Fintech is contemplating two different projects and decides to perform a financial analysis to determine which is more financially lucrative. Project A and B have the cash flows as shown below. Fintech requires a rate of return of 10% and an inflation rate of 4%. Compute the payback in years and the net present value (NPV) for both projects and offer advice as to the best course of action. Year E250,000- -E400,000 €75,000 €125,000 €155,000 €230,000 3 E200,000 €288,000 4 €175,000 €265,000 E160,000 €225,000The management of Ryland International Is considering Investing in a new facility and the following cash flows are expected to result from the investment: A. What Is the payback period of this uneven cash flow? B. Does your answer change if year 6s cash inflow changes to $920,000?The management of Kawneer North America is considering investing in a new facility and the following cash flows are expected to result from the investment: A. What is the payback period of this uneven cash flow? B. Does your answer change if year 10s cash inflow changes to $500,000?
- Below are four cases that you will have to solve using Excel spreadsheets. 1st case The company COMERCIAL SA has two investment alternatives that present the following information: PROJECT A B It is requested Initial investment. $25,000 $22,000 Cash flows year 1 1. Determine the internal rate of return. 2. Determine the present value. $7,000 $12,000 The discount rate for the project will be 10% and the MARR will be 20%. 3. Determine the recovery period. 4. Define which is the most viable project. Year 2 cash flows $15,000 $8,000 Year 3 cash flows $18,000 $12,000A) Consider the following two mutually exclusive projects: Cash flow (A) -RM300,000 20,000 50,000 50,000 390,000 i) ii) Year 0 1 2 3 4 Cash flow (B) -RM40,000 19,000 12,000 18,000 10,500 If you apply the payback criterion, which investment will you choose if you set the maximum payback period of 3 years? If you apply the internal rate of return (IRR) criterion, which investment will you choose, if you require a 15% return?You have been asked to analyze two investment proposals, A and B. Project A’s cost is RM80,000 and the project’s B cost is RM100,000. Cash flows for both projects are as follows, and the required rate of return is 10%. Year Cash Flows (RM) A Cash Flows (RM) B 1 20,000 25,000 2 25,000 25,000 3 20,000 25,000 4 25,000 25,000 5 30,000 25,000 Based on the above information, calculate for A and B, the: 1. Payback period 2. Net Present Value (NPV) 3. Internal Rate of Return 4. Discounted payback