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3. An investment opportunity has the cash flows which are given below. Years Cash Flow 15000...
year cash flow 0 -15000 1 +12000 2 +6000 3 -8000 4 +4000 5 +12000 use...
year cash flow 0 -15000 1 +12000 2 +6000 3 -8000 4 +4000 5 +12000 use descartes and norstrom rules to define the characteristic of internal rate of return this investment according to Descartes rules according to Norstrom criteria B) find external rate of return of the investment opportunity if the external investment %10
Year Investment Cash Flow Unrecovered investment 1 56000 2000 2 6000 4000 3 8000 4 9000...
Year Investment Cash Flow Unrecovered investment 1 56000 2000 2 6000 4000 3 8000 4 9000 5 12000 6 10000 7 8000 8 6000 9 5000 10 5000 Please, can you show me the process to compute the Unrecovered interest, and the payback period? Please, would you like to break it down? I am really confused. thank you advance.
Q1) A proposed overseas expansion has the following cash flows:- Year Cash Flows Net income 12000...
Q1) A proposed overseas expansion has the following cash flows:- Year Cash Flows Net income 12000 Cost of asset Accumulated 200 0 Depreciation | | 2000 | Required Rate of Return 4000 Required Payback 4 years 50 10% 60 70 200 6000 Cost of Capital 8000 12% The required rate of return of 10%. The required payback is 4 years. Assume we require an average accounting return of 25% Required: 1. Calculate the payback period 2. Calculate the discounted payback...
An investment opportunity has cash flows of $5,000, $6,000, and $10,000 in 1, 2, and 3...
An investment opportunity has cash flows of $5,000, $6,000, and $10,000 in 1, 2, and 3 years, respectively. If your relevant interest rate is 15%, what is the maximum amount you would be willing to invest today? DO NOT USE DOLLAR SIGNS OR COMMAS IN YOUR ANSWER. ROUND TO THE NEAREST DOLLAR (e.g., 8000 NOT $8,000).
You are considering an investment project with the cash flows of -400 (the initial cash flow),...
You are considering an investment project with the cash flows of -400 (the initial cash flow), 700 (cash flow at year 1), -200 (cash flow at year 2). Given the discount rate of 12%, compute the Modified Internal Rate of Return (MIRR) using the discountingapproach. 31.91% 25.13% 27.55% 29.71%
1.) An investment in manufacturing equipment yields the following cash flows for 8 years. At the...
1.) An investment in manufacturing equipment yields the following cash flows for 8 years. At the end of the 8th year the equipment can be sold for $15,000. Assuming an interest rate of 14% (compounded annually), how much would you be willing to invest in this manufacturing equipment? C=? I=2000 I=2000 I=2000 I=2000 I=1000 I=1000 I=1000 I=1000 L=$15,000 0 1 2 3 4 5 6 7 8 C: Cost, I: Income, L: Salvage Value 2.) Suppose that the nominal annual...
Consider the following 5-years investment table of Agus's cash flow with required return rate j=11% (RRR)....
Consider the following 5-years investment table of Agus's cash flow with required return rate j=11% (RRR). Discounted is a discount factor based on RRR. Contribution is amount of money that Agus paid to start the business (investment). Whereas, return is amount of money that Agus received from the investment. Furthermore, PV Contrib is present value of Contribution based on RRR, then Net Cash Flow is Return minus Contribution. Moreover, Discounted Cash Flow is present value of Net Cash Flow based...
A company that makes clutch disks had the cash flows shown below for one department with...
A company that makes clutch disks had the cash flows shown below for one department with a MARR of 25%. Calculate (a) the internal rate of return (Hint: 20%<=i*<=22%) and (b) the composite rate of return (Hint: 18%<=i’<=20%), using a reinvestment rate of 20% per year. Should the company continue to make clutch disks? Year Cash flow, $ 0 6000 1 -10000 2 12000 3 -10400
21 0 Required information A new advertising campaign by a company that manufactures products that apply biometric, surveillance, and satellite technologies resulted in the cash flows shown. Part...
21 0 Required information A new advertising campaign by a company that manufactures products that apply biometric, surveillance, and satellite technologies resulted in the cash flows shown. Part 3 of 3 Year Cash Flow, $1000 2000 10 points 0 -4000 3000 2000 eBook Print Calculate the unique external rate of return values using the ROC method with an investment rate of 30% per year. References The external rate of return using the ROIC method is-%.
21 0 Required information A...
8. An investor has the opportunity to invest in the following project. The cash flows over a period of 5 years are show...
8. An investor has the opportunity to invest in the following project. The cash flows over a period of 5 years are shown in the table below Calculate the Internal Rate of Return (IRR) Use values of 7 % and 9 % as trial values Year Receipts (AED) Payments (AED) 400,000 Net Cash Flow (AED) (400 000) 100,000 100,000 100,000 100,000 100,000 0 1 100,000 100,000 100,000 100,000 100,000 2 3 4 5
Q1) A proposed overseas expansion has the following cash flows:- Year Cash Flows Net income 12000 Cost of asset Accumulated 200 0 Depreciation | | 2000 | Required Rate of Return 4000 Required Payback 4 years 50 10% 60 70 200 6000 Cost of Capital 8000 12% The required rate of return of 10%. The required payback is 4 years. Assume we require an average accounting return of 25% Required: 1. Calculate the payback period 2. Calculate the discounted payback...
Consider the following 5-years investment table of Agus's cash flow with required return rate j=11% (RRR). Discounted is a discount factor based on RRR. Contribution is amount of money that Agus paid to start the business (investment). Whereas, return is amount of money that Agus received from the investment. Furthermore, PV Contrib is present value of Contribution based on RRR, then Net Cash Flow is Return minus Contribution. Moreover, Discounted Cash Flow is present value of Net Cash Flow based...
21 0 Required information A new advertising campaign by a company that manufactures products that apply biometric, surveillance, and satellite technologies resulted in the cash flows shown. Part 3 of 3 Year Cash Flow, $1000 2000 10 points 0 -4000 3000 2000 eBook Print Calculate the unique external rate of return values using the ROC method with an investment rate of 30% per year. References The external rate of return using the ROIC method is-%.
21 0 Required information A...
8. An investor has the opportunity to invest in the following project. The cash flows over a period of 5 years are shown in the table below Calculate the Internal Rate of Return (IRR) Use values of 7 % and 9 % as trial values Year Receipts (AED) Payments (AED) 400,000 Net Cash Flow (AED) (400 000) 100,000 100,000 100,000 100,000 100,000 0 1 100,000 100,000 100,000 100,000 100,000 2 3 4 5
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