Ah Beng Corporation is considering investing $490,000 in a project. The life of the project would...
Ah Beng Corporation is considering investing $490,000 in a project. The life of the project would be 7 years. The project would require additional working capital of $34,000, which would be released for use elsewhere at the end of the project. The annual net cash inflows would be $123,000. The salvage value of the assets used in the project would be $49,000. The company uses a discount rate of 11%. (Ignore income taxes in this problem.) Compute NPV
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Answer - NPV = $129577.79
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Ah Beng Corporation is considering investing $490,000 in a
project. The life of the project would...
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29. DuCo is considering investing $500,000 in a project. The life of the project would be 9 years. The project would require additional working capital of $50,000, which would be released for use elsewhere at the end of the project. The annual net cash inflows would be $150,000. The salvage value of the assets used in the project would be $5,000. The company uses a discount rate of 17%. The Present Value of $1 at this rate is 0.243 and...
2. Mattice Corporation is considering investing $640,000 in a project. The life of the project would be 6 years. The pr...
2.
Mattice Corporation is considering investing $640,000 in a project. The life of the project would be 6 years. The project would require additional working capital of $24,000, which would be released for use elsewhere at the end of the project. The annual net cash inflows would be $158,000. The salvage value of the assets used in the project would be $34,000. The company uses a discount rate of 18%. (lgnore income taxes.) Click here to view Exhibit 13B-1 and...
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Question 1 [15 Marks] Majimbos (Pty) Limited is considering a project that would require an initial...
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Trovato Corporation is considering a project that would require an investment of $73,000. No other cash outflows would be involved. The present value of the cash inflows would be $99,280. The profitability index of the project is closest to (Ignore income taxes.):
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2.
Mattice Corporation is considering investing $640,000 in a project. The life of the project would be 6 years. The project would require additional working capital of $24,000, which would be released for use elsewhere at the end of the project. The annual net cash inflows would be $158,000. The salvage value of the assets used in the project would be $34,000. The company uses a discount rate of 18%. (lgnore income taxes.) Click here to view Exhibit 13B-1 and...
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Olinick Corporation is considering a project that would require an investment of $284,000 and would last for 8 years. The incremental annual revenues and expenses generated by the project during those 8 years would be as follows (Ignore income taxes.): Sales Variable expenses Contribution margin Fixed expenses: $239,000 23,000 216,000 Salaries Rents Depreciation 26,000 39,000 34,000 99,000 $117,000 Total fixed expenses Net operating income The scrap value of the project's assets at the end of the project would be $16,000....
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