Undiscounted payback period = Initial cost / Cash flow each year
= 100000 / 10000
= 10 yrs
12. An investment at 15% of $100,000 produces an after tax cash flow of $10,000 per...
What is the undiscounted cash flow in the final year of an investment, assuming: $10,000 after-tax cash flows from operations, the fully depreciated machine is sold for $1,000, the project had required $2,000 in additional working capital, and a 35% tax rate?
5.) An investment costing S50,000 promises an after tax cash flow of $18,000 per year for 6 years. a. Find the investment's accounting rate of return and its payback period. b. Find the investment's net present value at a 15 percent discount rate C. Find the investment's internal rate of return. d. Assuming the required rate of return on the investment is 15 percent, which of the above figures of merit indicate the investment is attractive? Which indicate it is...
What is the simple (undiscounted) payback period in years for a $100,000 project with expected cash flows of $19,000 each of the first two years and $10,000 for each year after.
2. A firm has well spend -10,000 today for a project. The after tax cash flow of the project will be 4,000 for the next three years. The firm's cost of capital is 10%. a. What is the project's IRR? (Show your work.) b. What is the project's NPV? (Show your work.) c. What is the project's payback period? (Show your work.) d. Should the project be accepted or rejected? WHY
6. Given the following, what is the after-tax cash flow? Assume No Cap. Ex and no principal payments Cost of goods 100 Depreciation and Amortization 35 Revenues 150 Selling, General, and Admin Exp 5 Tax rate 30% After cash flow = Use this data for the next two problems Sales $100.00 COGS 0.2 General and Admin $15.00 Depreciation $35.00 Interest Expense $35.00 Tax rate 0.25 7. Is the company profitable and by how much? (yes/ no) 8. Does the company...
ambrin Corp. expects to receive $10,000 per year for 15 years and $11,500 per year for the next 15 years. What is the present value of this 30 year cash flow? Use an 12% discount rate.
Please consider two investment alternatives. Each investment requires a $100,000 initial cash payment. The net. ome of each investment is as follows: Investment A: $110,000 each year for three years Investment B: $60,000 in year 1, $21 Factors to consider: inc Present Value of $1 at Compound Interes Year 6% 10% 12% 15% 20% 0943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621...
Part A A $400,000 investment in a surface mount placement machine produces pre-tax revenue of $37050/yr for 10 years, at which time the SMP machine has a salvage value of $100,000. Based on a 25% income tax rate, a 12% after tax MARR & SLN depreciation what will, be the AT (After Tax Present worth of the investment? 168420.43 Part B Brian a Temple graduate suggests using a 6% bond issue to pay for the investment from the previous example,...
ABC Corporation is considering an investment of €375 million with expected after-tax cash inflows of €115 million per year for seven years and an additional after-tax salvage value of €50 million in Year 7. The required rate of return is 10 percent. What is the investment’s NPV? IRR? MIRR? PI? Payback Period? Also upload your excel files showing your work.
a. An initial outlay of $10,000 resulting in a free cash flow of $1,8841 at the end of each year for the next 11 years b. An initial outlay of $10,000 resulting in a free cash flow of $2107 at the end of each year for the next 20 years c. An initial outlay of $10,000 resulting in a free cash flow of $1164 at the end of each year for the next 14 years d. An initial outlay of...