a. Present worth of the project = Annual Income * PVAF (12%, 5)
Present worth of the project = 30000 * 3.604776
Present Worth of the project = $108143.29 (answer)
NPV = $108143.29 -$100000 = $8143.29 (Additional Answer)
5. What is the present worth of a project that requires $100,000 investment now and generates...
What is the NPV of a project that requires a $100,000 investment at inception and generates $50,000 a year for years 1 through 3? Assume a required rate of return of 10%. A. $24,343 B. $50,000 C. $22,130 D. $37,565
What is the NPV of a project which reauires an initial investment od $100,000, generates cash flows kf $25,000, $50,000, $75,000, and $100,000 in years 1 through 4, then requires another investment of $50,000 in year 5? The required rate of return is 12%. A. $100,000 B. $29,116 C. $50,745 D. $79,116
A capital investment project requires an investment of £100,000 and has an expected life of four years. Annual cash flows, which occur evenly throughout 5 years amount to £45,000 per annum. The net present value of the project using a 12 percent discount rate is Select one: a. £33,732 b. £68,162 c. £62,225 d. £98,980 e. £28,162
2. A project requires an initial investment of $100,000 and installation cost of $20,000. The financial manager of the company expects this project will cut the direct production costs by $30,000 per year. For tax purposes the project can be depreciated straight-line over 5 years.. The company will pay insurance expense of $5,000 per year beginning with the installation of the machine. The salvage value of the machine is expected to be $15,000. If the company pays tax at a...
2. A project requires an initial investment of $100,000 and installation cost of $20,000. The financial manager of the company expects this project will cut the direct production costs by $30,000 per year. For tax purposes the project can be depreciated straight-line over 5 years.. The company will pay insurance expense of $5,000 per year beginning with the installation of the machine. The salvage value of the machine is expected to be $15,000. If the company pays tax at a...
2. A project requires an initial investment of $100,000 and installation cost of $20,000. The financial manager of the company expects this project will cut the direct production costs by $30,000 per year. For tax purposes the project can be depreciated straight-line over 5 years. The company the machine. The salvage value of the machine is expected to be $15,000. If the company pays tax at a rate of 20% and the opportunity cost of capital is 20%, is the...
2. A project requires an initial investment of $100,000 and installation cost of $20,000. The financial manager of the company expects this project will cut the direct production costs by $30,000 per year. For tax purposes the project can be depreciated straight-line over 5 years.. The company will pay insurance expense of $5,000 per year beginning with the installation of the machine. The salvage value of the machine is expected to be $15,000. If the company pays tax at a...
Find the MIRR for a project that requires $350,000 investment now and an additional $60,000 investment at year 10, has net positive cash flows of $55,000 per year for 20 years as well as a $70,000 salvage value at year 20. Use a financing rate of 8% and an investment rate of 12%. Answer: 12.72%
What is the internal rate of return for a project that requires an initial investment of $85,317 and then generates cash flows of $20,507 per year for 7 years? Round to the nearest whole %.
Develop a spreadsheet to determine the next present value or present worth of the following project: Investment: 170,000 Revenue/Savings: 32,000 Incremental Expense/Cost: 6,000 Salvage Value: 20,000 Project Life: 10 years MACRS Schedule: 7 years Tax Rate: 24% MARR: 12% Inflation: 3% Complete this on the basis of a real dollars basis rather than actual dollars. Is this a good investment to make? Year Percent 1 14.29% 2 24.49% 3 17.49% 4 12.49% 5 8.93% 6 8.92% 7 8.93% 8 4.46%