Solved A Project Requires An Initial Investment Of 73 000 Chegg View cat 1 key 1.pdf from management bm16004 at iit kanpur. project x requires an initial investment of rs 35,000 but is expected to generate revenues of rs 10,000, rs 27,000 , rs. 20,000, rs. 10,000. The company has to choose one of the following two projects, both requires an initial investment of rs,000 and income tax rate is 50%: year cash inflows before depreciation project x (rs.) project y (rs.) 1 4,200 4, 2 4,800 4, 3 7,000 4, 4 7,000 5, 5 2,000 10, assess the project by pay back period method.
Solved A Project Requires An Initial Investment Of 100 000 Chegg 6. subtract initial investment to get the npv. to calculate npv, add up all future cash flows and subtract the initial investment. an outcome of either a positive or negative value will result. npv = pv initial investment. for example = 535,888 500,000 = 35,888. the npv being positive indicates that the project is likely making profits. Where r is the discount rate and t is the number of cash flow periods, c 0 is the initial investment while c t is the return during period t. for example, with a period of 10 years, an initial investment of $1,000,000 and a discount rate of 8% (average return from an investment of comparable risk), t is 10, c 0 is $1,000,000 and r is 0.08. A project requires an initial investment of $225,000 and is expected to generate the following net cash inflows over its four years life: year 1: $95,000 year 2: $80,000 year 3: $60,000 year 4: $55,000. required: compute net present value of the project if the minimum desired rate of return is 12%. solution:. Initial investment. = equipment purchase price shipment and installation increase in working capital − disposal inflows. = $1,500 million $200 million ($200 million − $90 million) − $120 million. = $1,690 million. sccl needs $1,690 million to restart the project. it needs to estimate future cash flows from the project, and.
Solved A Project Requires An Initial Investment Of 389 800 Chegg A project requires an initial investment of $225,000 and is expected to generate the following net cash inflows over its four years life: year 1: $95,000 year 2: $80,000 year 3: $60,000 year 4: $55,000. required: compute net present value of the project if the minimum desired rate of return is 12%. solution:. Initial investment. = equipment purchase price shipment and installation increase in working capital − disposal inflows. = $1,500 million $200 million ($200 million − $90 million) − $120 million. = $1,690 million. sccl needs $1,690 million to restart the project. it needs to estimate future cash flows from the project, and. Determine the project's roce using: (a) initial capital costs (b) average capital investment. test your understanding 3 – roce. a project requires an initial investment of $800,000 and then earns net cash inflows as follows: in addition, at the end of the seven year project the assets initially purchased will be sold for $100,000. A company is considering in investing a project which requires an initial investment in a machine of $40,000. net cash inflows of $15,000 will be generated for each of the first two years, $5,000 in each of years three and four and $35,000 in year five, after which time the machine will be sold for $5,000.
Solved Intro A Project Requires An Initial Investment Of Chegg Determine the project's roce using: (a) initial capital costs (b) average capital investment. test your understanding 3 – roce. a project requires an initial investment of $800,000 and then earns net cash inflows as follows: in addition, at the end of the seven year project the assets initially purchased will be sold for $100,000. A company is considering in investing a project which requires an initial investment in a machine of $40,000. net cash inflows of $15,000 will be generated for each of the first two years, $5,000 in each of years three and four and $35,000 in year five, after which time the machine will be sold for $5,000.