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Sir answer given in kaplan rk is 2667.
Trade payable after discount =456000*1*0.99*30/365=37105 sir why they multiply with 0.99?? In other qns on trade payables we are not doing this !!Walshey co has already decided to accept a project and is now considering how to finance it?
The asset could be leased over 4 yrs @ a rental of $36000 pa,payable @ the start of each yr.
Tax is payable @ 30%,one year in arrears. The post tax cost of borrowing is 10%
calculate the npv of the leasing option?
my ans:yr 0 1 2 3 4 5
lease (36000) (36000) (36000) (36000)tax savings 10800 10800 10800 10800
(36000) (36000) (25200) (25200) 10800 10800
df@10% 1 0.909 0.826 0.751 0.683 0.621
pv (36000) (32724) (20815.2) (18925.2) 7376.4 6706.8 ==(94381.2)
BUT the ans is (94406) why so?sir,
In kaplan text 1st qn on lease.Can you solve it using your method!that is using pv!I tried it but got it wrong!!Thank you so much sir!!!!For spending time to answer my silly questions.It’s so helpful!!
sir,
The qn is:
Merrily is considering investing $1000000 in a project which will produce the following annual outflows and inflows:
year 1 2 3
outflows($000) 1800 2500 1500
inflows($000) 2000 3000 2000
The cash flows which arise at the end of each year,are stated in current year terms.It is expected that outflows will rise by 3% pa and inflows by 2% pa.The money cost of capital of the merrily Division is 9%
??????????What is the NPV of merrily’s project t(to the nearest $000)?
Ans:$(61000)
i am confused with the charging the inflation to the inflows and outflows??
plss reply me!How 3000 become 3121 instead of 3060 how the inflation rates applied!!!Totally confused?
