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initial invest 24000 at time 0 generate inflow 5000 per 8 year 1st inflow occuring in 1 year time
what is the % IRR
plz sole ?5,000 x annuity df for 8 years = 24,000
So 8 year annuity d.f. = 24,000 / 5,000 = 4.800
If you look in the annuity tables along the 8 year row, then the rate of interest that gives 4.800 is 13%
hello sir
a company has 3 projects with the following initial cost and npv
Project A : initial cost 20000 ; NPV 2000
Project B ; intial cost 30000 ; NPV 2400
Project C ; initial cost 10000; NPV 1200
capital available for lim,ited 40000
if project are divisible what is the maximum NPV can be acheved ?
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I think the answer is 4000?
100% project C, same with Project A which means only 10,000 left for project B so only 800 profit therea payment has agreed to lease for 8 yr with an equal annual payment payable at start of each yr
npV of agreement 52000 cost of capital 10%
what is a annual lease payment ?machine cost 7200
runing cost as follows
y1 7200
y2 9600
y312000
estimated scrap value as follows
y1 24000
y2 16600
y3 9600
cost of capital is 10%
what is annual equlent cost if replace machine every 2 yr /For the lease problem:
Suppose the lease payment is X per year.
The first payment is immediate (it is paid at the start of the year), so the PV is X.
There are then 7 payments. The PV of these is 4.868X (4.868 is the 7 year annuity factor).
So the total PV is X + 4.868X = 5.868XThis must be equal to 52,000
So X = 52,000 / 5.868 = $8862
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