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Can you just help me with below homework question, Keep your answer short and easy to understand :
The cash flows of 2 machines are given below.
Make the necessary analyzes using the Kil and Ki2 methods.
The cost of capital is 30%. Which machine should be selected ? why?
A -750 300 100 150 1800 600
B -750 350 400 500 -950 600
Step by step
Solved in 4 steps with 2 images
- You are given three investment alternatives to analyze. The cash flows from these three investments are as follows: Investment End of Year A B C 1 $ 11,000 $ 16,000 2 11,000 3 11,000 4 11,000 5 11,000 $ 11,000 6 11,000 48,000 7 11,000 8 11,000 9 11,000 10 11,000 16,000 (Click on the icon in order to copy its contents into a spreadsheet.) Assuming an annual discount rate of 15 percent, find the present value of each investment. Question content area bottom Part 1 a. What is the present value of investment A at an annual discount rate of 15 percent? $ enter your response here (Round to the nearest cent.)Calculate an IRR using an iterative technique. (Hint: Start by guessing 15%.) A project has the following cash flows C0 C1 C2 C3 ($700) $200 $500 $244 I'm not really understanding the IRR concept. please take the time to explain it to me and not just posting an Excel worksheetSolve for each problems. Show your solution legible and neatly. Write the question, the given(also what is the given?), what to find and a cash flow diagram. Answers should be in 2 decimal places, unless stated otherwise. Solution should be hand-written. Question can be hand-written or type-written. Answer should be in 2 decimal places. A sum of P5,000 was invested now and left for 6 years, at which this time the principal is withdrawn. The interest that has accrued is left for another 6 years. If the effective annual interest rate is 8%, what will be the withdrawal amount at the end of the 12th year?
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- You have the following cash flows: Year 0 Net Cash Flow, $ -6,000 1 -5,000 2 +12,000 3 -2,000 +6,000 For these cash flows, it has already been determined there may be more than one positive root . Calculate the EROR using the MIRR method with i 16% and is-8%. HINT: Draw the Cash Flow diagram. You must show the mathematical setup and detailed calculations you used to calculate your EROR to two decimal points by hand. An Excel solution is not sufficient.My Question - Please leave the calculations of the Pv factor six digits after the decimal point for example. 0.925925 My Question: Can you provide the net present value of the New and old backhoes including the salvage value. My Question- Can you also show the math equation for the calculations in the out flow and inflows of the New and Old Back hoes for example. Value of Cash flows and Outflows of the New and Old Backhoes= (...,... + ...,... +etc...... My Question: Can you provide in detail the profitability index of New and Old backhoes My Question: Can you provide the pay back period fro the New and old Backhoes. The following information is available to use in deciding whether to purchase the new backhoes or old backhoes. Using the 8% Present Value of an Annuity of 1 Old Backhoes New Backhoes Purchase cost when new $90,000 $200,000 Salvage value now $42,000 Investment in major overhaul needed in next year $55,000…Consider the following cash flows: Co -$27 C₁ +$ 24 C2 +$ 24 C3 +$ 24 C4 -$46 a. Which two of the following rates are the IRRs of this project? Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answers and double click the box with the question mark to empty the box for a wrong answers. Any boxes left with a question mark will be automatically graded as incorrect. 2.5% ? 33.9% ? 14.3% ? 33.9% ? 40.0% b., c., and d. What is project NPV if the discount rates are 1%, 18%, and 36%? Note: Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answers to 3 decimal places. b. C. Discount Rate 1% 18% 36% d. NPV