Question
1) The firm Pronto plans to acquire trade pavilions and obtain permission to carry out trade activities, while the initial costs are estimated at 510
1) The firm "Pronto" plans to acquire trade pavilions and obtain permission to carry out trade activities, while the initial costs are estimated at 510 thousand USD. During the first year, it is planned to invest 200 thousand USD additionally. (in the increase in working capital and reconstruction). The expected income is 142 thousand USD. in year. The liquidation value of the pavilions (including the retail space) in 10 years is estimated at 330 thousand USD.Required: to determine the indicators of economic efficiency of investments, if the project discount rate is 13%.2) Information for calculating the efficiency of an investment project:1) investments by years:1st year - 90.0 thousand USD;2nd year - 80.0 thousand USD;3rd year - 90 thousand USD;2) net profit by years:4th year - 85.0 thousand USD;5th year - USD 125.0 thousand;6th year - 200.0 thousand USD;7th year - 200.0 thousand USD.Work order:1. The WACC model is used to calculate the discount factor.Investment project financing:- income tax rate - 20%;- own share capital is 40%, cost - 20%;- short-term loan - 60%, cost - 15%.2. Taking into account the calculated discount coefficient, the indicators of the investment project efficiency are determined: NPV, PI, PP (dynamic and statistical), IRR, ROI.3. Show graphically the payback period of the project.4. Show graphically IRR.5. Build a cash flow statement taking into account the cost of equity and debt capital. To finance the project, a credit line is opened in the amount required for annual investment. Loan repayment from the 4th year in equal installments. 1. The WACC model is used to calculate the discount factor.Investment project financing:- income tax rate - 20%;- own share capital is 40%, cost - 20%;- short-term loan - 60%, cost - 15%.2. Taking into account the calculated discount coefficient, the indicators of the investment project efficiency are determined: NPV, PI, PP (dynamic and statistical), IRR, ROI.3. Show graphically the payback period of the project.4. Show graphically IRR.5. Build a cash flow statement taking into account the cost of equity and debt capital. To finance the project, a credit line is opened in the amount required for annual investment. Loan repayment from the 4th year in equal installments.
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