Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4 0 p ) The following expenses and sales revenues are estimated for a new project. Land cost = 0 . 8 5 1 0

40p) The following expenses and sales revenues are estimated for a new project.
Land cost =0.85106s
Fixed capital investment at the end of the year: 2.710$; at the end of the year: {:210$)
Working capital =3.210S(commissioning: 2 at the end of the year)
Production cost (without depreciation)=1.2510S? year
Sales revenues =4.810S? year
Taxation rate =,%35
Project life =11 years after commissioning
Discount (interest) rate =9.5% per annum
Scrap value =0.3510S
Depreciation method = MACRS
For the project, (a) net present value, (b) present value ratio and (c) reduced payback period
Iniaviniz:
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Codes Of Finance

Authors: Vincent Antonin Lépinay

1st Edition

0691151504, 978-0691151502

More Books

Students also viewed these Finance questions

Question

You have

Answered: 1 week ago