Assignment 2R Group FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Cut Times New Ro-12 A A Wrap Text Percentage Copy Paste BIU- Format Painter A- HU E Merge & Center $ - % 9 +.0 00 00 9.0 Clipboard IA Font Alignment PM Number E18 fx 12% A B C D E F G H 1 2 A new start up company has contemplated investing $265.000 in new equipment. 3 Their analysis has shown that this new machinery will generate the following cash flows: 4 5 Annual 6 Year Cashflow 7 1 $ 20.000 8 2 $ 30.000 9 3 $ 40.000 10 4 $ 40.000 11 5 $ 50.000 12 6 $ 60,000 13 7 $ 60,000 14 8 $ 80.000 15 9 $ 90.000 16 10 $ 90.000 17 18 The minimum rate of return that they want to earn is 19 20 12% Compute the present value? 21 Based on these projections, please calculate the following for this project: 22 Q1 11 marks 23 Q2 Compute the net present value? 1 mark 24 Q3 Compute the estimate for the IRR? 3 marks 25 Q4 Should the company proceed with this investment? 2 marks 26 Total 17 marks 27 28 Use Interest Rate Table to solve for asnwering QI 29 Cover Main READY C P