Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Calculate payback period, profitability index, internal rate of return and annual rate of return for the following data Sencitivity nalveis with Year 5 cellino nrice

Calculate payback period, profitability index, internal rate of return and annual rate of return for the following data
image text in transcribed
image text in transcribed
image text in transcribed
Sencitivity nalveis with Year 5 cellino nrice of Nelta 20 is Sensitivity Analysis with cost of capital as 12% After tax salvage value Book value of Matrix after 5 years After tax salvage value 5000 Incremental terminal salvage cashflow 58000 COSTISAMINGS IN XIAR 1 Labour (10%$303550)5250 Electricity (10%$5.62524750)4725 NNNUAL CASITOLW YEAR 0 1 35000 Initial Cashflow Savings in labour Savings in electricity Maintenance cost of Matrix 750 Maintenance of Delta A390 Annual interest cost(6%+140000) Before tax increase in profit After tax increase in profit Incremental depreciation tax shield =700030% Incremental Operating Cashflow Terminal incremental salvage cashflow Payment of principal of loan taken Total Terminal Cashflow Net Cashflow Discount Factor 12%N=5 \begin{tabular}{|ccccccrr} 54600 & 6702.5 & 6230 & 8557.5 & 5285 & 77187.5 & \\ & 0.8029 & 0.7972 & 0.7115 & 0.0355 & 0.5074 & SUM \\ \hline 54600 & 5984.662 & 4966.556 & 6091.229 & 3358618 & 43796.188 & 31204.877 \end{tabular}

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

Principles Of Corporate Finance

Authors: Richard Brealey

10th Global Edition

0071314172, 9780071314176

More Books

Students also viewed these Finance questions