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Flexible Suite Draft figures The table above shows the estimated outgoings and inflows for the project. All of the above estimates have been prepared in

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Flexible Suite Draft figures The table above shows the estimated outgoings and inflows for the project. All of the above estimates have been prepared in terms of present-day cost and prices. Assume that cash flows arise at the end of each period. In addition: - Revenues are expected to rise by 5% in price terms per year from year 1 (start of year 1). - Overheads are expected to rise by 5% per year from year 1 (start of year 1) - The cost of Freeze Module is expected to rise in line with inflation of 5% per year from the beginning of year 1 . - The costs of Technical Adviser, who has come from the US have not been taken into consideration in the forecast and are as follows: Technical Adviser (TA): Will be paid 120 per hour and expected number of hours for TA is 1,400hrs. The rate paid is expected to rise in line with inflation at 5% per year from year 2 and the number of hours is expected to reduce by 4% per year, every year from year 2 onwards. If Robot Limited invests in Flexible Suite, then the discount rate that would be required to assess the NPV would be 10%. Flexible Suite Draft figures The table above shows the estimated outgoings and inflows for the project. All of the above estimates have been prepared in terms of present-day cost and prices. Assume that cash flows arise at the end of each period. In addition: - Revenues are expected to rise by 5% in price terms per year from year 1 (start of year 1). - Overheads are expected to rise by 5% per year from year 1 (start of year 1) - The cost of Freeze Module is expected to rise in line with inflation of 5% per year from the beginning of year 1 . - The costs of Technical Adviser, who has come from the US have not been taken into consideration in the forecast and are as follows: Technical Adviser (TA): Will be paid 120 per hour and expected number of hours for TA is 1,400hrs. The rate paid is expected to rise in line with inflation at 5% per year from year 2 and the number of hours is expected to reduce by 4% per year, every year from year 2 onwards. If Robot Limited invests in Flexible Suite, then the discount rate that would be required to assess the NPV would be 10%

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