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Hi i need help in Part 1 (d) how to calculate the revenue. Please help through formulas After producing household appliances for so many years,
Hi i need help in Part 1 (d) how to calculate the revenue. Please help through formulas
After producing household appliances for so many years, Milos wanted to expand the product range of EvTel by investing in PearTechnologies. He shared his idea with Oscar Martinez, the manage \begin{tabular}{|l|l|l|} \hline Oscarandhisteamdecidedonaninitialinvestmentof1,200,000TL.Theoperationwillstartthefollowingyear(Year1),andtheywillselltheinvestmentattheendofthe8thyearfor6,000,000TL.ForfurtherinformationrefertoTableA1andA-2. \\ \hline Report the cash flow in year 3. \\ \hline Report the internal rate of return of this investment. \\ \hline Report the money Evtel earned above their expectation in terms of today. (Round up to the next integer.) \\ \hline What should be the annual revenue in order for the NPV to be 200,000 TL? (This question is independent. Do not forget to change the annual revenue back to its original value.) \\ \hline Mert, a newly hired intern at Evtel, has been assigned the responsibility of analyzing various options. Help him with the calculations. All questions are independent. \\ \hline \end{tabular} \begin{tabular}{|l|r|} \hline \multicolumn{2}{|c|}{ Table A-1 } \\ \hline Initial Investment & 1,200,000.00 \\ \hline Annual Revenue & 260,000.00 \\ \hline Annual Costs & 175,000.00 \\ \hline Selling Price & 6,000,000.00 \\ \hline Expected Rate of Return & 25% \\ \hline \end{tabular} \begin{tabular}{|c|r|r|r|} \hline \multicolumn{4}{|c|}{ Table A-2 } \\ \hline Year & Revenue & Cost & \multicolumn{1}{|c|}{ Cash Flow } \\ \hline 0 & - & 1,200,000.00 & (1,200,000.00) \\ \hline 1 & 260,000.00 & 175,000.00 & 85,000.00 \\ \hline 2 & 260,000.00 & 175,000.00 & 85,000.00 \\ \hline 3 & 260,000.00 & 175,000.00 & 85,000.00 \\ \hline 4 & 260,000.00 & 175,000.00 & 85,000.00 \\ \hline 5 & 260,000.00 & 175,000.00 & 85,000.00 \\ \hline 6 & 260,000.00 & 175,000.00 & 85,000.00 \\ \hline 7 & 260,000.00 & 175,000.00 & 85,000.00 \\ \hline 8 & 6,260,000.00 & 175,000.00 & 6,085,000.00 \\ \hline & 6,260,000.00 & NPV & (931,303.17) \\ \cline { 3 - 4 } & & IRR & 26% \\ \cline { 2 - 4 } & & & \end{tabular}Step by Step Solution
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