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I need to find out NPV, payback, discounted payback, IRR, and profitability index from the information below for 1,000 of car A and 1,000 of
I need to find out NPV, payback, discounted payback, IRR, and profitability index from the information below for 1,000 of car A and 1,000 of car B. The information below is pretaining to a purchase of one car of car A and car B. Thanks so much for your help!! Let know if you have any questions.
1) Calculation of Net Income 2) Operating Cash Flows Particulars Net Profit After Tax Add Depreciation Operating Cash Flows Particulars Annual Revenue Less: Expenses Fuel Cost(WN 1) Depreciation Net Profit Before Tax Less Tax @21% Net Profit After Tax Car A Car B Car A Car B 20,000.00 20,000.00 5,473.85 6,083.66 9,242.50 7,832.50 14,716.35 13,916.16 (3,828.57) (4,466.67) (9,242.50 (7,832.50) 6,928.93 (1,455.08) (1,617.18) 5,473.85 6,083 7,700.83 WN 1 Fuels cost Car A 28 miles 40000 miles 40000 miles 3) NPV Cash Flows Particulars Operating Cash FlowS(A) PVAF @ 8% for 4 years B Net Present value of Cash inflows(C- A B) 48,740.55 46,090.32 Car B 24 miles Car A Car B Mileage(X Total Usage(y) Fuel Cost(Z) Total Cost(Y"Z/x) 14,716.35 13,916.16 3.312 3.312 $2.68 3828.57 $2.68 4466.67 Less: Initial Cash outflow(D) NPV of Cash flow(C-D) CAR B must be bought 36,970.00 31,330.00 WN 2: It has assumed that depreciation is charged at straightline basis 11,770.55 14,760.32Step by Step Solution
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