Answered step by step
Verified Expert Solution
Question
1 Approved Answer
If you have the following information about ice-cream manufacturing unit: Year Net Returns Discount rate 10% 0 -1700 1 1,700- 1 1000 0.909 909 2
- If you have the following information about ice-cream manufacturing unit:
Year | Net Returns | Discount rate 10% |
|
0 | -1700 | 1 | 1,700- |
1 | 1000 | 0.909 | 909 |
2 | 1000 | 0.826 | 826 |
3 | -800 | 0.751 | 601- |
4 | 1200 | 0.683 | 820 |
5 | -300 | 0.621 | 186- |
6 | 1350 | 0.564 | 761 |
7 | -750 | 0.513 | 385- |
8 | -450 | 0.467 | 210- |
9 | -200 | 0.424 | 85- |
10 | 900 | 0.386 | 347 |
Calculate
- Discounted Payback period
- IRR and if the hurdle rate = 25%, shall we accept the project or not ? Why ?
- NPV
- Discounted Average rate of returns
e) Net Average Rate of Return
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started