no excel full question answer please
Safari %41 15:22 Uzmanlarla Soru-Cevap Bitti NO EXCELL A fost o 53000000200 The powstom terres 5500000 204 $700.000 2006 1000000 2004 51 000 000 2007 5300000 20080000 The fim desired wrot poisy which are more than wa Find the contre le per Bu hemise Nowoce where you fem understand how the pione Lacoste www Afmers buy a new machine expected time. The teachine 3 000 000 2003 700 000 200400000 2005. 100 000 2 51300000 2000000 2000 300000 where we go i should them the near futes your Where there are a Federne ang toto model for our mention the wat Afmcorders are 30 pouco 100. There will be erected comme 0813200 204 51200 20051200 2012 313200 2007 515200 Ford te were the project Gent the current Now your head which you need to provider wie Nevrofyour mais concours de which were to be one of what and what out toode you will 1) A firm considers an investment whose cost is $ 3 000 000 which is paid in 2022. The expected cash flows from this investment are as follows: 2023 $ 500 000 2024 $ 700 000 2025 $ 1 000 000 2026 $ 1 000 000 2027 $ 800 000 2028 $ 600 000 The firm's desired target payback period is 3 years which means that firm accepts all projects with a payback period less than 3 years. a) Find the exact payback period of this investment on the basis of simple payback period. b) Should the firm accept or reject this investment (give your answer simply as accept or reject) Note: Notice that I want to see the exact payback period which means you need to use interpolation. See my written notes to understand how the interpolation is done. 2) Let us consider the same investment whose cost and expected cash flows are given in Question 1 using discounted payback period. a) What is the exact payback period of that investment according to the discounted payback method if the relevant discount rate for that investment is 14% b) Should the firm accept or reject this investment if the desired payback period of the investment is 3 years. 3) A firm considers to buy a new machine whose expected lifetime is 6 years. The cost of the machine is $ 3 000 000 which is paid in 2022. The expected cash flows of this investment are as follows: 2023: $ 700 000 2024: $ 800 000 2025: $ 1 200 000 2026: $ 1 300 000 2027: $ 900 000 2028: $ 600 000 a) Find the net present value of this investment using a discount rate of 18% b) Should the firm accept or reject this investment (write accept or reject as your answer) ? c) What is the expected contribution of that investment to the value of the firm (give a numerical answer) ? d) Find the pl value (profitability index) using the cost of investment and the expected cashflows of this problem and mention if the investment is accepted or rejected. 4) A firm considers to buy a new 3D printer whose cost is $ 46 100. The cost of 3D printer will be paid in 2022. The expected cash flows of this investment are as follows: 2023: $ 13200 2024: $ 13200 2025: S13200 2026: S 13 200 2027: S13 200 a) Find the Internal Rate of Return (IRR) of this project b) Given that the current annual interest rate is 15% and the risk premium appropriate for this imestment is 5%: should the firm accept or reject this investment. Note: If you do not have access to a sophisticated calculator or Excel which you need to provide a numerical answer: write the relevant formula for IRR. If your formula is correct, you receive full grade for question da. Write the decision criteria according to which we accept or reject an investment on basis of IRR (eg write something like asb specifying what a is and what b is) to get full credit for 4 in case you are unable to calculate the IRR. Safari %41 15:22 Uzmanlarla Soru-Cevap Bitti NO EXCELL A fost o 53000000200 The powstom terres 5500000 204 $700.000 2006 1000000 2004 51 000 000 2007 5300000 20080000 The fim desired wrot poisy which are more than wa Find the contre le per Bu hemise Nowoce where you fem understand how the pione Lacoste www Afmers buy a new machine expected time. The teachine 3 000 000 2003 700 000 200400000 2005. 100 000 2 51300000 2000000 2000 300000 where we go i should them the near futes your Where there are a Federne ang toto model for our mention the wat Afmcorders are 30 pouco 100. There will be erected comme 0813200 204 51200 20051200 2012 313200 2007 515200 Ford te were the project Gent the current Now your head which you need to provider wie Nevrofyour mais concours de which were to be one of what and what out toode you will 1) A firm considers an investment whose cost is $ 3 000 000 which is paid in 2022. The expected cash flows from this investment are as follows: 2023 $ 500 000 2024 $ 700 000 2025 $ 1 000 000 2026 $ 1 000 000 2027 $ 800 000 2028 $ 600 000 The firm's desired target payback period is 3 years which means that firm accepts all projects with a payback period less than 3 years. a) Find the exact payback period of this investment on the basis of simple payback period. b) Should the firm accept or reject this investment (give your answer simply as accept or reject) Note: Notice that I want to see the exact payback period which means you need to use interpolation. See my written notes to understand how the interpolation is done. 2) Let us consider the same investment whose cost and expected cash flows are given in Question 1 using discounted payback period. a) What is the exact payback period of that investment according to the discounted payback method if the relevant discount rate for that investment is 14% b) Should the firm accept or reject this investment if the desired payback period of the investment is 3 years. 3) A firm considers to buy a new machine whose expected lifetime is 6 years. The cost of the machine is $ 3 000 000 which is paid in 2022. The expected cash flows of this investment are as follows: 2023: $ 700 000 2024: $ 800 000 2025: $ 1 200 000 2026: $ 1 300 000 2027: $ 900 000 2028: $ 600 000 a) Find the net present value of this investment using a discount rate of 18% b) Should the firm accept or reject this investment (write accept or reject as your answer) ? c) What is the expected contribution of that investment to the value of the firm (give a numerical answer) ? d) Find the pl value (profitability index) using the cost of investment and the expected cashflows of this problem and mention if the investment is accepted or rejected. 4) A firm considers to buy a new 3D printer whose cost is $ 46 100. The cost of 3D printer will be paid in 2022. The expected cash flows of this investment are as follows: 2023: $ 13200 2024: $ 13200 2025: S13200 2026: S 13 200 2027: S13 200 a) Find the Internal Rate of Return (IRR) of this project b) Given that the current annual interest rate is 15% and the risk premium appropriate for this imestment is 5%: should the firm accept or reject this investment. Note: If you do not have access to a sophisticated calculator or Excel which you need to provide a numerical answer: write the relevant formula for IRR. If your formula is correct, you receive full grade for question da. Write the decision criteria according to which we accept or reject an investment on basis of IRR (eg write something like asb specifying what a is and what b is) to get full credit for 4 in case you are unable to calculate the IRR
