Question
please solve part 1 and 2 Mert and his team are negotiating with RifleLock, which is a startup that produces smart locks. They're planning to
Mert and his team are negotiating with RifleLock, which is a startup that produces smart locks. They're planning to make an initial investment of 1700000 to purchase new equipment for smart lock production. They expect to generate yearly revenue of 195,000 while incurring annual costs of 135,000 Their plan is to sell the company for 6,500,000 tl in the sixth year. Please refer to tables A1, B1 and B2 as necessary. Keep in mind that the expected rate of return is 25%.
a) What is the cashflow in ear 6?
b) Report the amount of money that exceeded Granny's Home Appliances' expectations in terms of today
c) What is the internal rate of return of this business?
d) What would be the IRR if the annual revenue were increased by 36%? (Do not forget to change the annual revenue back to its original value.)
part2:
a) Granny's Home Appliances intends to make an investment in BerBank with the goal of being able to withdraw 10,567,321 after a period of 6 years. BerBank offers an annual interest rate of 17.06%. How much should Grannv's Home Appliances invest in order to achieve this financial goal?
b) Granny's Home Appliances has decided to invest in ABank, which offers a withdrawal of 8892000 ,after making monthly payments of 187,767 for 2 years. Report ABank's monthly interest rate
c) RifleLock has decided to introduce a new line of smart locks at the end of the 5th year. To fund this release, they require 800,000. In the 1st year, Mert deposits 400,000 in a bank with a 7.2% annual interest rate and continues to make early payments of 20,000. What is the additional amount that is needed on top of the total amount withdrawn at the end of the 5th year to reach the required 800,000 for the new line of smart locks?
Initial Investment= 1,700,000.00
Annual revenue= 195,000.00
Annual codts= 135,000.00
selling price = $6,500,000.00
expected rate of return = 25.00%
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