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Plz answer in full steps and dont use excel answer. Plz answer all questions i dont have more uploads plZzzz. 3. A firm with a
Plz answer in full steps and dont use excel answer. Plz answer all questions i dont have more uploads plZzzz.
3. A firm with a market value of $1,000,000 is considering a project with the following cash flows. Find the payback by using a discount rate of 8%, and 16%. (5 marks) 4. Your firm has the opportunity to expand into one of two new markets, and you have been asked to conduct the financial analysis. The firm can enter only one of these markets now, so the projects are mutually exclusive. The initial outlays are $240,000 for Project A and $225,000 for Project B. The forecast cash flows are shown below. a. What is the NPV of each project at discount rates of 6%,12% and 18%. (5 marks) b. Work independently and Clearly explain the conclusions to be drawn from the NPV profile. (5 marks) PART II.CRITICAL THINKING SKILLS (10 marks) 5. a. Evaluate the capital budgeting method for analysis with suitable examples.(5 MARKS) b.The cost of a plant is Rs. 5,00,000. It has an estimated life of 5 years after which it would be disposed off (scrap value nil). Profit before depreciation, interest and taxes (PBIT) is estimated to be Rs. 1,75,000 p.a. Evaluate the yearly cash flow from the plant. Tax rate 30%Step by Step Solution
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