Question
The company F4 sh.p.k. is analyzing the investment in one of the two projects in order to expand the production capacity by ensure in the
The company F4 sh.p.k. is analyzing the investment in one of the two projects in order to expand the production capacity by ensure in the future net returns (financial flows) by years: Year Project A Project B 0-1,500,0005 -1,000,0005 100.0005 200.0005 300,000S 500.0005 700,000S 900,0005 4 5 900.0005 300.0005 800.0005 200.0005 The company's cost of capital was j, = 12%. currently the company has a bank account of S800,000 and the share the rest of the money for investment in the project will be loaned with the conditions: rate j2 = 11%, repayment in equal monthly installments and repayment period of 10 years. (a) Find the NPV of each project and indicate which project is due to be implemented by the company according to ANPV? (b) Find the IRR of each project. (e) Based on the analysis of the decision in point (a), build the loan repayment plan for the installments of the second year. (d) If the state of the bank account today will be removed with values monthly of 25,000S, with a rate of j,2 = 7% after some time viera e Is there $150,000 left?
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