Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The investment cost of the project to launch a new production line is 200 million rubles; the revenue from the sale of new products manufactured

The investment cost of the project to launch a new production line is 200 million rubles; the revenue from the sale of new products manufactured using this line is 80 million rubles a year (before taxes and without depreciation of the equipment). The equipment is fully amortized over five years, after which the project is closed. The income tax rate is 30%. Calculate the NPV and payback period of the project (simple and discounted) if the discount rate is 12%.

Step by Step Solution

3.49 Rating (156 Votes )

There are 3 Steps involved in it

Step: 1

calculate the Net Present Value NPV and payback period of the project we need to consider the cash f... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting An Integrative Approach

Authors: C J Mcnair Connoly, Kenneth Merchant

2nd Edition

099950049X, 978-0999500491

More Books

Students also viewed these Finance questions