Answered step by step
Verified Expert Solution
Question
1 Approved Answer
u havr to solve the last one A company is considering the purchase of new machine. Two alternative models are available. Each year cash flow
u havr to solve the last one
A company is considering the purchase of new machine. Two alternative models are available. Each year cash flow is given. If the total investment of Model A is Rs. 70,000 and Model B Rs: 60,000, Which alternative company will select on the basis of NPV of twe models? Year Model A Model B 1 8000 24000 2 24000 32000 3 32000 40000 4 48000 24000 5 32000 16000 6. Problem - 2 Initial outlay for each of the following projects is R$ 15,000 & standard payback is 3 years. Evaluate the projects and rank them based on payback period Year 1 2 Project A Project B Project C Project D 5,000 3,500 2,500 8,000 5,000 4,000 2,500 6,000 5,000 4,500 2,500 6,000 5,000 6,000 2,500 5,000 5,000 6,000 2,500 5,000 3 4 5 4. Calculate ARR Investment Project A 50,000 5 Years Project B 50,000 5 Years Expected Life Scrap Value 7000 3000 Year 1 2 3 4 5 Project A 6,000 9,000 10,000 12,000 14,000 Proiect B 7,000 8,000 10,000 12,000 16,000 Total Income 51,000 53,000 5. A company is considering the purchase of new machine. Two alternative models are available. Each year cash flow is given. If the total investment of Model A is Rs. 70,000 and Model B Rs: 60,000, Which alternative company will select on the basis of NPV of two models? Year Model A Model B 1 8000 2400 2 24000 32000 3 32000 40000 4 48000 24000 5 32000 16000 A company is considering the purchase of new machine. Two alternative models are available. Each year cash flow is given. If the total investment of Model A is Rs. 70,000 and Model B Rs: 60,000, Which alternative company will select on the basis of NPV of twe models? Year Model A Model B 1 8000 24000 2 24000 32000 3 32000 40000 4 48000 24000 5 32000 16000 6. Problem - 2 Initial outlay for each of the following projects is R$ 15,000 & standard payback is 3 years. Evaluate the projects and rank them based on payback period Year 1 2 Project A Project B Project C Project D 5,000 3,500 2,500 8,000 5,000 4,000 2,500 6,000 5,000 4,500 2,500 6,000 5,000 6,000 2,500 5,000 5,000 6,000 2,500 5,000 3 4 5 4. Calculate ARR Investment Project A 50,000 5 Years Project B 50,000 5 Years Expected Life Scrap Value 7000 3000 Year 1 2 3 4 5 Project A 6,000 9,000 10,000 12,000 14,000 Proiect B 7,000 8,000 10,000 12,000 16,000 Total Income 51,000 53,000 5. A company is considering the purchase of new machine. Two alternative models are available. Each year cash flow is given. If the total investment of Model A is Rs. 70,000 and Model B Rs: 60,000, Which alternative company will select on the basis of NPV of two models? Year Model A Model B 1 8000 2400 2 24000 32000 3 32000 40000 4 48000 24000 5 32000 16000Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started