Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Upload an Excel spreadsheet showing the cash flows of the investment for the 400.000 investment. Discuss your findings in words.( Make assumptions and/or research for

  1. Upload an Excel spreadsheet showing the cash flows of the investment for the 400.000 investment. Discuss your findings in words.( Make assumptions and/or research for the main elements you want to include in your calculations e.g. your own expected return on equity, rent prices, monthly costs, risk factors, growth rates etc.)
    Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
    Inflows $ - $ - $ - $ - $ - $ -
    - - - - - -
    Total Inflows - 0 0 0 0 0
    Outflows
    0 - - - - -
    - 0 0 0 0 0
    - - - - - -
    Total Outflows 0 0 0 0 0 0
    Overall Cashflow $ - $ - $ - $ - $ - $ -
    Discount factor - - - - - -
    present value - - - - - -
    Net Present Value: $ -
    Payback Period - years
    Discount Rate 6%
  2. Estimate/calculate the overall rate of return (WACC) for the 400.000 investment based on your personal assumptions. How are you going to finance this investment? Discuss about the capital structure mix you have chosen and how this mix affects the WACC. Write about this in words. (
    INTEREST RATE 10%
    R 15%
    TAX RATE 30%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

Mastering The Five Tiers Of Audit Competency Internal Audit And IT Audit

Authors: Ann Butera

1st Edition

1498738494, 978-1498738491

More Books

Students also viewed these Accounting questions

Question

600 lb 20 0.5 ft 30 30 5 ft

Answered: 1 week ago