Net Present Value, Mathematics

A business has the opportunity to expand by purchasing a machine at a cost of £80,000.
The machine has an estimated life of 5 years and is projected to generate a cashflow of £20,000 each year end, with no scrap value.
Given the current level of interest rates an appropriate discount rate is regarded to be 7%.
(a) Calculate the NPV of this project.
(b) Calculate an approximate Internal Rate of Return for this investment (to the nearest 1%).
(c) Given a discount rate of 7% at what level of annual cashflow would this project become unviable?
Posted Date: 7/19/2012 12:47:59 PM | Location : United States







Related Discussions:- Net Present Value, Assignment Help, Ask Question on Net Present Value, Get Answer, Expert's Help, Net Present Value Discussions

Write discussion on Net Present Value
Your posts are moderated
Related Questions
What is 2 5 ? 2 5 = 2 ×2 ×2 ×2 ×2 = 32

Which of the partially ordered sets in figures (i), (ii) and (iii) are lattices? Justify your answer.   Ans: suppose (L, ≤) be a poset. If each subset {x, y} consisting

Ask question #Minimum 100 words accepted what is a ratio

a pair of straight lines are drawn through the origin forms with the line 2x+3y=6 an isoceles triangle right angled at origin find the equation of pair of straight line?

Area with Polar Coordinates In this part we are going to look at areas enclosed via polar curves.  Note also that we said "enclosed by" in place of "under" as we usually have

How much greater is 0.0543 than 0.002? To ?nd out how much greater a number is, you required to subtract; 0.0543 - 0.002 = 0.0523. For subtract decimals and line the numbers up

Formulas Now there are a couple of nice formulas which we will get useful in a couple of sections. Consider that these formulas are only true if starting at i = 1. You can, obv

Solving for X in isosceles triangles