Net Present Value, Mathematics

Assignment Help:
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?

Related Discussions:- Net Present Value

What is the net area to be painted, An elevated cylindrical shaped water to...

An elevated cylindrical shaped water tower is in require of paint. If the radius of the tower is 10 ft and the tower is 40 ft tall, what is the net area to be painted? (π = 3.14)

Measurement story problem, Seth has a pet goldfish. When he got his goldfis...

Seth has a pet goldfish. When he got his goldfish , it was only 5 centimeters long . Now it has grown to be 92 millimeters long. How many millimeters has the goldfish grown since

., round 64 to the nearest 10

round 64 to the nearest 10

Introduction to mathematics, We know that one has to deal with ...

We know that one has to deal with numbers in day-to-day life irrespective of his inclination and field of work. Also one cannot refute the fact

Linear programming , Use the simplex method to solve the following LP Probl...

Use the simplex method to solve the following LP Problem. Max Z = 107x1+x2+2x3 Subject to 14x1+x2-6x3+3x4=7 16x1+x2-6x3 3x1-x2-x3 x1,x2,x3,x4 >=0

Simplification, if a+1/b=b+1/c=c+1/a then the value of abc is

if a+1/b=b+1/c=c+1/a then the value of abc is

Show that af+bd+ce=ae+bf+cd= 1/2 , In figure, the incircle of triangle ABC...

In figure, the incircle of triangle ABC touches the sides BC, CA, and AB at D, E, and F respectively. Show that AF+BD+CE=AE+BF+CD= 1/2   (perimeter of triangle ABC), Ans:

Percent problems.., I have a graph, i need to determine the many hours per ...

I have a graph, i need to determine the many hours per day becky spends on math activity if she does it 25% of her day.

Limit comparison test - sequences and series, Limit Comparison Test Ass...

Limit Comparison Test Assume that we have two series ∑a n and ∑b n with a n , b n   ≥ 0 for all n. Determine, If c is positive (i.e. c > 0 ) and is finite (i.e. c

Solve simultaneous equations by graphical method, Solve the following pairs...

Solve the following pairs of simultaneous equations by elimination method i.2x+y=10 ii. 3x+y=6 3x-2y=1 5x+y=8 solve the following simult

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd