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
Hi, I don''t know how to solve 2(5x+3)

Method to solve Simultaneous Equations with two or more than two variables Method  Above we have seen equations wherein we are required to find the value of the

what is the factor of the trinomial 2x2-7x-4


Shirts numbered consecutively from 1 to 20 are worn by 20 members of a bowling league. While any three of these members are selected to be a team, the league aims to use the sum of

Dinesh bought an article for Rs. 374, which included a discount of 15% on the marked price and a sales tax of 10% on the reduced price. Find the marked price of the article.

solve for y given that 3sin^2 y+cos y-1=0 for 0y360

Probability of A is 85% Probability of B is 45% Probability A and B 56% What is the probability of not either A or B?

round to the nearest hundreths 1677.76

If α & ß are the zeroes of the polynomial 2x 2 - 4x + 5, then find the value of a.α 2 + ß 2   b. 1/ α + 1/ ß  c. (α - ß) 2 d. 1/α 2 + 1/ß 2    e.  α 3 + ß 3 (Ans:-1, 4/5 ,-6,