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

Solve following 4e1+3 x - 9e5-2 x = 0 logarithms, Solve following 4e 1+3 x...

Solve following 4e 1+3 x - 9e 5-2 x  = 0 . Solution Here the first step is to get one exponential on every side & then we'll divide both sides by one of them (that doesn'

Yield volatility and graph, This question has two related parts, (a) and (b...

This question has two related parts, (a) and (b). (a) Use the daily yields in the table below to compute a daily standard deviation of yields. Next annualize the daily standard

Arithmetic sequence, find a30 given that the first few terms of an arithmet...

find a30 given that the first few terms of an arithmetic sequence are given by 6,12,18...

Example of multiplication of matrix, Given So calculate AB. Sol...

Given So calculate AB. Solution The new matrix will contain size 2 x 4. The entry in row 1 and column 1 of the new matrix will be determined by multiplying row 1 of

Trigonmetry, How do I find a bearring using trig?

How do I find a bearring using trig?

Evaluate the volume of one orange, An orange has a diameter of 3 inches. Ev...

An orange has a diameter of 3 inches. Evaluate the volume of one orange. (π = 3.14) a. 9.42 in 3 b. 113.04 in 3 c. 28.26 in 3 d. 14.13 in 3 d. To determine the

Twelve coworkers go out how many slices will each person get, Twelve cowork...

Twelve coworkers go out for lunch together and sequence three pizzas. Each pizza is cut within eight slices. If each person gets the similar number of slices, how many slices will

Show that the vector is in the perfect matching polytope, 1.  Let G = (V,E)...

1.  Let G = (V,E) be a graph for which all nodes have degree 5 and where G is 5-edge is connected. a) Show that the vector x which is indexed by the edges E and for which x e =

Sketch the graph of the derivative of this function f '( x), Below is the s...

Below is the sketch of a function f ( x ) . Sketch the graph of the derivative of this function f ′ ( x ) . Solution : At first glance it seems to an all however impossib

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