Reference no: EM13826141

Problem:

The after tax cash flow of B&F Chemical Corp. - a plant producing fertilizers - is as follows:

End of year	0	1	2	3	4	5
Cashflow, $106	-23	X	X	X	Y	X

The minimum attractive rate of return (MARR) for the company is z.

Determine:                 

• the future value of the cash flow at the end of year 5, if X = 12, Y= 8 and z = 8% quarterly compounding
• the value of X if the equivalent uniform annual value of the cash flow is $2,000,000, Y = 3 and z = 10% yearly compounding
• the payback period if X = 7 and Y=3
• the internal rate of return if X = Y = 5
• the external rate of return if X = Y = 4 and z = 12% yearly compounding

Additional Information:

The question belongs to Finance and it discusses about calculation of future value, annual value and payback period for a project.