Find out the pay back period and discounted pay back period

Assignment Help Financial Accounting
Reference no: EM132609094

Question 1: Find out the Pay back period and Discounted Pay back Period Net Present Value of a project that needs an initial cash outlay of Rs.1,80,000 that can be borrowed @ 12% rate of interest. The project life is 5 Years and the scrap value of the project at the end of 5th year is Rs.20,000. The project has the following estimated cash inflows at the end of each year for five years.

Year                                    Cash Inflows

1                                         30000

2                                         50000

3                                        70000

4                                        80000

5                                        60000

Question 2: Find out the project to be selected through IRR out of the following three mutually exclusive projects that needs an initial cash outlay of Rs.2,000,000 and that can be borrowed @ 16% rate of interest. The project life is 5 Years. The project has the following estimated cash inflows at the end of each year for five years.

Year                 Cash Flows Project A                         Cash Flows Project B                     Cash Flows Project C

0                            -2000000                                       -2000000                                  -2000000

1                                400000                                             800000                                     600000

2                                 500000                                             700000                                      600000

3                                  600000                                            600000                                         600000

4                                     700000                                            500000                                    600000

5                                        800000                                            400000                                  600000

Reference no: EM132609094

Questions Cloud

How would you define ethics : How would you define ethics? What are three factors that might affect good ethical conduct?
Calculate consolidated net income controlling interest share : Calculate the Consolidated Net Income Controlling Interest Share and Noncontrolling Interest Share sections
Entering the organization security center : Countermeasures concentrate extensively on deterring unauthorized users entering the organization's security center.
What growth strategies might amazon pursue : What growth strategies might amazon pursue. Provide reference to your answer.
Find out the pay back period and discounted pay back period : Find out the Pay back period and Discounted Pay back Period Net Present Value of a project that needs an initial cash outlay of Rs.1,80,000
Determine the gain or loss on sale of the interest : On May 1, 2019 Pala sold a 20% interest in Saga (one-fourth of its holdings) for $260,000. Determine the gain or loss on sale of the 20% interest
Regarding critical issues related to the system : The interface should present information visually with icons or graphics and text regarding critical issues related to the system,
Describe three cloud-based solutions for individuals : Describe three cloud-based solutions for individuals and three cloud-based solutions for businesses.
Compute present value for bond that promises to pay interest : The discount rate is 11 per cent. What would be your choice? Will your answer change if Rs 2,310 is paid in the beginning of each year for 5 years?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Estimate variable and fixed cost elements of annual cost

Speedy Parcel Service operates a fleet of delivery trucks in a large metropolitan area. A careful study by the company’s cost analyst has determined that if a truck is driven 120,000 miles during a year, the average operating cost is 11.6 cents per m..

  Record the general journal entry to record the acquisition

A.) Record the general journal entry to record the acquisition of the equipment on June 1st.

  Determine what is the return on assets

Find What is the return on assets? Dixons Inc., has sales of $510,400, total equity of $250,000, a profit margin of 8 percent and a debt-equity ratio of .60.

  What is the market price per share

What is the market price per share? If interest rates in general should rise so that the required return becomes 12 percent, what will happen to the market

  What annual rate of return did aunt mary earn

Your Aunt Mary recently, She found out that the painting is now worth $50,000. What annual rate of return did Aunt Mary earn on this painting?

  Partners in a general partnership

A, B and C were partners in a general partnership. A contributed $20,000, B contributed $6,000 and C contributed $4,000. Last year, C made a loan to the partnership for $10,000, which was needed by the partnership to pay its creditors. On final settl..

  Liability limits-one event or two

Did the September 11 terrorist attacks on the World Trade Center constitute one loss or two? The resolution to this question is far from simple. Controversy surrounding this issue illustrates the ambiguities inherent in some business insurance con..

  Companys ending finished goods inventory balance

Rush Company budgeted that it would incur $180,000 of manufacturing overhead costs in the upcoming period. By the end of the period, Rush had actually incurred manufacturing overhead costs totaling $192,000. Determine how much manufacturing overhead ..

  Agreeing to accept the balance in four equal installments

On December 31, 2014, Oakbrook Inc. rendered services to Beghun Corporation at an agreed price of $104,855, accepting $41,100 down and agreeing to accept the balance in four equal installments of $20,550 receivable each December 31. An assumed intere..

  Calculating net cash flow from operating activities

Which one of the following below should be added to net income in calculating net cash flow from operating activities using the indirect method?

  Hydrangia corporations alternative minimum tax liability

Hydrangia Corporation reports the following results for the current year: Taxable income $300,000 Interest on private activity bonds 20,000 Life insurance proceeds 250,000 Dividends-received deduction 50,000 Depreciation claimed for: Taxable income p..

  Find which rate of return does investor expect to receive

Which rate of return does the investor expect to receive on this stock if the stock is purchased today? Round answer to two decimal places in percentage form.

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