Investor is evaluating project assuming yield

Assignment Help Financial Management

Reference no: EM131912429

1) A new project has an investment of one million and it will generate a cash flow at the end of the first year of $632,000 and at the end of the second year $725,000. Calculate the IRR for this project.

2) The revenues for a project are 1.2 millions at the end of the first year and 2.6 millions at the end of the second year. If the investor is evaluating this project assuming a yield of 10% per year. How much is the present value (investment) of this project.

3) A 5 years’ project is defined as it follows: Revenues are $645,000 the first year and will increase 3% per year for the next 4 years. Fixed cost are $52,000 and they will increase 5% the first 2 years and will remain constant for the following years. Variable cost is assumed to be 8% of the Revenues. The initial investment is $800,000 Fixed assets are priced at $250,000 and they are depreciated linearly for 5 years with a residual value of zero. Taxes are 35%

Calculate: Revenues per year

Variable Cost per year

Fixed Cost per year

EBIT per year.

Reference no: EM131912429

Questions Cloud

Explain the purpose or characteristic of the item : Explain the purpose or characteristic of the item/area/procedure as it relates to the department and why it is important to control.

What amount should delaware record as the deferred tax : Assuming that the enacted tax rates in effect are 30% in 2014 and 25% in 2015, what amount should Delaware record as the deferred tax asset

Challenges for cause and preemptory challenges : You will also discuss jurors' qualifications as well as challenges for cause and preemptory challenges.

Prepare pryce company journal entries to record the sale : Prepare Pryce Company's journal entries to record the sale of the equipment in these four independent situations

Investor is evaluating project assuming yield : If the investor is evaluating this project assuming a yield of 10% per year. How much is the present value (investment) of this project.

What award did ford give penske as a result : What was Penske's simple goal for Ford for carrier and premium freight management? What award did Ford give Penske as a result of their work together?

What are the sources of emotions and moods : How are emotions different from moods? What are the sources of emotions and moods? What is emotional intelligence?

What is value of the investment in burke on gilman company : Market price per share: $42. What is the value of the investment in Burke on Gilman Company's December 31, 2017 balance sheet

Identify a time in your personal or professional life : Create your own explanation of the importance of engaging stakeholders in an emergency planning process.

User Account

All Pages