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

Find the return period in years of the critical event, 1. A drainage system...

1. A drainage system overflows into a river causing pollution when the rainfall falling in an hour exceeds 50 mm. During any given year, the maximum hourly rainfall follows an expo

Inverse functions, We have seen that if y is a function of x, then fo...

We have seen that if y is a function of x, then for each given value of x, we can determine uniquely the value of y as per the functional relationship. For some f

Percentage, how do you you find 40% if you 35 out of 40

how do you you find 40% if you 35 out of 40

Minimum value of the function, How the property AM>or = GM used to get min...

How the property AM>or = GM used to get minimum value of the function......e,g for what condition of a and b does minimum value of a tan^2 x + b cot^2 x equals maximum value of a

Angles, in the quadrilateral abcd,ab is 4.3,bd is 5.1,ad is 4.8.angle bdc i...

in the quadrilateral abcd,ab is 4.3,bd is 5.1,ad is 4.8.angle bdc is 20 degrees and angle c is 80 degrees.all dimentions in metres.calculate the unknown sides and angles of the plo

Mathematical formulae, Mathematical Formulae (a ...

Mathematical Formulae (a + b) 2 = a 2 + b 2 + 2ab (a - b) 2 = a 2 + b 2 - 2ab (a + b) 2 +

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