.The monthly consumption of electrical energy in Isra University 50000JD. The University installed a solar PV system with a cost of 500000 JD. Calculate the payback
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1.The monthly consumption of electrical energy in Isra University 50000JD. The University installed a solar PV system with a cost of 500000 JD.
Calculate the payback period of capital for this investment.
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- Assume everything is given in n=0, CONSTANT dollars unless otherwise stated: MTA Textile INC. is considering to invest on a computer-controlled fabric cutting machine. The machine’s purchasing price is $150,000. The part of the initial cost of this investment will be paid using a $50,000 loan. The loan will be repaid in yearly installment for four years at 12%. This project requires a working capital investment of $15,000 at year 0. This investment on working capital will be fully recovered after the project is terminated. The salvage value of this investment at the end of fourth years is expected to be $40,000. This machine will generate annual revenues of $55,000, but have annual operating costs of $3,000. The equipment has a 45% declining balance rate for CCA calculations. The marginal income tax rate for the firm is given as 35%. A general inflation rate is expected to be 5%. However, the firm also expects 8% annual increase in revenue and working capital and a 4% annual increase…Assume everything is given in n=0, CONSTANT dollars unless otherwise stated: MTA Textile INC. is considering to invest on a computer-controlled fabric cutting machine. The machine’s purchasing price is $150,000. The part of the initial cost of this investment will be paid using a $50,000 loan. The loan will be repaid in yearly installment for four years at 12%. This project requires a working capital investment of $15,000 at year 0. This investment on working capital will be fully recovered after the project is terminated. The salvage value of this investment at the end of fourth years is expected to be $40,000. This machine will generate annual revenues of $55,000, but have annual operating costs of $3,000. The equipment has a 45% declining balance rate for CCA calculations. The marginal income tax rate for the firm is given as 35%. A general inflation rate is expected to be 5%. However, the firm also expects 8% annual increase in revenue and working capital and a 4% annual increase…Assume everything is given in n=0, CONSTANT dollars unless otherwise stated: MTA Textile INC. is considering to invest on a computer-controlled fabric cutting machine. The machine’s purchasing price is $150,000. The part of the initial cost of this investment will be paid using a $50,000 loan. The loan will be repaid in yearly installment for four years at 12%. This project requires a working capital investment of $15,000 at year 0. This investment on working capital will be fully recovered after the project is terminated. The salvage value of this investment at the end of fourth years is expected to be $40,000. This machine will generate annual revenues of $55,000, but have annual operating costs of $3,000. The equipment has a 45% declining balance rate for CCA calculations. The marginal income tax rate for the firm is given as 35%. A general inflation rate is expected to be 5%. However, the firm also expects 8% annual increase in revenue and working capital and a 4% annual increase…
- Assume everything is given in n=0, CONSTANT dollars unless otherwise stated: MTA Textile INC. is considering to invest on a computer-controlled fabric cutting machine. The machine's purchasing price is $150,000. The part of the initial cost of this investment will be paid using a $50,000 loan. The loan will be repaid in yearly installment for four years at 15% . This project requires a working capital investment of $10,000 at year 0. This investment on working capital will be fully recovered after the project is terminated. The salvage value of this investment at the end of fourth years is expected to be $50,000. This machine will generate annual revenues of $50,000, but have annual operating costs of $3,000. The equipment has a 40% declining balance rate for CCA calculations. The marginal income tax rate for the firm is given as 30%. A general inflation rate is expected to be 5%. However, the firm also expects 7% annual increase in revenue and working capital and a 6% annual increase…Assume everything is given in n=0, CONSTANT dollars unless otherwise stated: MTA Textile INC. is considering to invest on a computer-controlled fabric cutting machine. The machine's purchasing price is $150,000. The part of the initial cost of this investment will be paid using a $50,000 loan. The loan will be repaid in yearly installment for four years at 8%. This project requires a working capital investment of $10,000 at year 0. This investment on working capital will be fully recovered after the project is terminated. The salvage value of this investment at the end of fourth years is expected to be $70,000. This machine will generate annual revenues of $60,000, but have annual operating costs of $3,000. The equipment has a 30% declining balance rate for CCA calculations. The marginal income tax rate for the firm is given as 20%. A general inflation rate is expected to be 7%. However, the firm also expects 8% annual increase in revenue and working capital and a 6% annual increase in…Falkland, Inc., is considering the purchase of a patent that has a cost of $50,000 and an estimated revenue producing life of 4 years. Falkland has a cost of capital of 8%. The patent is expected to generate the following amounts of annual income and cash flows: A. What is the NPV of the investment? B. What happens if the required rate of return increases?
- You are assigned to calculate IRR for Sur Project with life of 8 years. You know that for the Sur project NPV @11% is OMR 25816 (positive) while NPV @ 12% is –OMR 5788(negative). The initial investment for this project is OMR 85000.The cost of capital for this project is 11%. What is the IRR (rounded to two decimal places) for the Sur Project? A. 11.82% B. 12.29% C. 12.82% D. 10.18%An entrepreneur wants to establish a facility by spending 250 USD in the first year, 300 USD in the second year, and 350 USD in the third year. Since the capital cost of this project is 32%, what is the investment amountBelow is information about a new textile factory investment project. Accordingly, the initial amount of the investment is 50,000,000 USD, the net cash flows it will provide each year is 15,000,000 USD, and the cost of capital (discount rate) is 15%. Is it possible to invest in this project? Make your investment decision using the net present value method. You can use annuity tables to discount cash flows or calculate them yourself. NOTE : Time period is 5 years please solve that in details
- K Innovation Company is thinking about marketing a new software product. Upfront costs to market and develop the product are $4.98 million. The product is expected to generate profits of $1.09 million per year for 10 years. The company will have to provide product support expected to cost $98,000 per year in perpetuity. Assume all profits and expenses occur at the end of the year. a. What is the NPV of this investment if the cost of capital is 5.6%? Should the firm undertake the project? Repeat the analysis for discount rates of 1.6% and 14.5%, respectively. b. What is the IRR of this investment opportunity? c. What does the IRR rule indicate about this investment? a. What is the NPV of this investment if the cost of capital is 5.6%? Should the firm undertake the project? Repeat the analysis for discount rates of 1.6% and 14.5%, respectively. If the cost of capital is 5.6%, the NPV will be $ (Round to the nearest dollar.) Should the firm undertake the project? (Select the best choice…An organisation is considering a capital investment in new equipment. The estimated cash flows are as follows: Years Cash Flow ($) 0 (240000) 1 80000 2 120000 3 74000 4 40000 5 20000 The capital’s cost of capital is 9%. Required: Calculate the NPV of the project to assess whether it should be undertaken. Also calculate the pay back period for this project .Innovation Company is thinking about marketing a new software product. Upfront costs to market and develop the product are $4.97 million. The product is expected to generate profits of $1.08 million per year for ten years. The company will have to provide product support expected to cost $99,000 per year in perpetuity. Assume all profits and expenses occur at the end of the year. a. What is the NPV of this investment if the cost of capital is 6.2%? Should the firm undertake the project? Repeat the analysis for discount rates of 1.6% and 14.2%, respectively. b. What is the IRR of this investment opportunity? c. What does the IRR rule indicate about this investment?