7. A company that makes clutch disks had the cash flows shown below for one department with a MARR of 25%. Calculate the rate of return by using return on invested capital approach with a reinvestment rate of 15% per year. Should the company continue to make clutch disks? Year Cash Flow, $ Ft 3000 1 -3600 2 1200 3 -1140
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- Assume that an investment of 100,000 produces a net cash flow of 60,000 per year for two years. The discount factor for year 1 is 0.89 and for year 2 is 0.80. The NPV is a. 0 b. 6,800 c. 1,400 d. (4,000)Garnette Corp is considering the purchase of a new machine that will cost $342,000 and provide the following cash flows over the next five years: $99,000, $88,000, $92,000. $87,000, and $72,000. Calculate the IRR for this piece of equipment. For further instructions on internal rate of return in Excel. see Appendix C.Assume a company is going to make an investment of $450,000 in a machine and the following are the cash flows that two different products would bring in years one through four. Which of the two options would you choose based on the payback method?
- 7. A company that makes clutch disks had the cash flows shown below for one department with a MARR of 25%. Calculate the rate of return by using return on invested capital approach with a reinvestment rate of 15% per year. Should the company continue to make clutch disks? Year Cash Flow, $ F: 2000 1 -2400 800 -760 2. 3.Imagineering, Inc., is considering an investment in CAD-CAM compatible design software with the cash flow profile shown in the table below. Imagineering’s MARR is 17 %/year. End of Year Cash Flow (M$) 0 -$12 1 -$1 2 $5 3 $2 4 $5 5 $5 6 $2 7 $5 What is the future worth of this investment?A company is planning to expand its business is costing OMR 19252. The following cash inflows are expected. Calculate Profitability index given the rate of discounting to be 3.008% Years Machine A 12396 13300 12500 4 14500 2. 3.
- please show your work, do not use excle 7. A company that makes clutch disks had the cash flows shown below for one department with a MARR of 13% per year. Calculate the rate of return by using return on invested capital approach with a reinvestment rate of 15% per year. Should the company continue to make clutch disks? Year Cash Flow, S F. 2500 -3000 1000 3 -950 2.6. A report from the marketing department indicates that a new product will generate the following revenue stream: P62,500 in the first year, P89,400 in year two, P136,200 in year three, P128,300 in year four, and P112,000 in year five. If your firm's discount rate is 11% and the cash flows are received at the end of each year, what is the present value of this cash flow stream? a.P379,435.35b.P421,173.24c.P476,036.04d.P528,400.00A company that makes clutch disks for race cars had the cash flows shown for one department. a. Calculate the internal rate of return.b. Calculate the external rate of return using the ROIC method with a reinvestment rate of 15% per year. c. Calculate the external rate of return using the MIRR method with a reinvestment rate of 15% per year and a borrowing rate of 8% per year.d. Rework parts (b) and (c) using a spreadsheet.
- Kabab Co. is considering a $240,000 investment, which will provide net returns of $110,000, $160,000, and $220,000 in the second, third, and fourth years, respectively. What is the payback period? Round up to the next month Use the following table: Cumulative Cash Cash Outflow Çash Inflow Net Cash Year Flow Flow 2 years and 10 months Ob. 2 years and 9 months 2 years and 11 months Od. 2 years and 8 monthsKabab Co. is considering a $240,000 investment, which will provide net returns of $110,000, $160,000, and $220,000 in the second, third, and fourth years, respectively. What is the payback period? Round up to the next month Use the following table: Year Cash Outflow Cash Inflow Net Cash Flow Cumulative Cash FlowSalsa Company is considering an investment in technology to improve its operations. The investment costs $241,000 and will yield the following net cash flows. Management requires a 10% return on investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) Note: Use appropriate factor(s) from the tables provided. Year Net cash Flow 1 $ 48, 200 2 53,900 3 76, 400 4 95,500 5 126,500 Required: Determine the payback period for this investment. Determine the break - even time for this investment. Determine the net present value for this investment. Should management invest in this project based on net present value?