Exide batteries Inc is planning to expand its current production facility and is reviewing following project. YearCash-flow0-500,0001200,000250,000335,0004280,000 WACC for the Project is 8%. You as financial Analyst required to prepare a report on project Feasibility. RequirementsCalculate payback of the project also state advantages and disadvantages of this method.Calculate discounted payback of the project also state advantages and disadvantages of this method.Calculate NPV of the project. Should we take this project or not? Also state advantages and disadvantages of this method.Calculate IRR of the project also state advantages and disadvantages of this method.

Information Provided: WACC = 8% Cash outflow = -500,000 Cash Inflow (Year 1) = 200,000 Cash Inflow…

Answered: Calculate payback of the project also…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter12: Capital Investment Analysis

Section: Chapter Questions

Problem 4PA: Net present value method, internal rate of return method, and analysis for a service company The...

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Exide batteries Inc is planning to expand its current production facility and is reviewing following project.

Year	Cash-flow
0	-500,000
1	200,000
2	50,000
3	35,000
4	280,000

WACC for the Project is 8%.

You as financial Analyst required to prepare a report on project Feasibility.

Requirements

Calculate payback of the project also state advantages and disadvantages of this method.
Calculate discounted payback of the project also state advantages and disadvantages of this method.
Calculate NPV of the project. Should we take this project or not? Also state advantages and disadvantages of this method.
Calculate IRR of the project also state advantages and disadvantages of this method.

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