5- BROWN Co. is determining whether they should purchase a new machine. The machine cost is $380,000, installation costs are $20,000. MACRS 3 years. Tax rate 30% WACC 12%. The expected EBITDA for this 3 year project is $160,000, $230,000, $100,000 respectively. The machine could be sold at the end of the 3 years for $60,000. What is the terminal cash flow for this project? What means that the NPV for the BROWN Co. project is? a) 40,097 b) -24,615 c) 5,280 d) 12,286 And the The IRR for the BROWN Co. project is? a) 17.71% b) 11.6% c) 8.18% d) 12.77%

3. A company is planning to purchase a new machine to expand its production and to start anew project. There are two brand available A and B in the market. Both the machines are costing RO 70,000. The following cash inflows are expected to come for both the machines. Advise which machines will be better if the discounting rate is 10% for expansion of this project. Years Machine A Machine B A B 15,000 17,600 20,200 22,000 18,500 20,000 21,500 23,000 14,800 10,600 11,700 11,000 6.

You have a opportunity to make a investment that has $10.000,000 landing, 1.500.000 machine, outsourcing 500.000 and finance cost 1.000.000. Machines have 1.000.000 scrap value at end of 4th year. You will pay interest payment at the end of project, that is $400.000. If you make this investment now, you will receive $4.500,000 one year from today, $3.000,000, $5.000,000 and $ 4.000,000 respectively. The appropriate discount rate for this investment is 14 percent. Tax rate is % 30. Should you make the investment?

Company Xyz will buy a turning machine. The cost of the lathe machine is 25 000 TL and the scrap value is 5 000 TL. Below are the annual cash inflows for two different turning machines. Which turning machine would you recommend to the company? Years Machine K  Machine L  1 9000 13500 2 14000 12000 3 11000 11000 4 7750 8600 5 9500 15000 If the cost of capital is 25%, which alternative would you choose? Give the answer using the annual equivalent net product (YENH) method?

2.-DO IT IN EXCEL, AND SHOW THE FORMULASIf the company purchases the machine, its cost of $276,000 will be financed with a loan at 14.8% interest for three years requiring equal annual payments including principal and interest. The machine will be depreciated at 20% per year. The company will pay $8,000 per year for maintenance services. The company plans to keep the machine even after its payback period.What is the amount of the annual payment?  A) $120,480.90 B) $85,442.71 C) $276,000.00 D) $361,442.71   (Choose one option)

2.-DO IT IN EXCEL, AND SHOW THE FORMULASIf the company purchases the machine, its cost of $276,000 will be financed with a loan at 14.8% interest for three years requiring equal annual payments including principal and interest. The machine will be depreciated at 20% per year. The company will pay $8,000 per year for maintenance services. The company plans to keep the machine even after its payback period.What is the amount of the annual payment?  A) $120,480.90 B) $85,442.71 C) $276,000.00 D) $361,442.71

Axel Industries is considering investing in a new machine. It will generate revenues of $100,000 each year and the cost of goods sold will be 60% of sales. The net working capital requirements of the project is 72 days of the sale revenue from year 1 to year 3. What are the NWC needs in Year 0? Select one: a. $0 b. $20 000 c. $400 000 d. $40 000

A business is considering purchasing a piece of new equipment for $200,000. The equipment will generate the following revenues: Year 1: $50,000Year 2: $50,000Year 3: $50,000Year 4: $60,000The machine can be sold at the end of the year four for $25,000. Assume a discount of 8%. 2. What is the compounded return(IRR) for this project?

Suppose you are considering an investment project that requires $800.000, has a six-year life, and has a salvage value of $100,000. Sales volume is projected 10 be 65,000 units per year. Price per un it is $63, variable cos! per unit is $42, and fixed costs are $532,000 per year. The depreciation method is a five-year MACRS. 1l1e tax rate is 35% and you ex pect a 20% relurn on this investment. a-Determine the break-even sales volume. b-Calculate the cash flows of the base case over six years and its NPW. c-lf the sales price per unit increases to $400, what is the required break-even volume? d-Suppose the projections  given for price, sales volume, variable costs, and fixed costs are all accurate to within ± 15%. What would be the NPW figures of the best-case and worst-case scenarios?

Management of Wildhorse, Inc., is considering switching to a new production technology. The cost of the required equipment will be $4,000,000. The discount rate is 11 percent. The cash flows that management expects the new technology to generate are as follows. Years 1-2 3-5 6-9 CF 0 $750,000 $1,450,000 a. Compute the payback and discounted payback periods for the project. (Round answers to 2 decimal places, e.g. 15.25.) The payback for the project is The NPV of the project is $ years, and the discounted payback period is b. What is the NPV for the project? Should the firm go ahead with the project? (Enter negative amounts using negative sign e.g. -45.25. Do not round discount factors. Round intermediate calculations to O decimal places, e.g. 1,525 and final answer to O decimal places, e.g. 5,125.) The IRR of the project is , and using the NPV rule the project should be c. What is the IRR, and what would be the decision based on the IRR? (Round answer to 3 decimal places, e.g.…