(A) The payback is 35‚000/5‚000= 7 years Computation of the NPV : 15 NPV= -35‚000 + Σ 5‚000 / ( 1 + 12%)^ 15 i=1 NPV = $- 947. 67 Computation of the IRR : 15 0= -35‚000 + Σ 5‚000 / ( 1 + IRR)^ 15 i=1 IRR= 11.49% The NPV of this project is negative and the IRR is lower then the Cost of Capital (12%) Rainbow products shouldn’t go for
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findings and interpretation of data‚ recommendation‚ conclusion and bibliography. Each of these chapters is explained in detail with the sub topics that discuss the essential procedures and steps in completing this study. On this chapter will discuss about the background of study‚ scope of study‚ problem statement‚ objectives and research question‚ hypothesis‚ limitation and significance involved and also discusses the definition of the main terms used in this research. 1.1 BACKGROUND OF THE STUDY
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INFLATION INFLUENCE ABOUT INVESTMENT DECISION Associate Professor PhD Dorel Berceanu‚ dorelberceanu@yahoo.com Associate Professor PhD Anca Băndoi‚ anca_bandoi@yahoo.com University of Craiova ABSTRACT: In this article‚ we are dealing with an issue very important as regards the investment decision‚ namely the influence that it has on inflation. Thus‚ in a brief introduction spotlighted how we have perceived inflation today‚ what it means and how it manifests itself. An ample space in the paper is
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Roe-Deer by Ted Hughes Analysis This poem is from the collection "Moortown Diary"‚ also in Hughes "New Selected Poems"‚ written 1973. The poem itself seems to present two different worlds to the reader - that of nature and of humans. It starts off with the description of the surroundings and the atmosphere. Ted Hughes begins the poem with an alliteration - dawn-dirty light‚ describing a winter morning in such a peculiar way. The reader get the image of early morning with some sort of a lack of
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INVESTMENT APPRAISAL Exercise1: Project K has a cost of $52‚125‚ its expected net cash inflows are $12‚000 per year for 8 years‚ and its cost of capital is 12%. a. What is the project’s PP (time thu hồi dc vốn)? b. What is the project’s DPP? c. What is the project’s NPV? d. What is the project’s IRR? a) PP = 52‚125/12‚000 = 4.34 b) 52‚125 – 12‚000/1.12 – 12‚000/1.12^2 – 12‚000/1.12^3 – 12‚000/1.12^4 – 12‚000/1.12^5 – 12‚000/1.12^6 = 2788 PV (7) = 12000/1.12^7 = 5428 DPP = 6 + 2788/5428
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Deer in the Works Deer in the Works is a Cold War era short story by Kurt Vonnegut. It first appeared in Esquire in April‚ 1955‚ and was anthologized in Welcome to the Monkey House. It revolves around David Potter‚ a paper owner who finds new work as a a publicity writer at the mammoth Ilium Works because of financial strain who consequently leaves upon viewing the dehumanisation and quantification of human life. Vonnegut’s experiences as a soldier and prisoner of war‚ coupled with his anti-authoritarian
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return (IRR) and the net present value (NPV) techniques are 2 investment decision tools that satisfy the 2 major criteria for the correct evaluation of capital projects. This criterion is that the techniques should incorporate the use of cash flows and the use of the time value of money. This makes them viable techniques for evaluating investment proposals. The Net Present Value is one of the techniques that are used by firms when evaluating which investment proposals to take on board and which ones
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depreciated. Kennedy can sell the used equipment today for $5 million‚ and its tax rate is 40 percent. What is the equipment’s after tax net salvage value. Book Value (BV) = (1 – 0.8) x $20 = $4 million Market Value (MV) = $5 million Additional Taxable Income = MV – BV = $1 million Additional Taxes = 0.4 x $1 = $0.4 million After tax salvage value = $4 - $0.4 = $3.6 million Or use the following formula: After-tax Salvage Value = MV – T x (MV – BV) 1 PROBLEM 6 (Chapter 12) You must evaluate
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enjoyed by many‚ and for many people‚ deer hunting creates this adrenaline rush. Whether it be the thrill of the kill or the high paced action that can often accompany deer hunting‚ deer hunting seems to feed many people’s adrenaline hunger. Although it is a fun sport‚ it can be troubling and hard for some to find success in. Knowing a deer’s seasonal habits‚ where to shoot‚ and the ethics of deer hunting can help one take a major step in becoming a successful deer hunter. One factor that can help someone
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White tailed deer (Odocoileus virginianus) are one of the most common species of mammals seen in North America‚ the most common of large animals actually. The last official count of deer in the USA and Canada was done in 1982‚ at which time 15000000 were found at an average of 3 deer in every square kilometer. The deer are very much native and were hunted even by Native Americans. You may have even seen this species yourself. Some of the most common places to find them are in your own backyard
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