Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 4 views

    Acmas - BB Company Solutions

    Uploaded by

    cds.f0703

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    Acmas - BB Company Solutions

    Uploaded by

    cds.f0703
    4 views4 pages

    Original Title

    ACMAS_BB COMPANY SOLUTIONS

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    4 views4 pages

    Acmas - BB Company Solutions

    Uploaded by

    cds.f0703

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 4

    Given Information

    Machinery 282,000
    UL (SLD) 4
    ACI 100,000
    IT % 30%
    DR % 12%
    Dep 70500
    Solving ACIAT
    ACIAT
    ACI 100,000 *
    Dep 70,500 *
    ACIAT
    A. What is the IRR of this project?
    IRR Investment /
    282,000
    IRR 3.0938
    Comparing IRR Factors
    11%
    3.102 3.093
    0.009is 11%, because 3.093
    Answer: The IRR of this project
    is much closer to 3.102 than 3.037. In which 3.102
    corresponds to 11%.
    40,000
    15,000
    40,000
    B. Find NPV
    PV 0.636 Cash Inflows
    PVA 3.037 91,150 * 3.037 276822.6

    Cash Outflows
    282,000 * 1 282,000
    NPV -5,177

    0.7 70000 C. Find PI


    0.3 21150 276,823 / 282,000 98.16%
    91150
    D. Get 12% IRR
    ACIAT 5,177 / 3.037 1704.643
    91150 1704.643 / 0.7 2435.204
    2435.204 + 100,000 102,435

    12% E. Find NPV, if asset is depreciated over 3 years


    3.037 Cash Inflows
    0.056
    s 11%, because 3.093 70,000 * 3.037 212,590
    7. In which 3.102 28,200 * 2.402 67,736
    280,326
    Cash Outflows
    282,000 * 1 282,000
    NPV -1,674

    F. Find NPV, if +12,000 WC


    Cash Inflows
    91,150 * 3.037 276822.6
    12,000 * 0.636 7632
    284454.6

    Cash Outflows
    282,000 * 1 282,000
    12,000 * 1 12,000
    294,000
    NPV -9,545
    Original NPV -5,177
    Decrease 4,368

    G. Find NPV, if asset is replaced


    ACIAT
    100,000 * 0.7 70000
    DTS
    70,500 - 6,250 64,250
    64,250 * 0.3 19275
    ACIAT 89275
    Cash Inflows
    89,275 * 3.037 271128.2
    - 25,000 15,000
    * 0.3 4500 Cash Outflows
    - 4500 35,500 282,000 * 1 282,000
    35,500 * 1 -35,500
    246,500

    NPV 24,628

    You might also like