Calculate the npv and irr

Assignment Help Financial Accounting
Reference no: EM132998887

Question - Fijisawa, Inc., is considering a major expansion of its top-selling product line and has estimated the following cash flows associated with the expansion. The initial outlay will be Rs 10,00,000, and the project will generate cash flows of Rs 2,00,000 per year for 10 years. The appropriate discount rate is 10 percent.

i. Calculate the NPV.

ii. Calculate the PI.

iii. Calculate the IRR.

iv. Should this project be accepted? Why or why not?

Reference no: EM132998887

Questions Cloud

Determine the break-even point in patients : Determine the break-even point in patients. San Juan Health Department's dental clinic projects the costs and rates for the year 20XX.
Calculate the weights of each asset in portfolio : You have $375,000 to invest in a share portfolio. Your choices are as follows: Invest in FTV with an expected return of 14.25%. Invest in FHL with an expected r
Calculate the average stock return : Calculate the average stock return from 2007-2009, standard deviation and coefficient of variation for same period. The firm has 400,000 shares authorized.
An analysis and evaluation of the performance : Project you would recommend to senior management of Aisha Plc under each technique and state your reason why you would recommend that machine
Calculate the npv and irr : The initial outlay will be Rs 10,00,000, and the project will generate cash flows of Rs 2,00,000 per year for 10 years. Calculate the NPV and IRR
What are constructive disagreements among professionals : What are constructive disagreements among professionals? Some people get defensive when their authority/decisions are questioned. How can that be addressed?
How entries would be different if tlk followed ifrs instead : Explain how these entries would be different if TLK followed IFRS instead. TLK Industries Limited purchased a strip mine for cash on April 1, 2020 at a cost.
What is the firms cost of preferred stock : A company's perpetual preferred stock currently trades at $87.50 per share and pays an $8.00 annual dividend. What is the firms cost of preferred stock
Find annual rate of return on account : An investor who was not as astute as he believed invested $269,000 into an account 14 years ago. Today, that account is worth $207,600. What was the annual rate

Reviews

Write a Review

Financial Accounting Questions & Answers

  Prepare the necessary calculations and journal entries

During the reporting period ending 30 June 2020, Prepare the necessary calculations and journal entries for 30 June 2020, 30 June 2021 and 30 June 2022.

  Are any foreign tax credit carrybacks-carryovers available

Foreign Tax Credit Limitation. During the current year, Jackson, a U.S. corporation and accrual method taxpayer, engages in both U.S. and foreign business activities. What is the amount of Jackson's foreign tax credit. Are any foreign tax credit carr..

  Computation of pay back periodaccounting rate of return

computation of pay back period.accounting rate of return payback and npv busy beaver corp. is interested in reviewing

  What amount of interest revenue included in income statement

What amount of interest revenue (rounded to the nearest dollar) should be included in Biltmore's 2020 income statement

  What is the project npv for century roofing

No new working capital would be required, and revenues and other operating costs would be constant over the project's 3-year life. What is the project's NPV?

  Calculation of terminal flowon june 30 1997 post sold for

calculation of terminal flow.on june 30 1997 post sold for 230.000 a machine acquired in 1994 for 420.000. the

  Employee cumulative earnings for the year

the employees cumulative earning for the year prior to this week equal $6,200. the employee's cumulative earnings for the year prior to this week equal $98,700.

  Prepare current liability section of red banks balance sheet

Prepare journal entries to record the transactions and prepare adjusting entries on October 31 to record accrued interest.

  Differentiate between different types of accounts

Differentiate between different types of accounts) Bill Hooper opened a software consulting firm that immediately paid $6,000 for a computer. Was Hooper’s computer an expense of the business? If not, explain.

  Find cost of goods sold-value of ending inventory

Troy Baker Inc. reported these transactions during July. Beginning inventory was 1,000 units all at $50/unit. Find: Cost of goods sold, Value of ending inventory, and Gross profit if Troy Baker uses FIFO and a personal inventory system.

  Calculate eco current weighed average cost of capital

Calculate Eco's current weighed average cost of capital. As the chef financial officer of a young company with lots of investment opportunities

  Differences between the two accounting systems

Question - In this assignment compare U.S. GAAP vs. IFRS for investments. Describe the main differences between the two accounting systems

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd