Calculate the NPV of this project

Assignment Help Cost Accounting
Reference no: EM132774917

Question - ABC Ltd. is considering a project in US, which will involve an initial investment of US $1,10,00,000. The Project will have 5 years of life. Current spot exchange rate is '48/$. The risk free rate in US is 8% and the same in India is 12%. Cash inflows from the project are as follows:

Year - Cash Inflow

1 $20,00,000

2 $25,00,000

3 $30,00,000

4 $40,00,000

5 $50,00,000

Required - Calculate the NPV of the project using foreign currency approach.

Reference no: EM132774917

Questions Cloud

Find the net inflow to mr x : On 1 October 2015 Mr. X an exporter enters into a forward contract with a BNP Bank to sell US$1,00,000. Find the Net Inflow to Mr. X
Calculate the price that rump industries ltd ordinary shares : Calculate the price that Rump Industries Ltd ordinary shares should be selling for in the market, assuming Rump's growth projections are accurate
What do the metrics tell you about the company performance : What do the metrics tell you about the company's performance? Support your answer by explaining the results from your assessment
What is the company cost of equity capital : If the risk-free rate is 6.1 percent and the expected return on the market is 11 percent, what is the company's cost of equity capital
Calculate the NPV of this project : ABC Ltd. is considering a project in US, which will involve an initial investment of US $1,10,00,000. Calculate the NPV of the project
Calculate the tax on Interest Income : Dividend Income from company's 25% ownership in XYZ Ltd. $65,000. Calculate the tax on Interest Income, tax on Capital Gain and tax on Dividend Income
What is the amount of the cash flow to stockholders : The firm spent $481 on fixed assets and increased its networking capital by $32. What is the amount of the cash flow to stockholders
Prepare the entries to record the distribution to partners : Assume that 250,000 cash is available for initial cash distribution, prepare the entries to record the distribution to the partners
Compare the two options by preparing the pro forma statement : Compare the two options by preparing the pro forma statement of financial position for the year 2019. Identify any problem experienced by Serena

Reviews

Write a Review

Cost Accounting Questions & Answers

  Prepare the consolidated statement of profit

Calculate the goodwill on acquisition and prepare the consolidated statement of profit or loss of the Penguin Group for the year ended 31 December 20X9.

  November for oneida company. show supporting calculations

During the last week of August, Oneida Company's owner approaches the bank for an $ 100,000 loan to be made on September 2 and repaid on November 30 with annual interest of 12%, for an interest cost of $ 3,000.

  Determine which of the costing systems

Develop a company and determine what it will produce and sell. The requirement for this company is that it be a high-end, special-order type of manufactured product.

  What is the total manufacturing cost during the current year

What is the total manufacturing cost during the current year? What is the cost of goods manufactured during the current year?

  Paid 287600 cash plus 11500 in sales tax and 1500 in

paid 287600 cash plus 11500 in sales tax and 1500 in transportation for a new loader. the loader is predictable to have

  What are weiner ethical responsibilities

What are Weiner's ethical responsibilities under the IMA's standards? What guidance can Weiner follow on ethical conduct resolution

  What hrm consideration include in capital budgeting analysis

What HRM considerations might be included in this specific capital budgeting analysis? Be specific, how could cash inflows and outflows be analyzed.

  How might perry improve the management of the original store

Suggest at least two reasons for the discrepancy in the 2014 ending inventory. How might Perry improve the management of the original store?

  Compute the value of the cash flow in year

Compute the value of the cash flow in year 7.You are offered an investment opportunity that costs you $175,000, has an NPV of ($364.86)

  Forrest company manufactures watches and has a jit policy

Forrest Company manufactures watches and has a JIT policy that ending inventory must equal 10% of the next month's sales.

  Evaluate outstanding payroll tax

Will the state revenue agency collect the outstanding payroll tax from graeter under Federal joint and numerous liability rules for tax obligation of consolidated return affiliates?

  Determine the average cost per patient-day

Determine the average cost per patient-day

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