Profits after taxes and depreciation charges

Assignment Help Microeconomics
Reference no: EM132423157

Problem: Rajan textiles is considering two investments each of which requires an initial investment of Rs. 18,00,000. The total cash inflow, that is profits after taxes and depreciation charges, for each project are:

Year 1 2 3 4 5 6 7

Project X 30,000 50,000 60,000 65,000 40,000 30,000 16,000

Project Y 60,000 1,00,000 65,000 45,000

Rajan's cost of capital is 8% Rank these investments by their excess present value. Which is the most profitable?

Reference no: EM132423157

Questions Cloud

How to implement and maintain the new webstore system : Pine Valley Furniture's board of directors is ready to review how to implement and maintain the new webstore system.
What were the main factors for the early success of oneplus : What were the main factors accounting for the early success of OnePlus? Will these factors still be relevant as OnePlus moves into the mainstream/mass market?
How blockchain implementation would improve data security : Discussing discussing how a blockchain implementation would improve data security in a military, education, or other context.
What is a treasury share : What is a treasury share? Explain the requirement under Section 67A, Companies Act 1965 for share repurchase.
Profits after taxes and depreciation charges : The total cash inflow, that is profits after taxes and depreciation charges, for each project are:
What is the present value of project : After three years, the project will be worthless. What is the present value of this project if the applicable discount rate is 15.25 percent?
How diversification is important in formation of capm : Assume the CAPM is used to form the weighted average cost of capital (WACC). Form a discussion on the CAPM in which you describe each of the following issues.
What is the unit sales price of companies : What is the unit sales price at which these companies will have the same break-even point in terms of unit sales?
Why are we developing and sharing content : List various content themes you can share on social aligned with objectives and content mission. Why are we developing and sharing content?

Reviews

Write a Review

Microeconomics Questions & Answers

  Discuss the products elasticity measures to set taxes

Government is known to utilize a product's elasticity measures to set taxes and subsidies. Why you believe it will work using the information you found.

  A monopolist faces demand given by p 100 - 4qd and has

a monopolist faces demand given by p 100 - .4qd and has marginal costs given by mc 10 .2qa. draw demand marginal

  What policy did the republican president use to address

The original macroeconomic problem using an AD/AS graph.What policy did the Republican President use to address the issue?

  What changes is there likely to be in these same cost curves

Suppose a business experiences a sudden increase in its fixed costs. What changes, if any, is there likely to be in these same cost CURVES

  Which are in place to manage our trade

Name trade policies which are in place to manage our trade with rest of world

  You have been asked to explain the differences between

you have been asked to discuss the differences between the microeconomic definitions of supply and demand and the

  Can you find a competitive equilibrium for this economy

Consider an exchange economy with two goods, fish and cheese, and two people, One and Two. Each person is endowed with .5 pounds of fish and .5 pounds of cheese. One's utility function is u(f, c) = fc, and Two's utility function is u(f, c) = f2+c2..

  Variable input in the transportation of crude oil

Which of the following is most likely to be a variable input in the transportation of crude oil?

  Explain the factors driving change in the industry

Analyze the factors driving change in the industry. Are there potential changes due to globalization or technology that might alter this industry? And if so, what are they?

  Can sensitivity analysis help in such a situation

In many cases a group of people must make a decision that involves multiple objectives. In fact, difficult decisions usually are dealt with by committees.

  Should the board have refused to parole cinelli

Should the board have refused to parole Cinelli? Why, or why not? Parole board members in essence are asked to try and predict the future. Is that a reasonable expectation?

  What type of security features will your hotel have

What type of security features will your hotel have? Select specific amenities that will help distinguish your hotel's brand. What type of management organization will your hotel possess?

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