User Account

All Pages

What is the irr of project-mitec inc

Assignment Help Finance Basics
Reference no: EM132596488

The Mitec Inc. is planning to purchase a new production machine. The startup cost of purchasing and installing the machine is $1,000,000. The machine will generate revenue of $500,000 each year for the next 10 years, and all costs including costs of raw materials, labor, utilities, and taxes are $300,000 per year. The machine will require maintenance at the end of every two years, costing $100,000 each time. At the end of the ten years, the company needs to spend $50,000 to divest the machine. The cost of capital for this project is 6%.

What is the IRR of this project?

Reference no: EM132596488

Questions Cloud

Provision of incorrect information : Give an example of the problem that could be caused by wrong information in a bank.
Which option should the firm choose : The Promoter Chairperson of a leading Jewellery chain in Kerala had recently procured a Corporate Jet. Which option should the firm choose
How compute amount of cash disbursements for the month : How Compute amount of cash disbursements for the month. The company pays for half of the purchases in the current month and the other half
Identify and describe the decision-making process : Identify and describe the decision-making process you will adopt to help you in your purchase decision - identify and describe the requirements for effective
What is the irr of project-mitec inc : The Mitec Inc. is planning to purchase a new production machine. The startup cost of purchasing and installing the machine is $1,000,000.
Compute the payback and the discounted payback period : Compute the payback period and the discounted payback period that you would communicate to the management
Cost of insurance be per month : Tom and Nancy want to buy a house in a particular neighborhood. they have two children ages 1 and 4. The average price home
How much depreciation expense should Dirt record : Using the same depreciation method as used in 20x5, 20x6, and 20x7, how much depreciation expense should Dirt record in 20X8 for asset B
Compute the amount of cash disbursements for the month : Materials, Interest is paid at the end of the month with no principal payment. Compute the amount of cash disbursements for the month.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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