It will be the positive stage in my opinion
        
             
        
        
        
Answer:
Amount	$55,386.92
Explanation:
We solve for the outstanding amount after July 1998 payment and then future value until Jan 1st 2005:
 Beginning	Payment	Interest	Carrying value
1995	40000          4000     44000
1996	44000	-5000	3900     42900
1997	42900	-5000	4290      42190
1998	42190	-5000	2109.5     39299.5
1998	39299.5	-10000	1964.975     31264.475
Now, we calculate the future value from Jan 1999 to Jan 2005:
 
 
Principal	31,264.48
time	6.00
rate	0.10000
 
 
Amount	55,386.92
 
        
             
        
        
        
Given:
<span>initial investment 2,000,000. 
the new facility will generate annual net cash inflows of $520,000 for ten years. 
engineers estimate that the facility will remain useful for ten years and have no residual value.
Payback period = Initial Investment / Cash Inflow per period
Payback period = 2,000,000 / 520,000
Payback period = 3.85 years or 3 years and 10 months.
Accounting Rate of Return (ARR) = Average Annual Profit / Average Annual Investment
Average annual profit = 520,000
Average annual investment = 2,000,000 / 10 years = 200,000
ARR = 520,000 / 200,000 = 2.60 or 260%
NPV = 520,000 * [(1-(1.14)</span>⁻¹⁰ /0.14)] - 2,000,000
<span>NPV = 520,000 * 5.216 - 2,000,000
NPV = 2,712,320 - 2,000,000
NPV = 712,320
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Is a financial metric that indicates how efficient a business is at managing its operations. It is a ratio that indicates the performance of a company's sales based on the efficiency of its production proces