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
</span>
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
