Calculation Of Annual Value And Present Value For A Project

Question

The cash flow for an engineering project is given below:

End of year

0

1

2

3

4

5

Cash flow, $

-x

y

l-2y

1.4y

1.6y

1.8y

Where x = $3,500,000, y = $800,000 and the interest rate is z %.

Determine:

  • the equivalent uniform annual value for the cash flow, if z = 8 % annually compounding
  • the payback period
  • the present value of the cash flow, if z = 8 % per year – quarterly compounding
  • the interest rate (the value of z), if the present value of the cash flow is $450,000
  • the reinvestment rate, if the external rate of return is 6 %
  • the external rate of return, if the re-investment rate is 10 % yearly compounding
  • the internal rate of return

Summary

The question belongs to Finance and it discusses about calculation of annual value, present value of cash flow and internal and external rate of return for a project.

Total Word Count NA

Download Full Solution

Comments

  • HWA
    Rasha

    this is a very good website

  • HWA
    maani

    I have 50 questions for the same test your page is showing only 28

  • HWA
    joeanne

    hi can you please help or guide me to answer my assignments. thanks

  • HWA
    joeanne

    hi can anyone help or guide me to my assignments. thanks

  • HWA
    Monik


  • HWA
    Cristina

    This solution is perfect ...thanks

  • HWA
    Janete

    Hello Allison,I love the 2nd image that you did! I also, had never heard of SumoPaint, is something that I will have to exolpre a bit! I understand completely the 52 (or so) youtube videos that you probably watched. Sometimes they have what you want, sometimes they don't! However, it is always satisfying when you are able to produce something that you have taught yourself. Great job!Debra 0 likes

  • HWA
    Sandeep

    Perfect bank of solution. 

  • HWA
    Oxana

    great !

  • HWA
    Paul Brandon-Fritzius

    thanks for the quick response. the solution looks good. :)

  • HWA
    tina Johnson

    thnx for the answer. it was perfect. just the way i wanted it. 

  • HWA
    Giuseppe

    works fine.