Determine the internal rate of return on the following project: An initial outlay of $10,000 resulting in a single cash flow of $17,182 after 8 years. A calculator costs $5/unit to manufacture and can be sold for $20/unit. 4 A project has an initial investment of 100 You have come Calculate the capitalized cost of a project that has an initial cost of Php 3,000,000 and an additional investment cost of Php 1,000,000 at the end of every 10 years. exam 10 Flashcards | Quizlet , All other trademarks and copyrights are the property of their respective owners. 1) What is the project payback period if the initial cost is $1,650? Calculating Payback: An investment project provides cash inflows of $970 per year for eight years. AssetsCashAllotherassetsTotalassetsLiabilitiesTotalliabilitiesStockholdersequityCommonstockRetainedearningsTotalstockholdersequityTotalliabilitiesandstockholdersequity$118d$e$4833fg$h, Discounted cash flow (DCF) analysis generally, assumes that firms hold assets passively when it invests in a project, A firm's capital investment proposals should reflect. A project has an initial outlay of $2,184. Fixed cost for the firm is $20,000\$20,000$20,000. 1.20 Initial Investment = 100,000Present value of future cash flows = 120,000Profitability index = ? We and our partners use cookies to Store and/or access information on a device. Learn its importance and uses. -50, 20, +100. In most cases, an initial investment is the first of many more payments and deposits that will happen over the lifetime of the account or investment vehicle. The cash flows generated from the project are $120,000 in year 1, $80,000 in year 2, $X in year 3 and $90,000 in year 4. The quantity of oil Q = 200,000 bbl per year forever. Profitability Index | Definition, Formula & Example - XPLAIND.com The 5%rate of returnmight be worthwhile if comparable investments of equal risk offered less over the same period.