Test. Accounting for the time factor when evaluating the effectiveness of investment projects.
Problem number 1 (on "Accounting for the time factor when evaluating the effectiveness of investment projects")
"Parish Engineering" expects to include in its annual budget ka-pitalovlozheniya in two types of equipment: a truck and a system of lifts. These projects are not mutually exclusive. Cash kapitalovlozhe¬niya a truck up to $ 17,350., And a system of lifts - 24,225 dollars. The cost of capital of the company is 15%. Cash flows after tax, including depreciation, are as follows: trucks - 5 $ 300. Per year for 10 years; Loaders - 8 $ 100. per year for 6 years.
Calculate the IRR, NPV and payback time factor for each project and mark each correct decision - to accept or reject.
Problem number 2 (on a theme: "Accounting for risk when assessing the effectiveness of investment projects").
The company is considering a project that will bring $ 5 million after-tax profit for the year. The ratio between loans and assets of the company is 0.5, the value of assets is 29.2% and the cost of the loan - 10%. This project is directly related to the core business of the company and belongs to the same risk. Whether it is necessary to carry out this project? If any required investment project will be effective?
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