A machine that tiles costs r120 000 to install its, Ask an Expert

Finance

A machine that tiles costs R120 000 to install. Its economic life is expected to be 20 years and it costs R 15 000pa to maintain. annual net income is expected to be R25 000. Use a 10% pa interest rate. Tha bank interest for deposit is 8,5%. Is this project viable and why? Show your calculations. Tip: calculate the NPV for this project.

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91053381

Have any Question?Write your Review or question?

Related Questions in Basic Finance

You currently have 120000 in a bond account and 500000 in a

You currently have $120,000 in a bond account and $500,000 in a stock account. You plan to add $5,000 per year at the end of each of the next 10 years to your bond account. The stock account will earn a return of 10.5 pe ...

Your goal is to save 1000000 at retirement in 5 years you

Your goal is to save $1,000,000 at retirement in 5 years. You expect you can earn 12.50% over the next 5 years. How much money do you have to save on an annual basis to reach your goal?

Jack has his new atm business up and running customer

Jack has his new ATM business up and running. Customer interest has been high. He has employed several experienced sales people in hopes of a rapid expansion. Jack has negotiated a deal with the manufacturer where the co ...

Your firm spends 5200 every month on printing and mailing

Your firm spends $ 5,200 every month on printing and mailing? costs, sending statements to customers. If the interest rate is 0.52% per? month, what is the present value of eliminating this cost by sending the statements ...

1 what considerations do you need to take when considering

1. What considerations do you need to take when considering "time value of money"? 2. Why is the following statement true? "A dollar today is worth more than a dollar tomorrow."

Corn in has an odd dividend policy the company has just

Corn, In., has an odd dividend policy. The company has just paid a dividend of $6 per share and has announced that it will increase the dividend by $2 per share for each of the next four years, and then never pay another ...

The required return is 11 the dividend growth rate is 5 the

The required return is 11%, the dividend growth rate is 5%, the retention rate is 60%, and the payout rate is 40%. What is the justified, forward P/E ratio?

Ecolap inc ecl recently paid a 046 dividend the dividend is

Ecolap Inc. (ECL) recently paid a $0.46 dividend. The dividend is expected to grow at a 12.50 percent rate. The current stock price is $49.72. What is the return shareholders are expecting?

1 construct an amortization schedule for the 300000 loan

1. Construct an amortization schedule for the $300,000 loan with a 3.5% interest rate compounded monthly. The loan will be paid back in 15 years making monthly payments. Identify the principal and interest payment of ea ...

Question - you purchase a machine for 100000 such machine

Question - You purchase a machine for $100,000. Such machine has a 3-year MACRS classification. If the machine is sold at the end of the second year for $45,000, what are the after-tax proceeds from the sale, assuming yo ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Basic Finance Expert