Statistic
Submitted by: Submitted by pranavghule123
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Category: Other Topics
Date Submitted: 08/17/2011 05:40 AM
sSQM ASSINGMENT PRANAV GHULE
L0910KMKM0211
Question 1 - Payback:
A. Poultry
$000 | |
Investment | Cash flows |
y0 (1300) | |
| |
y1 | 250 |
| |
y2 | 320 |
| |
y3 | 380 |
| |
y4 | 450 |
| |
y5 | 480 |
| |
| |
| |
| |
Payback in between 1/3 and ¼
250+320+380 = 950
1300-950 = 350/450 * 12 = 9.3
3 years 9 months.
Project B.
$000 | |
Investment | Cash flows |
y0 (2300) | |
| |
y1 | 650 |
| |
y2 | 650 |
| |
y3 | 420 |
| |
y4 | 680 |
| |
y5 | 700 |
| |
| |
Between y3 and y4
=2300 – 1720 =580/680 *12
= 3 years 10 months.
Project C.
$000 | |
Investment | Cash flows |
y0 (1800) | |
| |
y1 | 290 |
| |
y2 | 345 |
| |
y3 | 550 |
| |
y4 | 580 |
| |
y5 | 600 |
| |
| |
| |
| |
between y4 and y5
= 1800 – 1765 = 35/600 *12
= 4 years 0.7 months
Project D.
$000 | |
investment | cash flows |
y0 (850) | |
| |
y1 | 165 |
| |
y2 | 180 |
| |
y3 | 250 |
| |
y4 | 290 |
| |
y5 | 350 |
| |
Between y3 and y4
= 850 + 595 = 255/290 * 12
= 3 years 11 months.
Net Present Value:
Project A.
| $000 | | |
investment | cash flows | 10% discount | Present Values |
y0 (1300) | | 1 | -1300 |
| | | |
y1 | 250 | 0.909 | 227.25 |
| | | |
y2 | 320 | 0.826 | 264.32 |
| | | |
y3 | 380 | 0.751 | 285.38 |
| | | |
y4 | 450 | 0.683 | 307.35 |
| | | |
y5 | 480 | 0.621 | 398.08 |
| | | |
| | | |
| | | |
| | NPV= | 182.38 |
| | | |
Project B.
| $000 | | |
investment | cash flows | 10% discount | Present Values |
y0 (2300) | | 1 | -2300 |
| | | |
y1 | 650 | 0.909 | 590.85 |
| | | |
y2 | 650 | 0.826 | 536.9 |
| | | |
y3 | 420 | 0.751 | 315.42 |
| | | |...
