Friday, October 18, 2019
New World Resource Assignment Example | Topics and Well Written Essays - 2750 words
New World Resource - Assignment Example e net present value therefore is NPV= -1,000,000+( 8000/1.10 +200000/1.12 + 800,000/1.13+820000/1.14+ 970,000/1.15) = 704045.20 Internal rate of return Year () Cash flow () 0 -1000000 1 8000 2 200000 3 800000 4 820000 5 970000 Then the IRR  is NPV= -1,000,000+( 8000/(1.1+r) +200000/(1.1+r)2 + 800,000/(1.1+r)3+820000/(1.1+r)4+ 970,000/(1.1+r)5) r = 15.20% Project 2: Code name: Zeta Net profit -3,000,000 1,400,000 1,000,000 1,000,000 800,000 600,000 Net profit Net profit = total revenue- initial investment. ... = 4800000 /3000000 = 1.6 Net present value Year            Cash Flow                Present Value  0                -1,000,000                -$1,000,000  1                 1400000                  $181,818.18  2                 1000,000                  $247,933.88  3                 1000,000                  $150,262.96 4 800,000 5 600,000 Net Present Value = $80,015.02 The net present value therefore is NPV= -3,000,000+( 1400000/1.10 +1000000/1.12 + 1000,000/1.13+800000 /1.14+ 600,000/1.15) NPV= 927093.80 Internal rate of return Then the IRR  is NPV= -3,000,000+( 1400000/(1.1+r) +1000000/(1.1+r)2 + 1000,000/(1.1+r)3+800000/(1.1+r)4+ 600,000/(1.1+r)5) = 15.25 % Project 3: Code name: Lambda -1,200,000 0 400,000 900,000 1,000,000 700,000 Net profit Net profit = total revenue- initial investment. Net profit=3000000-1200000 = 1800000 Payback period Payback Period = Initial Investment Cash Inflow per Period Since the cash flow is uneven, Then Payback Period = A +(B/C) Cash Flows Cumulative Cash Flow Year Cash Flow 0 (1200000) (1200000) 1 0 (1200000) 2 400000 (800000) 3 900000 100000 4 1000000 1100000 5 700000 1800000 Payback Period = 2 + (|800000| ? 900000) ? 2 + 0.88 ? 2.88 years Return on investment Return on investment = totol amount gained/totol amount invested. = 3000000/1200000 = 2.5 Net present value Year            Cash Flow                Present Value  0                -1,200,000                -$1,200,000  1                 0                  -1200000
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