## Sunday, August 25, 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 IRRÃ‚  Ã‚  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 YearÃ‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Cash FlowÃ‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Present Value Ã‚  0Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   -1,000,000Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   -\$1,000,000 Ã‚  1Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   1400000Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   \$181,818.18 Ã‚  2Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   1000,000Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   \$247,933.88Ã‚   Ã‚  3Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   1000,000Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   \$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 IRRÃ‚  Ã‚  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 YearÃ‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Cash FlowÃ‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Present Value Ã‚  0Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   -1,200,000Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   -\$1,200,000 Ã‚  1Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   0 Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   -1200000