Question: A B D E F G H 1 J K L M N o P Q R S 1 4 15.00% Year FCF 0 -10,000.00

A B D E F G H 1 J K L M N o P Q R S 1 4 15.00% Year FCF 0 -10,000.00 2 1 4,000.00 800.00 2 4,000.00 800.00 3 4,000.00 800.00 4,000.00 800.00 5 4,000.00 800.00 3 NI WACC NPV IRR MIRR PI 4 SV 1,000.00 5 6 Year 0 1 2 3 4 5 PBP 7 FCF DPBP Omega Limited is planning on investing in a new project. This will involve the purchase of some new machinery costing $10 thousands that will be fully depreciated over 5 years. The salvage value is $1 thousand at the end of year 5. Omega Limited expects to receive cash flows of $4 thousands at the end of each year for five years. Omega Limited expects to receive net income of $800 at the end of each year for five years. The weighted average cost of capital is 15%. 1. Calculate net present value (NPV) for this project. 2. Calculate internal rate of return (IRR) for this project. 3. Calculate modified internal rate of return (MIRR) for this project. 4. Calculate profitability index (Pl) for this project. 5. Calculate payback period (PBP) for this project. 6. Calculate discounted payback period (DPBP) for this project. 7. Calculate accounting rate of return (ARR) for this project. ARR 0 1 2 3 4 5 8 CFCF 9 10 Year 11 FCF 12 DFCF 13 CDFCF 14 15 16 17 19
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