NFC Berhad NFC Berhad (NB)'s new farmland project will cost RM5 million inclusive of machineries expenditure...
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NFC Berhad NFC Berhad (NB)'s new farmland project will cost RM5 million inclusive of machineries expenditure of RM 1 million. The machineries will be sold at the end of the project with estimated 10% of the original cost to be recovered. The projected operating cash flows as per details: 3 4 5 Year 1 OCF 2,660,000.00 The cost of capital is at 6.13%. Year 0 1 2 3 1. Calculate the Initial Outlay of the project. 2. Calculate the Terminal Value of the project. 3. Complete the following assessment of the project viability based on Capital Budgeting Model. 5 2 Total OCF 2,750,000.00 1,800,000.00 1,000,000.00 500,000.00 PV FV 4. Calculate the Payback Period. 5. Calculate the Discounted Payback Period. Calculate the Net Present Value (NPV). 6. 7. Calculate the Profitability Index (PI). 8. Calculate the Modified Internal Rate of Return (MIRR). % 9. Based on Equivalent Annual Annuity, calculate the annualized payment of the project. NFC Berhad NFC Berhad (NB)'s new farmland project will cost RM5 million inclusive of machineries expenditure of RM 1 million. The machineries will be sold at the end of the project with estimated 10% of the original cost to be recovered. The projected operating cash flows as per details: 3 4 5 Year 1 OCF 2,660,000.00 The cost of capital is at 6.13%. Year 0 1 2 3 1. Calculate the Initial Outlay of the project. 2. Calculate the Terminal Value of the project. 3. Complete the following assessment of the project viability based on Capital Budgeting Model. 5 2 Total OCF 2,750,000.00 1,800,000.00 1,000,000.00 500,000.00 PV FV 4. Calculate the Payback Period. 5. Calculate the Discounted Payback Period. Calculate the Net Present Value (NPV). 6. 7. Calculate the Profitability Index (PI). 8. Calculate the Modified Internal Rate of Return (MIRR). % 9. Based on Equivalent Annual Annuity, calculate the annualized payment of the project.
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1 Calculate the Initial Outlay of the project Initial Outlay Machineries Expenditure Other Expenditu... View the full answer
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-1259569197
8th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Olds
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