Question: Hello, I have another finance assignment that I need help with. 1. Your firm is considering investing a new truck to be used to make
Hello, I have another finance assignment that I need help with.

1. Your firm is considering investing a new truck to be used to make deliveries. The truck costs $40,000 and has an expected useful life of 10 years. The discount rate for an investment of this nature is 8%. a. If the truck is expected to generate operating cash inflows of $6,000 per year, would you recommend your firm pursue this investment opportunity? b. If the truck is expected to generate operating cash inflows of $6,000 per year AND have a salvage value in 10 years of $5,000, would you recommend your firm pursue this investment opportunity? 2. You work for a company with the following projects under consideration: Project\\Year A B C 0 -3,100 -1,500 -5,000 1 800 400 1,300 Cashflows ($) 2 3 800 800 400 400 1,300 1,300 4 800 400 1,300 5 800 400 1,300 The discount rate for these projects is 8%. a. Which, if any, of these projects would you recommend your company pursue? b. If your company only has $5,000 to invest, what is your recommendation as to how to invest that capital? 3. You work for a company considering purchasing assets that are expected to generate cash inflows of $15m per year for 15 years. The assets cost $100m. Investments of this nature have a discount rate of 12%. a. What is the payback period of this investment opportunity? b. If your company has a policy of rejecting investment opportunities that have a payback period greater than 5 years, would you accept this investment opportunity? c. Should you accept this investment opportunity? d. Describe the calculation necessary to compute the Internal Rate of Return (IRR) of this investment opportunity. e. Use Excel to compute the IRR of this investment opportunity
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