1)ABC Medical centre is studying a project that would have an eight-year life and require...
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1)ABC Medical centre is studying a project that would have an eight-year life and require a $1,600,000 invest in equipment. At the end of eight years, the project would terminate and the equipment would have no salvage value. The project would provide net cash-in each year $500,000. The interest rate is 17%.
Required:
A. Compute the present value of net annual cash inflow from the project
B. Is the project acceptable?
2)Please find out how much money the business invest today to get the future project benefit $5000 after 7 years if interest is 4.88% p.a compound monthly?
1)ABC Medical centre is studying a project that would have an eight-year life and require a $1,600,000 invest in equipment. At the end of eight years, the project would terminate and the equipment would have no salvage value. The project would provide net cash-in each year $500,000. The interest rate is 17%.
Required:
A. Compute the present value of net annual cash inflow from the project
B. Is the project acceptable?
2)Please find out how much money the business invest today to get the future project benefit $5000 after 7 years if interest is 4.88% p.a compound monthly?
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