60.1K

Verified Solution

Link Copied!

An investment project in which the value of the land is 10,000 dinars, the buildings are 20,000 dinars, and the machinery is 15000 dinars. The construction period is one year, if you know that the project will employ a manager with a monthly salary of 1500, and five administrative and technical staff, each with a salary of 600 dinars per month. The other operational cost of the project is 10,000 dinars annually and revenues are 80,000 dinars annually. The value of the land at the end of the life of the project in the tenth year is 15000 dinars and the depreciation of buildings is 2000 dinars annually, and machinery is 1000 dinars annually. . According to the above data, calculate the following: 1) Payback period. 2) The net present value of the project. 3) internal rate of return.

An investment project in which the value of the land is 10,000 dinars, the buildings are 20,000 dinars, and the machinery is 15000 dinars. The construction period is one year, if you know that the project will employ a manager with a monthly salary of 1500, and five administrative and technical staff, each with a salary of 600 dinars per month. The other operational cost of the project is 10,000 dinars annually and revenues are 80,000 dinars annually. The value of the land at the end of the life of the project in the tenth year is 15,000 dinars, and the depreciation of buildings is 2,000 dinars annually, and machinery is 1,000 dinars annually. . According to the above data, calculate the following: 1) Payback period. 2) The net present value of the project. 3) internal rate of return.

Discount rate is 10%

Required rate of return is 10%

Answer & Explanation Solved by verified expert

See Answer