The writer is very fast, professional and responded to the review request fast also. Thank you.
Question 4: HELP
Refer to Questions 2 and 3. The land for the factory will cost $290,000. The factory will cost $6,440,000 to build and construction will take two years with construction costs payable in equal installments at the start of each year.. The factory will operate for 20 years; however, at the end of the fifth, tenth, and fifteenth year of operation, refurbishment costs will be $440,000. At the end of its 20 year lifespan, the land can be resold for $310,000. There is a 70% probability that the factory’s net operating cash flows will be $675,162 however, there is a 30% chance that net cash flows will only be $413,362. You may assume that net operating cash flows flow at the end of each year.
a) What are the Expected net operating cash flows per year? (Round your answer to 2 decimal places)
b) What is the Internal Rate of Return for the project? (Round your answer to one one-hundredth of a percent)
c) What is the Net Present Value of the project? Round your answer to 2 decimal places)
d) Should Anna recommend that the J Corporation build the factory?
Cost of LandCost of factoryRefurbishment costLifeResale value of land 290000644000044000020310000 Probability OCF70%30% Calculating the expcted cash flowExpected cash flow === 675162…
Show more
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more