Total initial investment capital is 1,500 million VND for equipment. The installation of equipment and preparation for production will be completed by the end of year 0 of the project. The operation of the project will last for 3 years. The life of the equipment is 6 years, the residual value after 6 years is 0. In year 1, the project's revenue is 600 million VND and operating costs (excluding depreciation and interest expenses) are 150 million VND. It is expected that revenue will grow at 10% per year over the life of the project, and operating expenses (excluding depreciation and interest expenses) increase at 8% per year. To finance the project, the investor borrowed 60% of the total initial investment capital from a bank with an interest rate of 10%/year, the principal is paid in 3 years equally starting from the end of year 1. Interest is paid annually; it is calculated on the debt amount owned at the beginning of each year. The equipment is depreciated using the straight-line method and its disposal value is equal to its book value at the end of year 3 and is received at the end of year 3. The corporate income tax rate is 20%. MARR after tax is 10%3) Construct the table to show:a. Before tax cashflowb. Taxable incomec. Tax paymentd. After tax cashflowThank youu

Perit Industries has $180,000 to invest in one of the following two projects:  Project A Project BCost of equipment required $ 180,000   $ 0  Working capital investment required $ 0   $ 180,000  Annual cash inflows $ 32,000   $ 54,000  Salvage value of equipment in six years $ 9,300   $ 0  Life of the project 6 years 6 yearsThe working capital needed for project B will be released at the end of six years for investment elsewhere. Perit Industries’ discount rate is 15%.Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables.Required:Compute the net present value of Project A.Note: Enter negative values with a minus sign. Round your final answer to the nearest whole dollar amount.Compute the net present value of Project B.Note: Enter negative values with a minus sign. Round your final answer to the nearest whole dollar amount.Which investment alternative (if either) would you recommend that the company accept?

Information for two alternative projects involving machinery investments follows:   Project 1 Project 2Initial investment $ (124,000) $ (94,000)Salvage value 0 14,000Annual income 13,640 12,960a. Compute accounting rate of return for each project.

Suppose that there are 5 possible investment projects that can be undertaken in the macroeconomy: Projects A - E.  For simplicity, each project has an up-front cost of $100, and the project lasts for just one year: there is no depreciation (d = 0), and we'll suppose (silly!) that the machine just vaporizes at the end of the year it's installed.  So, there are 3 relevant details:  the up-front cost ($100); the (real) revenue each project returns one year later, and the real interest rate.  The following table summarizes:ProjectCost (today)(real) revenue in 1 year from todayPV of the (real) revenue when the real interest rate is…2%4%6%A$100$101$99.02 B$100$103 $97.17C$100$105 D$100$107 $102.88 E$100$109 Complete the missing cells in the table, which involves figuring out the present value of the one-year-ahead revenue for each project, and for each of the three interest rate (r) options.

What is the NPV of a 6-year project that costs $100,000, has annual revenues of $50,000 and costs of $15,000? Assume the investment can be depreciated for tax purposes straight-line over 6 years, the corporate tax rate is 21%, and the discount rate is 14%.Question 4

Esfandairi Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.18 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $1.645 million in annual sales, with costs of $610,000. The tax rate is 21 percent and the required return on the project is 12 percent. What is the project’s NPV? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.)