- Question 5 Use The Information Provided To Answer The Questions 5 1 Use The Information Provided Below To Calculate The 1 (48.84 KiB) Viewed 9 times
INFORMATION Zeda Enterprises has the option to invest in machinery in projects A and B but finance is only available to invest in one of them. You are given the following projected data: Initial cost Scrap value Depreciation per year Net profit Year 1 Year 2 Year 3 Year 4 Year 5 Net cash flows Year 1 Year 2 Year 3 Year 4 Year 5 Additional information The discount rate used by the company is 12%. Project A R300 000 R40 000 R52 000 R20 000 R30 000 R50 000 R60 000 R10 000 Project B R300 000 0 R60 000 R90 000 R90 000 R90 000 R90 000 R90 000
5.2 Use the information provided below to calculate the Internal Rate of Return (expressed to two (5 marks) decimal places) using interpolation. INFORMATION A machine with a purchase price of R1 200 000 is estimated to eliminate manual operations by R400 000 per year. The machine is expected to have a useful life of four years. APPENDIX 1: PRESENT VALUE OF R1
Number d Periods 1 2 3 4 5 7 8 9 10 1 12 13 15 17 8 19 8 15 50 2% 8 # V 7% # $ 13% 14% 15% 16% 3 6 0.580 19812 0905 004 000000008734 08573 0841708354 08116 0.792 0.7831 0.7685 07581 07432 07305 07182 07062004405400 0.50609423 0915105800803608165 0.7238 0.7722 07513 07312 07118 0831 08750 08575 064 06344 0608605334 05 05120 0.5810 0925565025480822707921 0.7529 0.750 0.70840683006587063508135 05621 05718 05523 05337 05158048704823 09815 1957 1855 08219 078507475 07130 05806 05430 06209 0:5335 05674 05425 05194 04372 04781 049 04371 041004010377 * 0.5430 0888008375 0.750 0.7462 0.7050 0.83 0.32 0.56305645 0534 050504803 04556 0.4325 04104 0388 03704 03821 03340 0221 0560708705 081310750 0.7107 08651 06227 0583505470 0515204817052304251 03986 0.3750 0.3538 0332 03130029590271 05143 1838 0786407025 0544805919 05439 0500204804043410390903600339 03075 02543 02830 02434 02255 0200001938 01342 08528 0.72840623205339045810393 033702919 02519 0217501883 01631 01415 0.229 0.19 0.0000001140708001001 0.1678 12 0.8277 0685405700047480357 0.335 0275 02317 0.1945 135 1377 0.1161 081 08390750.0536 0.0505 00431 00367 00313 02144 03074 0.8700 4.7579 08611 05775 05091 04425 03876 0.3405 022 02833 023200204801807 0.15 0.1415 0.1252 01110 05 087 00779 00440 0859 08613 07430 05419 058530410 04173 03534 03152 02745 02354 02000018270159 0.1401 0.1229 01079 0.00400003 004 02 DOST 08444 07142 06250 05134 0433 03714 03166 0273 02311 01578186 0.1456 0.1252 0.1078 0.299 0.082 0.000000000520 00451 025 30 0.3419 05522402003083 02314 0.1741 01314 004 0054 2057300437 00334 02560019600151 20115 000 200 0005400042 00012 08080037150228103407082 02543 039 0.0213 00134 2005 20054 0000 002 0014 000 0.000 0.0004 0000000000001 0.550403048 0160700051 055 0500175 0.0009 0.0057 205320019 0201103007 0.0004 0.002 0.000 0.000 0819506730 05537 04554 037500318 02584 0254501784 0148501340 01037088 0872500811 0.051400433 0350030000281 00115 0.7798 1695 1477603791 029630233001842 0148001160 4000 4.035008004710580304 0.0045 0.09 2016040125900105 DICUS 06717 0452903966 02083 0.14200292 008 0.0480 0.0318 402 40154 00107 oors or 0.0005 0.00192001300010000000001
Number d Periods 1 2 3 4 5 6 7 8 2 10 T 3 13 14 15 15 17 15 12 20 14 1% APPENDIX 2: PRESENT VALUE OF A REGULAR ANNUITY OF R1 PER PERIOD FOR N PERIODS 8 13704 1.9415 1.3125 18861 1854 18034 02201 09804 0STD 815 0534 03434 0.5346 07:59 09174 03091 02000090850 08772 08960862108547 18475 084030833 2% 3% 5.7955 58014 54172 521 15623 29410 2883925527751 27232 26730 26243 25771 25313 248 24437 24018 23512 23216 22832 2249 22 21743 2130 21065 323 3120 31024 3833 2345 29137 2850 272 27432 25801 28398 16:3283 * 24713882585302 81109 77217 7:3801 11.251 10.5753 9540 3 3.8077 37171 16299 35480 14851 33812 47135 40 328347 50 391961 60 442950 147179 13.5777 125611 11631037610059 42124 156785 43005 65152 1.7833 55713 57466 12.8420 11:39 11.1184 10377 37122 3.1079 34.7909 180458 18.3514 14.8775 13500 124622 114 10.5940 33121 TSAT 75381 17% 5.380 52064 5033043534 47122 4563844225 428 41804 40385 124 38115 370573046 135235 17:4131 156221 142239 12.734 113 17908 3250 3.5048 35172 34331 3322 32743 110 11272 8514 19% 20% 44850 43553 42305 41114 375 38887 3.7845 38847 12 147 34008 3335 | 1545 1.578 67101 64177 1448 58 502 542 52181 50188 48332484441 43389 4.1995 12.1062 11:21 10:531250 835 83442 7786273667 6281965282 6.3025 60021 57245 54675 5220 50081 482 48106 7:1807 48137 5424 6.154453176 58855420 5.1971 484 47932 30578 19862 5.750 55370 5382 5.1317 434447715 46065 44506433841633 410 83677 73008 74889 7.103467430 6423561218 5844 55801 53623 51183 4305 47147 452 480521-4351 62065 5.3377 588 54527 52337 50285 43354 4550 4.485 4.3271 142919 131681121657 11241 10477 27532 9016 85435 80216 75488 7.1196 6.7291 63729 60472 57467 5446 52223 438747748 93719 87958 8.2014 77016 12437 639 6464 1280 5818 533 52732 32544 3372 83501 83840 1830 73658 6.3380 65504 6.182 5.8775 5845 3312 4.4302 2572821422 18259 157819 138007 122305 109817 39148 90417 83045 78752 71327 6.685 624635880155541 253077 223965 19:50041720 153725 13.7548124090 112578 1027373-4359 8882552TAST 70027 6588061772 5854 5518 523474389 48122 43435 8.5135 136 144 7245 68231 62583 552885627833527 5.1000 4.500 38225 30770 8421778431 73300 68729 64641 601 57862 548 51981 43476 27 3555 231148 1729 17:151 15:0463 133317 11.346 10.7574 27731 821 834387344 7:1250 6.6418 6213558713 55452525243066 11.0480 3372 2073834078873 71401 681 62402 5881953 520 4399