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Homework answers / question archive / Harvesting system Initial cost (RM) Productivity (RM/year) Maintenance cost (RM) Salvage value (RM) A 680000 164000 1200 every year + 3000 every 5 years 120000 B 650000 174000 1500 every year 50000 ? 600000 155000 1300 every year 80000 D 1000000 294000 1500 every year + 2000 every 5 years 100000 E 800000 196000 2000 every year 150000 F 500000 118000 1000 every year none
Harvesting system Initial cost (RM) Productivity (RM/year) Maintenance cost (RM) Salvage value (RM) A 680000 164000 1200 every year + 3000 every 5 years 120000 B 650000 174000 1500 every year 50000 ? 600000 155000 1300 every year 80000 D 1000000 294000 1500 every year + 2000 every 5 years 100000 E 800000 196000 2000 every year 150000 F 500000 118000 1000 every year none
PROJECT-A | |||||||||||
Particulars | Years | ||||||||||
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | ||
Productivity | 164000 | 164000 | 164000 | 164000 | 164000 | 164000 | 164000 | 164000 | 164000 | 164000 | |
Maintenance Cost | 1200 | 1200 | 1200 | 1200 | 1200 | 1200 | 1200 | 1200 | 1200 | 1200 | |
3000 | 3000 | ||||||||||
Depreciation | 56000 | 56000 | 56000 | 56000 | 56000 | 56000 | 56000 | 56000 | 56000 | 56000 | |
Salvage Value | 120000 | ||||||||||
Annual Cash flows | 106800 | 106800 | 106800 | 106800 | 103800 | 106800 | 106800 | 106800 | 106800 | 223800 | |
PV Factor @ 10% | 0.909091 | 0.826446 | 0.751315 | 0.683013 | 0.620921 | 0.564474 | 0.513158 | 0.466507 | 0.424098 | 0.385543 | |
Present Value | 97090.91 | 88264.46 | 80240.42 | 72945.84 | 64451.63 | 60285.82 | 54805.29 | 49822.99 | 45293.63 | 86284.59 | 699485.6 |
Initial Investment | 680000 | ||||||||||
NPV | 19485.57 | ||||||||||
PV Factor @ 20% | 0.833333 | 0.694444 | 0.578704 | 0.482253 | 0.401878 | 0.334898 | 0.279082 | 0.232568 | 0.193807 | 0.161506 | |
Present Value | 89000 | 74166.67 | 61805.56 | 51504.63 | 41714.89 | 35767.1 | 29805.92 | 24838.27 | 20698.56 | 36144.95 | 465446.5 |
Initial Investment | 680000 | ||||||||||
NPV | -214553 | ||||||||||
IRR | 10% + {(19485.57)/(19485.57+234038.6)} x (20-10) | ||||||||||
10.83% | |||||||||||
PROJECT-B | |||||||||||
Particulars | Years | ||||||||||
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | ||
Productivity | 174000 | 174000 | 174000 | 174000 | 174000 | 174000 | 174000 | 174000 | 174000 | 174000 | |
Maintenance Cost | 1500 | 1500 | 1500 | 1500 | 1500 | 1500 | 1500 | 1500 | 1500 | 1500 | |
Depreciation | 60000 | 60000 | 60000 | 60000 | 60000 | 60000 | 60000 | 60000 | 60000 | 60000 | |
Salvage Value | 50000 | ||||||||||
Annual Cash flows | 112500 | 112500 | 112500 | 112500 | 112500 | 112500 | 112500 | 112500 | 112500 | 162500 | |
PV Factor @ 10% | 0.909091 | 0.826446 | 0.751315 | 0.683013 | 0.620921 | 0.564474 | 0.513158 | 0.466507 | 0.424098 | 0.385543 | |
Present Value | 102272.7 | 92975.21 | 84522.92 | 76839.01 | 69853.65 | 63503.32 | 57730.29 | 52482.08 | 47710.98 | 62650.78 | 710541 |
Initial Investment | 650000 | ||||||||||
NPV | 60540.96 | ||||||||||
PV Factor @ 20% | 0.833333 | 0.694444 | 0.578704 | 0.482253 | 0.401878 | 0.334898 | 0.279082 | 0.232568 | 0.193807 | 0.161506 | |
Present Value | 93750 | 78125 | 65104.17 | 54253.47 | 45211.23 | 37676.02 | 31396.69 | 26163.9 | 21803.25 | 26244.66 | 479728.4 |
Initial Investment | 680000 | ||||||||||
NPV | -200272 | ||||||||||
IRR | 10% + {(60540.96)/(60540.96+200272)} x (20-10) | ||||||||||
12.32% | |||||||||||
PROJECT-C | |||||||||||
Particulars | Years | ||||||||||
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | ||
Productivity | 155000 | 155000 | 155000 | 155000 | 155000 | 155000 | 155000 | 155000 | 155000 | 155000 | |
Maintenance Cost | 1300 | 1300 | 1300 | 1300 | 1300 | 1300 | 1300 | 1300 | 1300 | 1300 | |
Depreciation | 52000 | 52000 | 52000 | 52000 | 52000 | 52000 | 52000 | 52000 | 52000 | 52000 | |
Salvage Value | 80000 | ||||||||||
Annual Cash flows | 101700 | 101700 | 101700 | 101700 | 101700 | 101700 | 101700 | 101700 | 101700 | 181700 | |
PV Factor @ 10% | 0.909091 | 0.826446 | 0.751315 | 0.683013 | 0.620921 | 0.564474 | 0.513158 | 0.466507 | 0.424098 | 0.385543 | |
Present Value | 92454.55 | 84049.59 | 76408.72 | 69462.47 | 63147.7 | 57407 | 52188.18 | 47443.8 | 43130.73 | 70053.22 | 655745.9 |
Initial Investment | 650000 | ||||||||||
NPV | 5745.938 | ||||||||||
PV Factor @ 20% | 0.833333 | 0.694444 | 0.578704 | 0.482253 | 0.401878 | 0.334898 | 0.279082 | 0.232568 | 0.193807 | 0.161506 | |
Present Value | 84750 | 70625 | 58854.17 | 49045.14 | 40870.95 | 34059.12 | 28382.6 | 23652.17 | 19710.14 | 29345.56 | 439294.9 |
Initial Investment | 680000 | ||||||||||
NPV | -240705 | ||||||||||
IRR | 10% + {(5745.94)/(5745.94+240705)} x (20-10) | ||||||||||
10.23% | |||||||||||
PROJECT-D | |||||||||||
Particulars | Years | ||||||||||
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | ||
Productivity | 294000 | 294000 | 294000 | 294000 | 294000 | 294000 | 294000 | 294000 | 294000 | 294000 | |
Maintenance Cost | 1500 | 1500 | 1500 | 1500 | 1500 | 1500 | 1500 | 1500 | 1500 | 1500 | |
2000 | 2000 | ||||||||||
Depreciation | 90000 | 90000 | 90000 | 90000 | 90000 | 90000 | 90000 | 90000 | 90000 | 90000 | |
Salvage Value | 100000 | ||||||||||
Annual Cash flows | 202500 | 202500 | 202500 | 202500 | 200500 | 202500 | 202500 | 202500 | 202500 | 300500 | |
PV Factor @ 10% | 0.909091 | 0.826446 | 0.751315 | 0.683013 | 0.620921 | 0.564474 | 0.513158 | 0.466507 | 0.424098 | 0.385543 | |
Present Value | 184090.9 | 167355.4 | 152141.2 | 138310.2 | 124494.7 | 114306 | 103914.5 | 94467.74 | 85879.77 | 115855.8 | 1280816 |
Initial Investment | 10,00,000 | ||||||||||
NPV | 280816.2 | ||||||||||
PV Factor @ 20% | 0.833333 | 0.694444 | 0.578704 | 0.482253 | 0.401878 | 0.334898 | 0.279082 | 0.232568 | 0.193807 | 0.161506 | |
Present Value | 168750 | 140625 | 117187.5 | 97656.25 | 80576.45 | 67816.84 | 56514.03 | 47095.03 | 39245.86 | 48532.43 | 863999.4 |
Initial Investment | 10,00,000 | ||||||||||
NPV | -136001 | ||||||||||
IRR | 10% + {(280816.2)/(280816.2+136001)} x (20-10) | ||||||||||
16.74% | |||||||||||
PROJECT-E | |||||||||||
Particulars | Years | ||||||||||
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | ||
Productivity | 196000 | 196000 | 196000 | 196000 | 196000 | 196000 | 196000 | 196000 | 196000 | 196000 | |
Maintenance Cost | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | |
Depreciation | 65000 | 65000 | 65000 | 65000 | 65000 | 65000 | 65000 | 65000 | 65000 | 65000 | |
Salvage Value | 150000 | ||||||||||
Annual Cash flows | 129000 | 129000 | 129000 | 129000 | 129000 | 129000 | 129000 | 129000 | 129000 | 279000 | |
PV Factor @ 10% | 0.909091 | 0.826446 | 0.751315 | 0.683013 | 0.620921 | 0.564474 | 0.513158 | 0.466507 | 0.424098 | 0.385543 | |
Present Value | 117272.7 | 106611.6 | 96919.61 | 88108.74 | 80098.85 | 72817.14 | 66197.4 | 60179.45 | 54708.59 | 107566.6 | 850480.7 |
Initial Investment | 800000 | ||||||||||
NPV | 50480.65 | ||||||||||
PV Factor @ 20% | 0.833333 | 0.694444 | 0.578704 | 0.482253 | 0.401878 | 0.334898 | 0.279082 | 0.232568 | 0.193807 | 0.161506 | |
Present Value | 107500 | 89583.33 | 74652.78 | 62210.65 | 51842.21 | 43201.84 | 36001.53 | 30001.28 | 25001.06 | 45060.06 | 565054.7 |
Initial Investment | 800000 | ||||||||||
NPV | -234945 | ||||||||||
IRR | 10% + {(50480.65)/(50480.65+234945)} x (20-10) | ||||||||||
11.77% | |||||||||||
PROJECT-F | |||||||||||
Particulars | Years | ||||||||||
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | ||
Productivity | 118000 | 118000 | 118000 | 118000 | 118000 | 118000 | 118000 | 118000 | 118000 | 118000 | |
Maintenance Cost | 1000 | 1000 | 1000 | 1000 | 1000 | 1000 | 1000 | 1000 | 1000 | 1000 | |
Depreciation | 50000 | 50000 | 50000 | 50000 | 50000 | 50000 | 50000 | 50000 | 50000 | 50000 | |
Salvage Value | 0 | ||||||||||
Annual Cash flows | 67000 | 67000 | 67000 | 67000 | 67000 | 67000 | 67000 | 67000 | 67000 | 67000 | |
PV Factor @ 10% | 0.909091 | 0.826446 | 0.751315 | 0.683013 | 0.620921 | 0.564474 | 0.513158 | 0.466507 | 0.424098 | 0.385543 | |
Present Value | 60909.09 | 55371.9 | 50338.09 | 45761.9 | 41601.73 | 37819.75 | 34381.59 | 31255.99 | 28414.54 | 25831.4 | 411686 |
Initial Investment | 500000 | ||||||||||
NPV | -88314 | ||||||||||
PV Factor @ 5% | 0.952381 | 0.907029 | 0.863838 | 0.822702 | 0.783526 | 0.746215 | 0.710681 | 0.676839 | 0.644609 | 0.613913 | |
Present Value | 63809.52 | 60770.98 | 57877.12 | 55121.07 | 52496.25 | 49996.43 | 47615.65 | 45348.24 | 43188.8 | 41132.19 | 517356.2 |
Initial Investment | 500000 | ||||||||||
NPV | 17356.24 | ||||||||||
IRR | 5% + {(17356.24)/(17356.24+88314)} x (10-5) | ||||||||||
6.64% |
Project | IRR |
A | 10.83% |
B | 12.32% |
C | 10.23% |
D | 16.74% |
E | 11.77% |
F |
6.64% |