CHECK THESE SAMPLES OF The Initial Investment
The concept of compound interest unlike simple interest which only takes into consideration the interest return of the initial principal investment is determined by taking into consideration not only total interest on the principal, but it also includes any interest gained on The Initial Investment.... By utilizing the cash flows time line a person can determine the potential future value of an investment today and how the process of compounding interest on The Initial Investment affects the total value of The Initial Investment and its aggregate return on the simple interest....
5 Pages
(1250 words)
Research Paper
The Initial Investment per lift is $3,300,000.... To find the tax savings, The Initial Investment ($3,300,000) is multiplied by the tax rate to get $1,320,000.... Compared to the $3,300,000, The Initial Investment we get a resulting figure of $930,636.... It measures the total amount under which an investment is expected to raise based on the present value of its potential cash flows in comparison with the initial cost put into the project....
1 Pages
(250 words)
Research Paper
nbsp;In order to maximize production in relation to the constraints Terms in Strategic Planning and Capital Budgeting Net present value Net present value or NPV is defined as present value of net cash inflows generated by a project including salvage value, if any, less The Initial Investment on the project.... Internal Rate of ReturnInternal rate of return is the discount rate used that equates the present value of future investments with The Initial Investment....
2 Pages
(500 words)
Essay
The Net Present Values of the project has been calculated by taking into account The Initial Investment and the cash flow streams at the end of every year and it comes to $ -28566432.... The company has to incur an initial investment of $55000000.... BlueScape Company intends to spend some amount of money for the implementation of a new technology that will reduce their expenses and increase the level of profit at the same selling price per unit....
4 Pages
(1000 words)
Essay
The ratio I will be The Initial Investment divided by 1.... Therefore, this method takes to correct this by discounting the cash inflows up to The Initial Investment time.... Also, it is a good tool for firms that are faced with imminent liquidation as it helps in the ranking of projects that would return The Initial Investment within a short period (Costa, 2010).... That is; a high value of I imply a high initial investment cost as compared to the projected first period cash flow....
2 Pages
(500 words)
Essay
The Initial Investment was calculated by adding the purchase price and the investment made to increase the working capital of the business operations.... The payback period was used to identify the number of years in which the project was assumed to pay off The Initial Investment.... The total initial investment was 425,000 (including the purchase price i.... The total initial investment was... These calculations are based on estimated values used to analyze the strength of the portfolio or investment and… The most commonly used financial process is Capital Budgeting, it is a process in which the investors decide that whether the investment is fruitful or not....
5 Pages
(1250 words)
Essay
The average of after-tax accounting profits are obtained, as well as the average investment which is half of The Initial Investment (Gitman & Madura, 2000).... The depreciation was determined on the P10,000 initial investment using the straight-line method over the life of the project, and the tax rate is 45% as given in the case.... The criterion for determining the attractiveness of investments on the basis of the payback period is the shortness of the period during which the investment is “paid back” by the operating cash flows....
12 Pages
(3000 words)
Assignment
The payback period is the number of years needed to recover The Initial Investment (Groppelli & Nikbakht, 2006:157; Needles, Powers & Crosson, 2008:1259).... Cash benefits are merely added up until The Initial Investment is recovered.... For the final year of recovery, for calculation purposes, the cash inflow is assumed to be evenly distributed throughout the year, such that the remaining unrecovered portion of The Initial Investment may be computed pro-rata to determine the fractional portion of the year....
7 Pages
(1750 words)
Case Study