Tangshan mining company, with a cost of capital of 10 percent, is considering investing in project a, with an initial investment of $1,000,000. project a is expected to provide equal cash inflows over its 15 year useful life. based on this information, the breakeven cash inflow for the project is $

the breakeven cash inflow for the project is $131474

Explanation:

given data

cost of capital = 10 percent

initial investment = $1,000,000

useful life = 15 year

to find out

the breakeven cash inflow for the project

solution

first we consider here annual cash inflows that is =  x

now break even point is the one at which the net present value of the project  =  0

so we can say that here  

Present value of cash inflows - Present value of cash outflows = 0   .................1

here we know Present value of cash inflows = x  × PVAF ( 10%,15 years)

Present value of cash inflows = x  ×  7.6060

put value in equation 1 we get

x  ×  7.6060 - $1,000,000  = 0

solve and we get x

x =

x = $131474

so the breakeven cash inflow for the project is $131474

i would go with get a bachelor’s degree

hope i

-lavira : )

you have to put the parentheses like this:

in fact, you have to perform the operation inside parentheses first, and then proceed in order: