. Consider the following two mutually exclusive projects: Project A Project B -$15,000 -$25,000 $5,000 $12,000 $8,000 n 10 1 12 3 PW (15%) ? $9,600 The firm's MARR is known to be 15%. Compute the PW (15%) for Project A. $0 $X $X 0. In question 9, compute the unknown cash flow X in years 2 and 3 for Project B. 1. In question 9, which project would you select?
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Present worth is the value right now of some amount of money in the future. For instance e, if you are promised $110 in 1 year, the present worth is the current value of that $110 today.
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- Q2) The two projects as part of oil industrial their cash flows in tables belwo: project B: r=8% cash flow (CF) project A:r=8% year cash flow (CF) -398 -242 1 120 105 2 175 105 280 115 Required: a) Find NPV for both project on base of r = 8%? b) Find the required IRR for both project and evaluate them based on this proceuder? Let the required IRR on range (10-20)%? c) Evaluate the mentioned project by using Pl during r=8%? %3DPlease help asap. Please show all work Projects A, B, and C are mutually exclusive. Projects D and E are mutually exclusive and both are dependent on the acceptance of A. The cash flow diagrams for all the projects are given below. Use NPV technique to determine which project combination should be chosen if the MARR equals 10% and investment capital is unlimited. 1 3. A: -50 20 20 20 20 -30 13 13 13 13 C: -14 4.25 4.25 4.25 4.25 1 4 D: -15 5 -10 6. O AE O A O B O AD O Do nothingMalholtra Inc. is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note that a project's projected MIRR can be less than the WACC (and even negative), in which case it will be rejected. WACC: Year Cash flows a. 5.24% b. 4.88% C. 8.64% d. 11.26% e. 9.82% 10.00% 0 -$1,025 1 $280 2 $300 3 $320 4 $340
- A proposed project will require the immediate investment of $50,000 and is estimated to have year-end revenues and costs as follows: Year Revenue Costs 1 2 3 4 5 $ 75,000 90,000 100,000 95,000 60,000 $ 60,000 77,500 75,000 80,000 47,500 An additional investment of $20,000 will be required at the end of the second year. The project would terminate at the end of the 5th year, and the assets are estimated to have a salvage value of $25,000 at the time. Solve for the IRR of the project by PW using 15% and 16% rates. A. 15.68% B. 15.28% C. 15.88% D. 15.48%Which of the following are possible values of i* for the project shown? Net Cash Flow for In Project B -38000 32000 32000 -22000 O 13.45% O27.31% D 31.92% O 41.69% 3.Moving another question will save this response. Question 3 A project with the following costs are under consideration to determine its profitability. Using the IRR comparison, and an annual MARR of 10% compounded semiannually, determine if the project should be executed First cost Semiannual operating cost $45,000 $10,000 Semiannual income $20,000 Salvage value Life in years Oa. IRR = 17% semiannual $20,000 4 years O b. IRR = 18.7% semiannual O IRR = 16.9% semiannual Od. IRR = 15 3% semiannual Moving to another question will save this response. Question 3 a 25 points Save Question 3 of 4
- Jum owns shares of Abco, Inc. preferred stock which he says provides him with a constant 6.58 percent rate of return. The stock is currently priced at $45.60 a share. What is the amount of the dividend per share? OA S3.00 OB $3.15 OC S3 50 OD $354 OE S362A man is considering putting up his own enterprise, where an investment of 800,000 will be required and will take 15 years to recoup. He estimates his annual sales at 800,000 along with the following operating costs. Materials =160,000/ yearLabor = 280,000/ yearOverhead = (40,000 + 10% of sales)/ yearSelling Expense = 60,000/ yearThe man will give up his regular job paying 216,000 Php per year and devote all his time to the operation of his business, this will result in decreasing his labor cost by 40,000 per year, material cost by 28,000 per year and overhead cost by 32,000 per year. If the man expects to earn at least 20% of his capital, should he invest? Solve using a) Rate of return method b) annual worth method c)present worth method d)equivalent uniform annual cost methodBetter Health, Inc. is evaluating two investment projects, each of which requires an up-front expenditure of $1 million. The projects are expected to produce the following net cash inflows: Year OHN ♡ 0 3 Project A -$1,000 $525 $400 $300 Hội thao tác này CN M Project B -$1,000 $400 $410 $415 Question: What is project A's IRR? (Just number, no other signs such as "$" or "%," round to two digits after decimal point) Question: What is project B's NPV if the cost of capital is 10 percent? (Just number, no other signs such as "$" or "%," round to an integer, no decimal point). Question: Which one would you buy? (write either "A" or "B")
- If one account receives a benefit in the form of cash, goods or services etc, there must be equal loss of benefit by another account. This refers to? a. bookkeeping b. single entry system c. accounting d. double entry system A corporate jet costs $1,350,000 and will incur $200,000 per year in maintenance costs. The jet can be sold for $650,000 after 5 years. What is the capital recovery? MARR = 15% a. $506,310 b. $306,310 c. $270,000 d. $650,000! Required information A process for producing the mosquito repellant Deet has an initial investment of $250,000 with annual costs of $42,000. Income is expected to be $90,000 per year. What is the payback period at /= 0% per year? At /= 12% per year? (Note: Round your answers to the nearest integer.) The payback period at /= 0% is determined to be years. The payback period at /= 12% is determined to be years.Given the following cash flows for project X and project Y, Year Project X Project Y 0 -55000 -100000 1 20000 15000 2 13500 17000 3 11000 19000 4 10000 25000 5 9000 30000 6 7500 35000 Calculate the NPV, IRR, MIRR and traditional payback period for each project, assuming a required rate of return of 7 percent If the projects are independent, which project(s) should be selected? If they are mutually exclusive, which project should be selected?