NPVA $0 Interest Rate 5% 12% 18% NPV8 1. What is the IRR for project A and for project B? Which one has the higher IRR? 2. If an organization is uncertain about its future, which of these two projects would it be most likely to do? Explain why %24
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- Economics When the IRR of a project decreases, the natural tendency is that: Select one: a. AW will decrease b. MARR will decrease C.AW will increase d. MARR will increase. Give your reasons4. If the project's cost of capital is 12%, what is the NPV of the project? $ 209,845 I'm still trying to figure out this last part. The homework says this is wrong, but I cannot follow your work to see if there is just an error in the decimals. Please explain how you got this last part.flows given in the table below. What is the IRR of the project? (Use percent format and give two decimal places.) Year 0: -$12,000 Year 1:-$3,000 Year 2: $2,000 Year 3: $6,000 Year 4: $6,000 Year 5: $6,000 Year 6:-$2,000 Year 7: $6,000 Year 8: $6,000 Year 9: $6,000 Year 10: $6,000 Typed numeric answer will be automatically saved. 20.33
- During a a company history of cash flow: Y1, Income $6850: costs $19333, Y2 $6404; costs $14498 Y3 income $17620; costs $2126 with a hurdle rate of 0.15, what is the NPV at year 3? Please solve clearly ASAP.Compute the NPV statistic for Project Y if the appropriate cost of capital is 12 percent. Note: Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places. Project Y Time: 0 1 2 3 Cash flow: -$ 8,000 $ 3,630 $ 4,460 $ 1,800 $ 580 NPV (Click to select) ject be accepted or rejected? Accepted Rejected1- In year 12 Adam earns $1450 and saves $550. In year 21 Adam gets a $4550 raise so that he earns a total of $6000. Out of that $6000, he saves $650. What is Adam's MPC out of his $4550 raise?
- 13.12 You work for Bellevue Window Products. While performing an analysis for a new window prod- uct, you found a report from last year that pro- vided the following information regarding the manufacture of a similar product: annual produc- tion rate T 40,000 units; selling price = $70 per unit; fixed production cost = $240,000 per year; variable production cost = $1,700,000 per year; variable selling expenses = $96,000 per year. As a first-cut, you decide to use this information to estimate (a) the breakeven production rate per year, (b) the company's profit last year, and (c) the annual production rate that would generate a profit of $1,000,000 per year. What are your estimates?NPV Calculate the net present value (NPV) for the following 12-year projects. on the acceptability of each. Assume that the firm has a cost of capital of 7%. a. Initial investment is $1,000,000; cash inflows are $ 160,000 per Year b. Initial investment is $2,500,000; cash inflows are $320,000 per Year Using Excel to answer. Show all FormulasQ1. Calculate EOQ and plot a graph with the following information. Annual Usage= 1600 units Holding Cost $8 unit/yr Ordering Cost = $100 unit/yr > Price of per Unit= $50 Number of Units 1600 800 400 200 100 80 50 Number of Order 1 2 4 8 16 20 32
- 1. You purchased a building five years ago for $100,000. Its annual maintenance expense has been $5,000 per year. At the end of three years, you spent $9,000 on roof repairs. At the end of five years (now), you sell the building for $120,000. During the period of ownership, you rented the building for $10,000 per year paid at the beginning of each year. Use the AW method to evaluate this investment when your MARR is 12% per year.Horizon value question A project involved initial construction costs of $1.75 million. After 15 years, the useful life of that construction will be over and the facility will be demolished, involving sensitive environmental protections and cleanup. You estimate that 25% of the cost of the facility represents items that could be sold for scrap at 30% of their initial construction cost. You estimate the proper demolition cost of such a facility to be $0.9M. a. What is the NPV of the horizon value if the real discount rate is 0.035? b. If the expected annual rate of inflation is 0.02, what is the nominal horizon value in 15 years?B Class 3 - ECON1001C Intro x * MindTap - Cengage Learnin x * MindTap - Cengage Learnir x y! carleton brightspace - Yaho x B Unit 2.1 Slic A Not secure ng.cengage.com/static/nb/ui/evo/index.html?deploymentld=599297248878548653463891880&elSBN=978017 E Apps Favoris du domaine D Friv : ONLY THE VE... OZ Jorge Cruise's BBQ... BE Ref Centre - Course... A Disque 10 Agenda M Courriel CENGAGE MINDTAP Assignment 1 - Part 4 of 4 - Chapter 5 Questions Consider some determinants of the price elasticity of demand: • The availability of close substitutes • Whether the good is a necessity or a luxury • How broadly you define the market • The time horizon being considered A good without any close substitutes is likely to have relatively elastic ▼ demand, since consumers cannot easily switch to a substitute good if the price of the good rises.