The proposed projects have the potential uniform annual benefits and associated probability at occurrence shown below. Which project is more desirable based on these Probability data? EUAB $1,000 2,000 2.000 Project B Probability EUAB Probability 0.10 $1,500 0.20 0.30 2,500 0.40 Project A 0.10 2.500 0.30
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- A project with uncertainty is under consideration for implementation. The values are shown in the table below. Calculate the Expected Value of the Net Present Worth of this project. n Proba FC Annual Benefit ProbaB 7% ($100,500) ($100,500) ($100,500) ($100,500) ($100,500) ($100,500) $50,000 $22,000 $37,000 $20,000 $5,000 $95,000 8 23% 43% 55% 35% 7% 8. 35% 7% 8 21% 7% 7% 7% 27% 65% 10 75% 10 85% 10 10% 5%A project has a life of 10 years and no salvage value. Your firm uses an MARR of 8% to evaluate projects. The project has uncertain costs and revenue as shown in the table below: Initial Cost Probability Net Revenue Probability $120,000 0.25 $33,000 0.15 $240,000 0.60 $44,000 0.55 $300,000 0.15 $52,000 0.30 Determine the EUAW for the combination of inital cost and revenue with the highest probability of occurence. Express your answer in $ to the nearest $100. Answer is 8233.0 Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Your firm uses a continuous review system and operates52 weeks per year. One of the SKUs has the followingcharacteristics.Demand 1D2 = 20,000 units>yearOrdering cost 1S2 = $40>orderHolding cost 1H2 = $2>unit>yearLead time 1L2 = 2 weeksCycle@service level = 95 percentDemand is normally distributed, with a standard deviation ofweekly demand of 100 units.Current on-hand inventory is 1,040 units, with no scheduledreceipts and no backorders.a. Calculate the item’s EOQ. What is the average time, inweeks, between orders?b. Find the safety stock and reorder point that provide a95 percent cycle-service level c. For these policies, what are the annual costs of (i) holdingthe cycle inventory and (ii) placing orders?d. A withdrawal of 15 units just occurred. Is it time to reor-der? If so, how much should be ordered?
- I want you to provide me the Cash Flow diagram of the problem. Only cash flow diagram, the solution is already there. Thanks in advance! The annual estimated cash flow is $140,000. The salvage value will be 12% of the initial price after 5 years. The discount rate (r) is 18% Let us assume the initial price of the doughnut machine be X. PV of cash inflows=PV of cash outflows$140,000×PVAF4,18%+.12X×PVF5,18%=X$140,000×2.69006180465+.12X×0.43710921621=X$376,608.652651=X-0.05245310594$376,608.652651=0.94754689406XX=$397,456.479475 The maximum purchase price of the doughnut machine is $397,456.48.A company is planning to raise savings with associated probabilities shown in the table below. The useful life is 5 years with a probability of 0.6 and 3 years with probability of 0.4. Use a MARR of 10% 1. Determine the joint probability distribution for savings per year and useful life. 2. Determine the Expected Value of NPW i an initial Cost of $50,000 is required. Annual Benefit $15.000 Probability 0.25 $20,000 0.45 $25,000 0.3Curtis Party Rentals offers party equipment such as tents, tables, chairs, and so on for outdoor events. The rental fees average $940 per event. Curtis receives a 15 percent deposit two months before the event, 60 percent the month before, and the remainder on the day the equipment is delivered and set up. Planners at Curtis estimate the following number of events for the last half of the current year: July August September October November December Required: a. What are the expected revenues for Curtis Party Rentals for each month, July through December? Revenues are recorded in the month of the event. b. What are the expected cash receipts for each month, July through October? 330 350 400 310 270 300 Complete this question by entering your answers in the tabs below. Required A Required B What are the expected revenues for Curtis Party Rentals for each month, July through December? Revenues are recorded in the month of the event. July August September October November December…
- 2. Assume that we can estimate a project's cash flows as follows: n 0 1 2 3 4 5 Expected Flow E(An) Estimate of Standard Deviation on $0 $10 $15 $20 $25 $30 -$300 $120 $150 $150 $110 $100 In this case, each annual flow can be represented by a random variable with known mean and variance. Further assume complete independence among the cash flows. (a) Find the expected NPW and the variance of this project at i = 10%. (b) If all cash flows are normally distributed with the given means and variances, what is the probability that the NPW will exceed $200?The investment amount is 18.000.000 TL, the data related to a project are as follows and the risk-free discount rate is 10%. YEAR1 YEAR2 POSSIBILITY Cash Flows POSSIBILITY Cash Flows %15 3.000.000 %25 5.000.000 %70 7.000.000 %50 8.000.000 %15 8.000.000 %25 9.000.000 Calculate the expected Profitability Index of the project based on these data.File Preview 2. The cash flows from a contemplated project are assumed to have a Beta distribution with following estimated values: EOY 0 Pessimistic, Yp S-14,000 1 0 2 5,000 3 8,000 Most likely $-12,000 2,000 8,000 12,000 Optimistic, Yo $-10,000 4,000 11,000 16,000 (a) Calculate the means and standard deviations of the cash flow for each year. (b) Assume MARR-15%, find the the mean and standard deviation of the net present value. (Assume the cash flows are completely independent.)
- Alternative 3 is incorrect EUAC=( Equivalent Annaul COst of Initial Investment)+ (Expected Moderate annaual flood damage cost )+ (expected severe annaual flood cost )choose correct option plz. AsapBN10.1 When evaluating the Benefit of a Potential Project, is it okay to look at the Expected Value & ignore the Variance?