9. Margaret has a project with a $28 000 first cost that returns $5000 per year over its 10-year life. It has a salvage value of $3000 at the end of 10 years. If the MARR is 15 percent, what is the annual worth of this preiest?
Q: Nabil is considering buying a house while he is at university. The house costs $200 000 today.…
A: Given : Initial cost=$200,000 Time=5 years or 12*5=60 months MARR compounded monthly=6% or…
Q: QUESTION 7 for th below two machines and based on cC analysis which machine we should select?…
A: A capitalized cost is a cost incurred as a result of the purchase of a fixed asset that is expected…
Q: Compare the following alternatives using a method of your choice. Rate 3.5% per year compounded…
A: For Alternative A:- Initial cost= $2,500,000 Maintenance cost= $75,000 Benefits= $450,000 Time= 12…
Q: 7. Margaret has a project with a $28 000 first cost that returns $5000 per year over its 10-year…
A: PW = first cost + annual income x P/A(i%, N) + salvage value x P/F(i%, N)
Q: What is the price of a 3 -year, 8.1% coupon rate, $1,000 face value bond that pays interest…
A: Yield to maturity (YTM) is the total return anticipated on a bond if the bond is held until it…
Q: Time left 0:14 A company is considering two machines. Machine X has a first cost of $30,000, AOC of…
A: In the annual worth analysis, we find equivalent annual values of all the cash flows.
Q: Bailey, Inc., is considering buying a new gang punch that would allow it to produce circuit boards…
A: a. The future worth of investment can be calculated as follows: Thus, the future worth of…
Q: Diana usually uses a three-year payback period to determine if a project is acceptable. A recent…
A: Diana was utilizing interior pace of return as a loan cost that is making the present worth to be…
Q: A project has the following cash flows. Determine the exact ROR for this project. Item Cash…
A: Given, A project has the following data:First Cost : $250,000Annual Revenue : $16,000Life : 20…
Q: Question 7 for th below two machines and based on CC analysis which machine we should select?…
A: A minimum acceptable rate of return (MARR) is the minimum profit expected by an investor from an…
Q: 3) Consider the cash flows for the two alternatives assuming Interest rate 10% A в $2500.00 5000.00…
A: here we calculate the present value of the both project and compare and conclude the best project…
Q: Problem 3: A certain manufacturing plant is being sold and was submitted for bidding. Two _bids were…
A: According the question, A certain manufacturing plant is being sold and was submitted for bidding.…
Q: Compute for the Annual Worth of MEA1 and explain. Compute using the Annual Worth formula and WITHOUT…
A: r= 12%
Q: "Kim has $20301 to invest for 7 years. She has the following options: [AJterm deposit at 3.8%…
A: Given: Amount invested=$20301 Option A: 3.8% compounded annually Option B: 3.78% compounded quartely…
Q: A B C $9,000 $12,000 $1,800 Initial cost $15,000 $8,000 $5,000 2 years Annual benefit Salvage value…
A: The concept of present value states that an amount of money today is worth more than the same amount…
Q: Doak Corp. is evaluating a project with the following cash flows: Year Cash Flow -$16,000 7,100…
A: Discounting approach
Q: Data for four mutually exclusive alternatives are given in the table below. Assume a life of 7 years…
A: Benefit-to-cost (B/C) ratio is a method for evaluating how much the benefits of a specific venture…
Q: please solve with formulas like (F/P, 5% , n) not with the excell. A.3. A sanitary sewer can be…
A: Introduction: The minimum acceptable rate of return, also known as the hurdle rate, is the lowest…
Q: Here, for an alternative with an initial cost of $350 and an annual benefit of $47.50 that increases…
A: Here we calculate the Future worth and the standard benefit cost ratio by using the given…
Q: If the cost of a new production line is $40,000 and the expected free cash flows resulting from this…
A: particular Amount Cost -40,000 Inflow in Year 1 12000 Inflow in Year 2 12000 Inflow in Year…
Q: A company is considering two machines. Machine X has a first cost of $30,000, AOC of $18,000, and 5…
A: When comparing options, the AW method is commonly used. All earnings and expenses are converted into…
Q: G.3. A proposed geothermal energy project has an initial cost of $1,000K. In addition it will re-…
A: One of the approaches for determining the value of a project is to use the yearly worth method.
Q: Nabil is considering buying a house while he is at university. The house costs $200 000 today.…
A: Given : Initial cost=$200,000 Time=5 years or 12*5=60 months MARR compounded monthly=6% or…
Q: Sali would like to send her parents on a cruise for their 25th wedding anniversary. She has priced…
A: Given, Future amount, F= $15, 000 interest rate, i= 10% time period, n= 5 years
Q: 10. Nabil is considering buying a house while he is at university. The house costs S$200 000 today.…
A: Present worth is the present value of future money at a specific rate of return.
Q: Q.30) A $100,000 investment is make over a 10-years period. A return of $23,000 occurs at the end of…
A: Equivalent present worth - it represent the amount today is worth more than that exact amount in…
Q: What is the best alternative using incremental Analysis? Use MARR = 15% A B C Capital Investment $…
A: Incremental Analysis Approach Assuming MARR=15% Formula= (Annual benefit-Cost)*PVAF+Salvage…
Q: A machine would cost $90,000, and would generate revenues of $19,000 per year. However, O&M costs…
A: Given Cost of machine = $90,000 Revenue = $19,000 per year O&M cost = $6000 per year MARR=10%…
Q: Need Asap Illustrate the cashflow diagram and compute for the payback period for a project with the…
A: Given, First Cost = $20,000 Annual Benefits = $8,000 Annual Maintenance = $2,000 in year 1 and then…
Q: Margaret has a project with a $28 000 first cost that returns $5000 per year over its 10-year life.…
A: First cost =$28 000 $5000 per year over its 10-year life. salvage value of $3000 at the end of 10…
Q: 2. You are presented with three investment possibilities; however, you only have enough money to…
A: Given Minimum Acceptable Rate of return = 5 % As the projects are mutually exclusive, we will…
Q: Match the measures of worth in the first column with an appropriate definition from the second…
A: 1. Annual worth: Convert all cash flows to an equivalent uniform series over the planning horizon 2.…
Q: A project requires an initial investment of 47,000 dollars. The instream cashflow is 800 dollars per…
A: Note - Payback period ignores the time value of money but it is being considered when when…
Q: A pump is needed for 10 years at a remote location. The pump can be driven by an electric motor if a…
A: As the life of the Gasoline is only 5 years it has to be repeated once. The PW of Gasoline =…
Q: A company is considering purchasing either machine A or B, given that MARR is 10%, and the company…
A: Economic rate of return is a measure to assess profitability of an investment by comparing present…
Q: Question 4 Determine which option, if any, should be chosen based on net present worth using a 8%…
A: Calculation: a. Net present value of Alternative A = -First cost + Present value of annual…
Q: An electric cooperative is considering the use of a conicrete electric pole in the expansion of its…
A: Given, Creosoted wooden poles Concrete electric pole First Cost 12,000 18,000 Salvage Value…
Q: You are the boss of a consulting firm. One of your clients has brought to you a new project. The…
A: According to the question given, You own a consulting firm. One client brings in a new project. In…
Q: You are faced with a decision on an investment proposal. Specifically, the estimated additional…
A: The gift price technique associate degree analysis of study|of research} is an equivalence technique…
Q: Answer the problems on the basis of the above graph and the most likely estimates given as follows:…
A: Total decrease in net receipts = $1500 * 5% = $75 Net Profit = $5000 - $1425 ( 3.605) = $137.125…
Q: The present worth of an alternative is zero. What do we know about the value of the future worth?…
A: Annual worth refers to the equivalent annual value of a cash flow. In some instances, cash flows…
Q: 7.A man planned of building a house. The cost of construction is P 500,000, while annual maintenance…
A: Present worth is the idea that expresses a measure of cash today is worth more than that equivalent…
Q: With interest at 10%, what is the benefit-cost ratio for this government project? Initial Cost…
A: Here we calculate the Benefit cost ratio by using the given data , so the calculation of the…
Q: Problem 3: A certain manufacturing plant is being sold and was submitted for bidding. Two bids were…
A: In economics, present value refers to the current value of a future stream of cash flow. Future…
Q: You bought the latest IPhone 13 for your online selling business for Php 83,000.00. With this, your…
A: Given information Initial purchase cost=php83000.00 Annual income=Php 1000.00 Salvage value=Php…
Q: Margaret has a project with a $28 000 first cost that returns $5000 per year over its 10-year life.…
A: Present worth = -cost+ return(p/a @ i,n)+salvage value(p/f ,@ i, n).
Q: QZY, Inc. is evaluating new widget machines offered by three companies. The chosen machine will be…
A: A B C First cost $15,000 $25,000 $20,000 Maintenance and operating 1,600 400 900 Annual…
Q: 1) A company manufactures electrical metering devices that monitor power quality. The company's…
A: Cash flow refer to the inflow and outflow of the money that is operated in by the company. It is the…
can you solve it with formulas?
please make your text readable.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- You are the boss of a consulting firm. One of your clients has brought to you a new project. The client s asking for an initial investment of $35,000. The project will return $5,000 for the next 4 years. If the company has a MARR set at 12%, what method would you use to evaluate this project? O Present Worth Method O Annual Worth Method O Future Worth Method O Internal Return Rate O External Return Rate question 2 you are a consultant at Brinkley & co .you are responsible for evaluating projects introduced by surrounding engineering firms. the current project you are evaluating requires an initial investment of $35,000 and that returns $5000 for the next 1O years. if the MARR is 12% what is this a good investment?You are the boss of a consulting firm. One of your clients has brought to you a new project. The client s asking for an initial investment of $35,000. The project will return $5,000 for the next 4 years. If the company has a MARR set at 12%, what method would you use to evaluate this project? O Present Worth Method O Annual Worth Method O Future Worth Method O Internal Return Rate O External Return RateD Question 1 Consider a project that has an initial investment of $100,000 and that returns $36,000 per year for the next 5 years. If the MARR is 12%, is this a good investment? Use interest factor to evaluate the project based on PW. Since PW - $4,671.40 is positive, this is a good investment. Since PW-$29,744.80 is positive, this is a good investment. A revenue of $36,000 per year for five years is not acceptable. This is not a good investment. O Since PW-$56,889 indicates a loss, this investment is not good.
- Margaret has a project with a $28 000 first cost that returns $5000 per year over its 10-year life. It has a salvage value of $3000 at the end of 10 years. If the MARR is 5 percent, what is the payback period of this project? Ctrl) -Retainer 0 1 Expenses 2 Revenue N Years How much can you afford to spend on the first year expenses on a project with the above cash flow?, given; Your MARR is 10.00%, the client has given you a retainer of $5,700, annual revenues are expected to be $2,750, the external rate of return required for this project is 19.5% and the entire project will last 8 years. (Round your answer to the nearest penny)Question 4 A local company is considering in investing in new, more productive equipment Data concerning the three best aternatives are show below. The useful life of the equipment is 20 years and MARR =9K What is the incremental return on the first incremental pair (ahen andered by increasing investment) RRI Ars What is the incremental IRR on the second pair? Ars Which alternative would you select? Ans. X B C Initial S66.000.00 $55,000.00 $23.500.00 $17,32000 investment $7.830.00 Annual net $6.093.00 $3.177.00 $165300 income Salvage value $4.500.00 $3.23200 $1.73a0 1237% S8.230.00 10.40% 7.465 9.35% IRR
- In comparing the machines on a present worth basis, the present worth of machine Q is closest to:a. $-68,445b. $-97,840c. $-125,015d. $-223,120Project 1 involves an outlay of $2.5m and gets an annual net income of $1m for 5 years. Project 2 involves an outlay of $10m but gets no income until year 5. year project 1 project 2 0 -2.5 -10 1 1 0 2 1 0 3 1 0 4 1 0 5 1 15 Use the payback method to decide which is the most attractive project. __________ What is the accounting rate of return for project 1? Write your answer as a percent using the percent symbol. ________ What is the accounting rate of return for project 2? Write your answer as a percent using the percent symbol. _________ Decide which is the most attractive project using the accounting rate of return method. ________________Bramble Corp. is considering purchasing one of two new diagnostic machines. Either machine would make it possible for the company to bid on jobs that it currently isn't equipped to do. Estimates regarding each machine are provided below. Original cost Estimated life Salvage value Estimated annual cash inflows Estimated annual cash outflows Click here to view PV tables. Machine A $243,000 8 years -0- $80,000 $35,000 Machine B $317,000 8 years -0- $95,000 $40,000 Calculate the net present value and profitability index of each machine. Assume a 9% discount rate. (Round net present value to the
- kuzukuzu12121@outlook.com just sent here I NEED EXCEL FİLE. Determine the NPW, AW, FW and IRR of the following engineering project. Initial Cost ($400,000) The Study Period 15 years Salvage (Market) Value of the project 15% of the initial cost Operating Costs in the first year($9,000) Cost Increase 3% per year Benefits in the first year $40,000 Benefit Increase 9% per year MARR 8% per year Is the Project acceptable? WHY?ECONOMICS (UPVOTE WILL BE GIVEN. CHOOSE THE CORRECT ANSWER. NO LONG EXPLANATION NEEDED. BOX THE FINAL ANSWER.) You are solving using the future worth method. If one of its cashflows is the machine’s market value after the end of 10 years amounting to Php 25,000, how do we include this cashflow in the working equation? A. + Php 25,000 (P/F, i%, N) B. - Php 25,000 (P/F, i%, N) C. + Php 25,000 (A/F, i%, N) D. + Php25,000Question 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 $45,000 Semiannual operating cost $10,000 Semiannual income $20,000 Salvage value $20,000 Life in years 4 years Oa. IRR = 17% semiannual Ob. IRR= 18.7% semiannual O IRR = 16.9% semiannual Od. IRR 15.3% semiannual