A project cost $160 dollars today and has expected cash flows of $100 per year forever, beginning one year from today. What is the project's payback and discounted payback periods if the discount rate is 22%?
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- 3. Mr. Decision is torn between two independent projects A and B. The data below each project are given and the MEAS under each project are also given. Take MARR = 12% for all projects. A. Perform the proper evaluation of all the projects available. B. Recommend the project(s) that can be selected from the list so you can help Mr. Decision to decide. C. Explain the method(s) of evaluation you used including the assumption(s) made. PARAMETERS MEA 1 МЕA 2 MEA 3 МEA 4 Investment Cost 1,500,000 1,000,000 2,000,000 2,500,000 Annual Service Benefit 200,000 200,000 150,000 115,000 Annual Insurance Benefit 300,000 150,000 200,000 Annual Maintenance and 120,000 100,000 500,000 200,000 Operational Costs Annual Revenues 90,000 100,000 110,000 90,000 Market Value 100,000 90,000 200,000 Useful Life, years 10 8 5 4 МEA 5 МEA 6 200,000 10,000 16,000 PARAMETERS MEA 7 МEA 8 Investment Cost Annual Service Benefit 100,000 10,000 30,000 300,000 15,000 500,000 11,000 10,000 Annual Insurance Benefit Annual…1. The Present Worth Method A project your firm is considering for implementation has these estimated costs and revenues: an investment cost of $50,000; maintenance costs that start at $5,000 at the end of year (EOY) 1 and increase by $1,000 for each of the next 4 years, and then remain constant for the following 5 years; savings of $20,000 per year (EOY 1–10); and finally a resale value of $35,000 at the EOY 10. If the project has a 10-year life and the firm’s MARR is 10% per year, what is the present worth of the project? Is it a sound investment opportunity?dont use excel i will 5 upvotes. Assuming a firm’s weighted average cost of capital is 12%, what is the discounted payback period of the following project? Year Net Cash Flow 0 -$375,000 1 $200,000 2 $200,000 3 $350,000 Group of answer choices a. 2.40 years b. 2.15 years c. 2.21 years d. 1.88 years
- Mr. Decision is torn between two independent projects A and B. The data below each project are given and the MEAs under each project are also given. Take MARR = 12% for all projects. A. Perform the proper evaluation of all the projects available.B. Recommend the project(s) that can be selected from the list so you can help Mr. Decision to decide.C. Explain the method(s) of evaluation you used including the assumption(s) made.What does the term engineering economic decision refer to in all investment decisions relating to an engineering project?Complete Solution needed. A plant produces 300 units of equipment a month of Php 3,600 each. A unit sells for Php 4,800. The company has 10,000 shares of stock at Php 200 par value whose annual dividend is 20%. The fixed cost of production is Php 120,000 a month. a) What is the break-even point? b) What is the unhealthy point? c) What is the profit if production is 60% of capacity? (Specify if it is a gain or loss)
- Q1. 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 3215. You want to open a new business but for the first 3 years you wont make any income as it takes time for the paperwork and approvals to process. After your business is up and running, you will make $75,000 per year forever. What is the capitalized cost of the income at 8% per year? What does the capitalized cost represent in layman terms?Quèstion 12 A company has an export transaction with the payment term D/P T/R at 15 days after sight. Assuming the documents mailing period is 7 days, and the date of collection is July 1st (without considering the reasonable working hours of the bank). The date of payment is O July 1st July 8th O July 15th O July 22nd
- A. Project A has a net present value of zero when the discount factor of 20% is used. How much return is the project earning?B. If project A above is earning K150, 000 per year in perpetuity, what is the initial investment cost of the project? C. Company A expects to generate K150, 000 cash flows per year in perpetuity and the risk adjusted discount rate is 20%. What should be the certainty equivalent cash flows when the risk free rate is 10%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.An analysis tool applicable when the breakeven analysis does not fit the project situation. a. Multiplot O b. Riskplot Ос. Spiderplot O d. Webplot