Determine the NPW of project A for the common analysis period (as identified in question#1). Assume an annual interest rate of 16%(compounded annually).
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Just Answer NPW for Proj A
The present worth of a project or an investment refers to its current value in accordance with its value in the future on the basis of a certain rate of return. The net present worth refers to the excess present worth of benefits over the present worth of cost.
The common analysis period method of net present worth refers to the estimation of the net present worth for two or more projects or investments for the least common multiple of their lives.
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- Determine the IROR and profitability index at 12% per year for an industrial smart-grid system that has a first cost of $400,000, an AOC of $75,000 per year, estimated annual savings of $192,000, and a salvage value of 20% of its first cost after a 5-year useful life. a) The IROR value is ____%. b) The profitability index is ____.a) Finnish Furniture manufactures tables in facilities located in three cities–Reno, Denver, and Pitts- burgh. The tables are then shipped to three retail stores located in Phoenix, Cleveland, and Chi- cago. Management wishes to develop a distribu- tion schedule that will meet the demands at the lowest possible cost. The shipping cost per unit from each of the sources to each of the destina- tions is shown in the following table: TO FROM PHOENIX CLEVELAND CHICAGO RENO 10 16 19 DENVER 12 14 13 PITTSBURGH 18 12 12 The available supplies are 120 units from Reno, 200 units from Denver, and 160 units from Pitts- burgh. Phoenix has a demand of 140 units, Cleve- land has a demand of 160 units, and Chicago has a demand of 180 units. How many units should be shipped from each manufacturing facility to each of the retail stores if cost is to be minimized? What is the total cost? b) Finnish Furniture has experienced a decrease in the demand for tables in Chicago; the demand has fallen to 150…Fisher Publishing Inc. is doing a financial feasibility analysis for a new book. Editing and preproduction costs are estimated at $45,000. The printing costs are a flat $7000 for setup plus $8.00 per book. The author's royalty is 8% of the publisher's selling price to bookstores. Advertising and promotion costs are budgeted at $8000. a. If the price to bookstores is set at $35, how many books must be sold to break even? (Round the answer up to the nearest whole number.) b. The marketing department is forecasting sales of 4800 books at the $35 price. What will be the net income from the project at this volume of sales?
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- We have the following K-T conditions: 1-3 + 5z – 21 > 0 & x >0 & x(3+5z – 21) = 0 %3D 2-5x – 4A > 0 & z >0 & z(5x – 4X) = 0 3-10 – 4z – 2x > 0 & A> 0 120 & \(10 – 4z – 2x) = 0 - - Which of the following best represents the problem associated with those K-T conditions? max (.2) 3x + 5xz such that 10 4z + 2x O min(a,2) 3x+ 5xz such that 10 > 4z + 2x O min(2,2) 3x + 5xz such that 10 < 4z + 2xBreak-Even Point Hilton Enterprises selis a product for $119 per unit. The variable cost is $68 per unit, while faed costs are $436,968. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $124 per unit a. Break-even point in sales units units b. Break-even point if the selling price were increased to 124 per unit units 00Rho Merchandising supplies T-shirts to AK Mart. Currently, Rho orders T-shirts from varioussuppliers. One of the T-shirts is ordered in batches of 150 units. It has been estimated that an annualdemand for T-shirts is 25,000 pieces. Furthermore, carrying cost is estimated to be P10 per T-shirt peryear. For the other policy to be optimal, determine what the ordering cost would have to be.
- Alternative Annualized first cost. $/year Annual M&O cost. $/year Annual benefits, $/year Annual disbenefits, $/year Life, years Multiple Choice O O fund both X and Y fund neither fund Y fund X 60,000 90.000 45,000 35,000 110.000 150.000 20,000 45,000 Show Transcribed Text for the two independent projects shown determine which if any should be funded i=10% per year using B/C ratio method.I see some mistakes on solve equations for x2. Please review so is a grade-3 polinomic equation: 0,08/(x2)2 + 12x2 = 15.000 Confirm, ThanksEight projects are available for selection at Hum-Vee Motors. The listed PW values aredetermined at the corporate MARR of 10% per year and rounded to the nearest $1000. Projectlives vary from 5 to 15 years. (Please see figure attached) Project selection guidelines:1. No more than $400,000 in investment capital is available.2. No negative PW project may be selected.3. At least one project, but no more than three, must be selected.4. The following selection restrictions apply to specific projects: • Project 4 can be selected only if project 1 is selected.• Projects 1 and 2 are duplicative; don’t select both.• Projects 8 and 4 are also duplicative.• Project 7 requires that project 2 also be selected. (a) Identify the viable project bundles and select the best economically justified projects. What isthe investment assumption for any remaining capital funds? (b) If as much of the $400,000 as possible must be invested, use the same restrictions anddetermine the project(s) to select. Is this…