Solve it correctly please. I will rate accordingly Some particulars for a project are as follows.Initial Capital Cost in year 0 ($Mn)1000Follow-up 'one-off' cost in year 1($Mn)30010% of capitalAnnual Operating Cost ($Mn/yr)costAnnual Benefits ($Mn/yr)400Project Closure Cost, at end ofproject life ($Mn)Useful Life (years)Interest/Discount rate (percent)200207What is the Life Cycle Cost of the project - with year 10 as thebase year?(your answer must be rounded off to the nearest million dollars,i.e., no decimal places)

The overall cost of an asset across its life cycle, including original capital expenses, maintenance…

Some particulars for a project are as follows. Initial Capital Cost in year 0 ($Mn) Follow-up 'one-off cost in year 1 |($Mn) 1000 300 10% of capital Annual Operating Cost ($Mn/yr) cost Annual Benefits ($Mn/yr) Project Closure Cost, at end of project life ($Mn) Useful Life (years) Interest/Discount rate (percent) 400 200 20 7 What is the Life Cycle Cost of the project - with year 10 as the base year? (your answer must be rounded off to the nearest million dollars, i.e., no decimal places)

Some particulars for a project are as follows. Initial Capital Cost in year 0 ($Mn) Follow-up 'one-off cost in year 1 |($Mn) 1000 300 10% of capital Annual Operating Cost ($Mn/yr) cost Annual Benefits ($Mn/yr) Project Closure Cost, at end of project life ($Mn) Useful Life (years) Interest/Discount rate (percent) 400 200 20 7 What is the Life Cycle Cost of the project - with year 10 as the base year? (your answer must be rounded off to the nearest million dollars, i.e., no decimal places)

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter12: Capital Investment Analysis

Section: Chapter Questions

Problem 1BE: Average rate of return Determine the average rate of return for a project that is estimated to yield...

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You Answered Some particulars for a project are as follows. Initial Capital Cost in year 0 ($Mn) Follow-up 'one-off' cost in year 1 ($Mn) Annual Operating Cost ($Mn/yr) Annual Benefits ($Mn/yr) Correct Answers Project Closure Cost, at end of project life ($Mn) Useful Life (years) Interest/Discount rate (percent) 1000 300 10% of capital cost 400 2,391 (with margin: 5) 200 20 7 What is the Life Cycle Cost of the project - expressed in present value term? (your answer must be rounded off to the nearest million dollars, i.e., no decimal places)
Determine the Rate of Return (ROR) for the following project. Initial Capital Investment (P) = $2,942,825 Project Life (n) = 10 years Salvage Value at the end of year 10 $50,000 Equal Annual Revenues = $1,100,000 Equal Annual Operations and Maintenance Costs (AOC) = $400,000 Minimum Acceptable Rate of Return (MARR) = 22% ycy %3D %3D %3D That is the ROR of the project (to the nearest 1%)?
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1. Determine the B/C ratio for the following project. First Cost P100, 000 Project life, years 5 Salvage value P10, 000 Annual benefits P60, 000 Annual O and M P22, 000 Interest rate, % 15 Ans: B/C = 1.16
Determine the B/C ratio for the following project. First Cost P100, 000 Project life, years 5 Salvage value P10, 000 Annual benefits Р60, 000 Annual O and M Р22, 000 Interest rate, % 15
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Harris Corporation has provided the following data concerning an investment project that it is considering: Initial investment Annual cash flow Salvage value at the end of the project Expected life of the project Discount rate $ 160,000 $ 54,000 $ 11,000 O $67,000 O $160,516 O $516 O $(5,776) 4 15 per year years % Use Exhibit 7B-1 and Exhibit 7B-2, to determine the appropriate discount factor(s) using the tables provided. The net present value of the project is closest to:
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Determine the B/C ratio for the following project.First Cost = P100, 000Project life, years = 5Salvage value = P10, 000Annual benefits = P60, 000Annual O and M = P22, 000Interest rate= 15%