What is the capital recovery (CR) cost of the project? Assume Cash Flow First cost, S Annual cost, S per year Revenue, S per year -1,000,000 -10,000 110,000 Salvage value, S Life, years
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- The table bellow shows the cash flow for an engineering project, if the reinvestment rate of return e is 6% per year, the external rate of rate (EER) is EOY Cash flow $ 13000 14 2000 5 to 10 8000Calculate the Equivalent X(4) for a project with the following cash flows: First Cost (F.C) = JD 13000, Annual Income for the last 6 years= JD 2400 Operating Cost (O.C.) = JD 30 Income, at the end of the 4th year = JD 5000, Salvage Value (S.V.) = 1800. If n= 9 years and i=7% per year. ( show the CFD and calculations)Determine the ROR, AW, and PP of the following engineering project when the MARR is 20% per year. Is the project acceptable? Engineering Project Details Investment cost $60,000 Expected life 7 years Annual receipts $15,000 Annual expenses $2,675.40 a. The Rate of Return of the project is ? Write the answer in percentage value, up to 2 decimal places. b. How much is the cash flow excess? Roundoff answer to the whole number. c. The payback Period is Write the answer in two decimal places.
- A Kshs.2.2 million investment will result in the following year end- cash flows : Year Cash flow 1 Kshs 1.6 million Kshs 800,000 3 Kshs.1.3 million 4 Kshs.1.9 million Using an 8% cost of capital, the project's net present value (NPV) is closest to: 2.The table bellow shows the cash flow for an engineering project, if the reinvestment rate of return e is 6% per year, the external rate of rate (EER) is : EOY Cash flow $ 13000 14 -2000 5 to 10 8000 Select one: O a 14.3% O b. 17.6% O G 7% O d. 20.1% O e. 10%A project is estimated to cost P120T, last 8 years & have a salvage value of P20T. The annual gross income is expected to average P40k & annual expenses is P6T. If capital is earning 12% determine if this a desirable investment using rate of return, what is ROR. a. 20.07% b. 21.7% c. 19.77% d. 20.77%
- Using the method of your choice calculate the Net Present Value of the following cash flows. Assume that the required return on this project is 15% Project A Initial Cost -$150 Year 1 $175 Yeat 2 $100Assume a project has cash flows of -$54,300, $18,200, $37,300, and $14,300 for Years 0 to 3, respectively. What is the profitability index given a required return of 12.6 percent? 1.02 .95 .98 1.06 ☐ 1.00The cash flow estimates of a project are shown in the table below, and the MARR is 6% per year. Of the following three relations, the correct one to calculate the annual worth of this project is: Cash Flow First cost, S Annual cost, S per year Revenue, S per year Salvage value, S Life, years -200 -50 120 25 10 Relation 1: AW=-200(A/P,6%,10)+70+25(A/F,6%,10) Relation 2: AW=[-200-50(P/A,6%,10)+120(P/A,6%,10)+25(P/F,6%,10)|(A/P,6%,10) Relation 3: AW=-200(F/P,6%,10)+25+(-50+120)(A/P,6%,10) O Relation 1 and 3 OARelation 1 and 2 O Only Relation 1 O Only Relation 3
- A project is estimated to cost P110,000, last 8 years and have a P15,000 salvagevalue. The annual gross income is expected to average P24,000 and annualexpenses, excluding depreciation, will total P6,000. If capital is earning 10% beforeincome taxes, determine if this is a desirable investment using A. Present Worth Method :B. Future Worth MethodC. Payback Period in yearsA project is estimated to cost P120T, last 8 years & have a salvage value of P20T. The annual gross income is expected to average P40k & annual expenses is P6T. If capital is earning 12% determine if this a desirable investment using rate of return. What is your computed ROR? Select one: a. 20.07% b. 21.07% c. 17.17% d. 23.17%4. Engineering company has a project and the project capital is 60000 RO. The interest compounded yearly from the project is 0.35 and the total project profits function in response of time (years)is P(t) = C(1+r)t C: capital of the project r: interest compounded yearly t: time in year After how many years the total project profits will be more than 1 million OR