tax quiz 6 2

(b) In order to choose between Project A and Project B, the project planner must make a decision. The following data pertains to the projects: Project P Project Q Capital cost of asset 60,000 60,000 Profits before depreciation Project A Project B Year 1 20,000 50,000 Year 2 30,000 20,000 Year 3 40,000 5,000 Year 4 50,000 5,000 Year 5 60,000 5,000 (i) From the analysis using payback period method, which project will be more preferred? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

Best production company is evaluating the project under profitability index. Initial investment is $400,000 and net present value is $1,100,000. Profitability index of the project is: а. 2.75 b. 0.36 c. 1 d. None of the above

A developer plans to purchase a vacant lot and build apartment units for which represent the highest and best use of the land. Assuming the anticipated NOI for the projected units for $850,000, the market-derived cap rates for the building and land are 11% and 9% respectively, and the projected value of the proposed building is 5,900,000. Based on the land residual technique, the land value would be. a. $2,166,667 b. $2,233,333 c. $2,600,000 d. $2,900,000 The answer falls outside of the range provided. not satisfied from previous answer need well explained , computated and formulated answer

Bruin, Incorporated, has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 −$ 66,000 −$ 66,000 1 42,000 28,400 2 36,000 32,400 3 24,000 38,000 4 15,200 24,400 a-1. What is the IRR for each of these projects?   a-2. If you apply the IRR decision rule, which project should the company accept? b-1. Assume the required return is 12 percent. What is the NPV for each of these projects?   b-2. Which project will you choose of you apply the NPV decision rule? c-1. Over what range of discount rates would you choose Project A?   c-2. Over what range of discount rates would you choose Project B?   d. At what discount rate would you be indifferent between these two projects?

NEED the correct EXCEL INPUT, not just the number answer, please provide the excel code to get the answer from the image

Consider a project with the following information: Initial fixed asset investment = $515,000; straight-line depreciation to zero over the 4-year life; zero salvage value; price = $47; variable costs = $29; fixed costs = $207,000; quantity sold = 102,000 units; tax rate = 21 percent.    How sensitive is OCF to changes in quantity sold? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) find the change in OCF/Change in Q

Consider a project with the following information: Initial fixed asset investment = $515,000; straight-line depreciation to zero over the 4-year life; zero salvage value; price = $47; variable costs = $29; fixed costs = $207,000; quantity sold = 102,000 units; tax rate = 21 percent.    How sensitive is OCF to changes in quantity sold? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)   Change in OCF/ Change in Q =?

Lopez Industries has identified the following two mutually exclusive capital investment projects:   Year Project A Project B 0 -16000 -15500 1 400 12500 2 800 8000 3 13000 800 4 14000 800   What is the IRR for each of these projects? If you apply the IRR decision rule, which project should the company accept? Is this decision necessarily correct?

A Real Estate Investment Company (REIC) has a weighted average cost of capital at 10% and $2 million of total capital to invest. The REIC aims to earn rental income from the investment and do not intend to sell the property in the short term. Which of the following property is the most appropriate one to invest? Select one: a. Property A: 8% Cap Rate, NOI $400,000 b. Property A: 11% Cap Rate, NOI $180,000 c. Property A: 10% Cap Rate, NOI $100,000 d. Property A: 12% Cap Rate, NOI $300,000 None of the above e

what is the correct option account subjects

Garage, Inc., has identified the following two mutually exclusive projects:   Year Cash Flow (A) Cash Flow (B) 0 -$43,500 -$43,500 1 21,400 6,400 2 18,500 14,700 3 13,800 22,800 4 7,600 25,200   What is the IRR for each of these projects? Using the IRR decision rule, which project should the company accept? Is this decision necessarily correct? If the required return is 11 percent, what is the NPV for each of these projects? Which project will the company choose if it applies the NPV decision rule? Over what range of discount rates would the company choose project? A? Project B? At what discount rate would the company be indifferent between these two projects? Explain.

Bruin, Incorporated, has identified the following two mutually exclusive projects:     Year Cash Flow (A) Cash Flow (B) 0 −$ 28,500 −$ 28,500 1 13,900 4,050 2 11,800 9,550 3 8,950 14,700 4 4,850 16,300    a-1. What is the IRR for each of these projects?  a-2. Using the IRR decision rule, which project should the company accept?       multiple choice 1 Project A Project B   a-3. Is this decision necessarily correct?       multiple choice 2 Yes No   b-1. If the required return is 11 percent, what is the NPV for each of these projects? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)        b-2. Which project will the company choose if it applies the NPV decision rule?       multiple choice 3 Project A Project B    c. At what discount rate would the company be indifferent between these two projects? (Do not round intermediate…

Answer the given question with a proper explanation and step-by-step solution. Please provide the answer using the math tool otherwise I give the downvote.

Net present values for three alternative Investment projects follow. (a) If the company accepts all positive net present value Investments, which of these projects will it accept? (b) If the company can choose only one project, which will it choose? Potential Projects Net present value Project A $1,400 Project B $(12,100) Project C $15,000 (a) If the company accepts all positive net present value investments, which of these projects will it accept? (b) If the company can choose only one project, which will it choose?

Bruin, Inc. has identified the following mutually exclusive projects. 0 1 2 3 4 Cash Flows Project A ($37,500) $17,300 $16,200 $13,800 $7,600 Project B ($37,500) $5,700 $12,900 $16,300 $27,500 a. What is the IRR for each of these projects? b. Which project should be selected under the IRR rule? c. If the required return for each project were 11%, what is the NPV of each project. d. Which project should be selected under the NPV rule? e. How would you reconcile this conflict in project selection?

In the development of a publicly owned, commercial waterfront area, three possible independent plans are being considered. Their costs and estimated benefits are given in the table to the right. a. Which plan(s) should be adopted, if any, if the controlling board wishes to invest any amount required, provided that the B-C ratio on the required investment is at least 1.0? b. Suppose that 5% of the costs of each plan are reclassified as disbenefits. What percentage change in the B-C ratio of each plan results from the reclassification? c. Comment on why the rank-orderings in (a) are unaffected by the change in (b). a. Perform the B-C analysis. Fill-in the table below. (Round to four decimal places.) Plan A B-C ratio Is the alternative acceptable? Plan A B с PW ($000s) Costs Benefits $125,000 $139,000 107.000 152,000 137,000 104,000