1. FW of Alt. A is $Blank 1 FW of Alt. B is $Blank 2 2. 3. FW of Alt. C is sBlank 3 4. FW of Alt. D is $Blank 4 5. Select Alternative (Write only the letter if A,B,C or D) Blank 5
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- Determine feasibility of the project using FW Method. Use MARR = 10%. Alternatives А B C D Capital investment -$150,000 -$85,000 -$75,000 -$120,000 Annual revenues $28,000 $16,000 $15,000 $22,000 Annual expenses -$1,000 -$550 -$500 -S700 Market Value (EOL) $20,000 $10,000 $6,000 $11,000 Life (years) 10 10 10 10 Round off your answer to the NEAREST WHOLE NUMBER Ex. 12345 FW of Alt. A is Blank 1 FW of Alt. B is Blank 2 FW of Alt. C is Blank 3 FW of Alt. D is Blank 4Data pertaining to investment proposals is provided below: A B D -$40,000 $57,600 $17.600 Investment required -$260,000 $505,900 $245.900 -$125,000 -$640,000 $224,300 $99.300 6. Present vahue of cash inflows $1.021,400 NPV Usefil lfe of the project $381.400 6 Calculate project profitability index to rank proposals in tem of preference. Answer Choices: Project Investment profitability a. proposal Rank index preference 0.95 0.44 0.79 0.60 A 1st B 4th 2nd 3rd Project Investment profitability ь. proposal Rank preference 1.95 index A 1st B 1.44 4th 1.79 1.60 2nd D 3rd Project Investment profitability proposal Rank index preference 0.49 0.31 A 1st B 4th 0.44 2nd 0.37 3rd Project Investment profitability d. proposal Rank index preference A 1.45 1st B 0.94 4th 1.29 1.10 2nd 3rd Dfind FW of Alt. A find FW of Alt. B find FW of Alt. C find FW of Alt. D
- table is given below : attached image g) If projects are mutually exclusive, which project would you accept? i) at 5% ii) at 15% h) If projects are independent (not mutually exclusive), which project(s) would you accept? i) at 5% ii) at 15%Information on four potential projects is given below: Projects A B C D Investment required $(350,000) $(390,000) $(450,000) $(480,000) Present value of cash inflows 535,000 590,000 670,000 730,000 Net present value $185,000 200,000 $220,000 $250,000 Ignore income taxes Required: Compute the project profitability index for each project. Rank the projects in terms of preference.The following table contains information about four potential investment projects that Castle Corporation is considering. Required Investment $640,000 Payback Project A Project Life ARR Period 5 19.50% 3.9 B $ 890,000 4 17.75% 3.5 с $ 1,140,000 4 10.75% 3.2 NPV $203,250 $193,062 $ 216,670 Profitability Index 2.88 1.22 1.35 D $ 1,640,000 5 12.45% 3.8 $ 246,008 1.30 Required: 1. Rank the four projects in order of preference under each method indicated by the headers: 2. Which method is the best for evaluating the investments? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Rank the four projects in order of preference under each method indicated by the headers: 1st preferred 2nd preferred 3rd preferred 4th preferred Accounting Rate of Return Payback Period Net Present Value Profitability Index
- You are given the following data for a project that is to be evaluated using the APV method. Year EBIT CAPEX 0 O $201.765 O $193,822 O $185,617 O $222,872 O $213,918 1 $127.000 $60,000 2 Depreciation Increase in NWC Year-end net debt $80,000 Cost of net debt = 8% Unlevered cost of capital = 11.8% Corporate tax rate = 30% Calculate the total value of the project at t = 0. using the APV method. $72,000 $50,000 $100,000 $133,000 $40,000 $80,000 $60,000 $140,000 3 $138.500 $10,000 $84,000 $30,000 $140,0005. The data below are estimated for a project study. į = 10% Plan A Initial Investment Annual Operating Cost Life Salvage Value Annual Revenue Plan B Initial Investment Annual Revenue Annual Disbursement Life Salvage Value P 35,000 P 6,450 4 years none 19,000 P 50,000 P 25,000 P 13830 8 years none Which plan would you recommend? Use Present Worth Method and 8 years of study period. Profit for Plan A = 9047.85 Profit for Plan B =9, 591.13Given the data in the following table, what is the IRR of Project B?
- If a $300,000 investment has a project profitability index of 0.25, what is the netpresent value of the project?a. $75,000b. $225,000c. $25,000d. $275,000Compare the following projects using the NPV method and the EAA method if the cost of capital is 17%. Year Project A Project B 0 ($400,000) ($400,000) 1 $175,000 $160,000 2 $225,000 $160,000 3 $300,000 $160,000 4 $200,000 $160,000 5 $160,000 6 $155,000 7 $155,000 8 $155,000 Use the information given in problem 8 to replicate Project A and compute the NPV of the new project that lasts for 8 years.The net present value of four projects is given below: Project W: $24,000 Project X: $ 11,000 Project Y: $20,000 Project Z: $14,000 The four projects given above require the same amount of investment. How would you rank them using net present value (NPV) method? Group of answer choices X, Z, Y, W W, X, Y, Z W, Y, Z, XX, Y, Z, W