A company has a required rate of return of 11% for Project A and 11.5% for Project B. The company has a $1.5 million budget to spend on new projects for the year. Should the company move forward with one, both, or neither of the two new products?

Chandler Tire Co. is trying to decide which one of two projects it should accept. Both projects have the same start-up costs. Project 1 will produce annual cash flows of $52 000 a year for six years. Project 2 will produce cash flows of $48 000 a year for eight years. The company requires a 15% return. Which project should the company select and why? a. Project 1; because the annual cash flows are greater than those of Project 2. b. Project 1; because the present value of its cash inflows exceeds those of Project 2 by $14 211.62. c. Project 2; because the total cash inflows are $70 000 greater than those of Project 1. d. Project 2; because the present value of the cash inflows exceeds those of Project 1 by $18 598.33.

Giant Equipment Ltd. is considering two projects to invest next year. Both projects have the same start-up costs. Project A will produce annual cash flow of $42 000 at the beginning of each year for eight years. Project B will produce cash flow of $48 000 at the end of each year for seven years. The company requires a 12% return. Required:a. Whichprojectshouldthecompanyselectandwhy?b. Which project should the company select if the interest rate is 14% andthe cash flow in Project B is also at the beginning of each year?Please give me subheading answer.

Assume the following facts: A project will cost RM45 000 to develop. When the system becomes operational, after a one-year development period, operational costs will be RM9000 during each year of the system’s five year useful life. The system will produce benefits of RM30 000 in the first year of operation, and this figure will increase by 10% each year. When is the payback period for this project? Using the same facts, what is the ROI for this project? Using the same facts, what is the NPV for this project? (*Assuming 12% rate)

Hawk, Inc. has a 15% required rate of return. Three divisions of Hawk have proposed three projects to increase income over the next 12 years. Three divisions report different measures as follows: Project A was reported to have an NPV of ($530) or negative $530. Project was reported with an internal rate of return of 18%. Project C was reported to have a payback period of 15 years. With which of these projects should Hawk move forward? O All three sound great! O Project A O Project C O Project B

Cullumber Corp. management is expecting a project to generate after-tax income of $76,300 in each of the next three years. The average book value of the project’s equipment over that period will be $194,140. If the firm’s investment decision on any project is based on an ARR of 37.5 percent. What is the project's accounting rate of return? - Accounting rate of return is ?

A company can earn 8.5% on amount deposited now. For an IT project, the company predicts to have these components costs: Yearl $25,000 Cost associated with year 1 reduced by 21% Cost associated with year augmented by 3% Year2 Year6 How much money should the company deposit now. At the end of each year, try to analyze the balance (the available amount of money against the inflow).

Assume that a company is considering purchasing a machine for $70,000 that will have a seven-year useful life and no salvage value. The machine will lower operating costs by $18,000 per year and increase sales volume by 1,000 units per year. The company earns a contribution margin of $3.00 per unit. The company's required rate of return is 17%. The internal rate of return for this investment is closest to: Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided. Multiple Choice O 23%. 25%. 21%. 19%.

Giant Equipment Ltd. is considering two projects to invest next year. Both projects have the samestart-up costs. Project A will produce annual cash flows of $42,000 at the beginning of each year foreight years. Project B will produce cash flows of $48,000 at the end of each year for seven years. Thecompany requires a 12% return. a. Which project should the company select and why? b. Which project should the company select if the interest rate is 14% at the cash flows in Project Bis also at the beginning of each year?

A new garbage truck can be purchased for $64,000. Its expected useful life is six years at which time its market value will be zero. Annual receipts is expected to be $20,000 with expenses of $2,000 per year over the six-year study period. The company's MARR is 18%. a. What is the ROI? b. Determine if this is a good investment using Net Present Worth(NPW) method. c. What is its Net Annual Worth? d. Using IRR method, is this investment acceptable?