3.1 Use the generated information to calculate the NPV of the project, to decide whether to go ahead withthe project.Investment requiredExpected economic lifetimeR200 0005 years.Minimum required rate of return10%Net annual cash inflows1st year2nd yearR40 000R100 000R90 0003rd yearR40 0004th yearR30 0005th year

Detailed explanation:We are here to calculate the net present value of the project, whereby we…

Answered: 3.1 Use the generated information to…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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The Town of Broomville, along with local arts and athletic groups, decided to erect a new community centre for sports, music, and theatre. The total estimated cost was $18,000,000 in April. Jane Borkus, president and CEO of the largest local industry. Autotech, promised to match every dollar raised through other donors, up to $9,000,000. Both she and the delighted town mayor, Geoff Johns, made the announcement over the local television station and in a joint statement in the town's newspaper. Borkus said the deadline would be 12 months. The following January, the campaign was proceeding extremely well; other donors had pledges $5,500,000 and Borkus presented a cheque for $4,000,000 as Autotech's "down payment and pledge of good will." Unfortunately, in March, Autotech lost its major contract to supply car parts to one of the big three auto manufacturers. Anticipating a large loss at year's end, Borkus withdrew the pledge and asked for the return of the down payment. Broomville will…
Risk Aversion; Strategy John Holt is the production supervisor for ITEXX, a manufacturer of plastic parts with customers in the automobile and consumer products industries. On aTuesday morning, one of ITEXX’s sales managers asks John to reschedule his manufacturingjobs for the rest of the week to accommodate a special order from a new customer. The catchis that getting the customer requires fast turnaround on the order and means not only delayingthe current production schedule, but also running the production equipment all three shifts forthe remainder of the week. This will make it impossible to complete the regularly scheduledmaintenance on the equipment that John has planned for midweek. The sales manager is keen ongetting the new customer, which could mean an important increase in overall sales and output atthe plant. However, John is worried not only about the delay of the current jobs, but the chancethat the delay in maintenance will cause one of the machines to fail, which would…
Refer to exercise 2(a). The estimated cost to complete the house by contractors is (choose the best answer): $348,000 B $334,080 $320,160 $299,280 E
Thanks and the cost of capital is not necessary to solve this problem?
Note: end of the question answer also given. I want A&D only. Onc aagain remember I want only A&D part A. What is the probability that path A-B-D-F-G will take from 100 to 120 days to complete? Answer = 40.2% B. What is the probability that path A-C-E-G will take less than 85 days to complete? Answer = 32.64% C. If the contract for the above project is 120 days, what is the chance of meeting the schedule? Answer = 86.3% D. What duration (number of full days) should be used to be at least 90% confident of finishing on time? Answer = 125 days - Probability of 93%
b. What is the expected value for the rezoned apartments, if the rezoning cost is included (but land cost is excluded)? Note: Do not round your intermediate calculations. Enter your answers in millions rounded to 2 decimal places. Negative amounts should be indicated by a minus sign. Expected value million c. If the land is rezoned, what should the contractor decide? O Build shopping center O Build apartments d. What is the expected revenue, if the land is not rezoned (excluding the land cost)? Note: Do not round your intermediate calculations. Enter your answers in millions rounded to 2 decimal places. Negative amounts should be indicated by a minus sign. Expected revenue million e. What is the expected net profit of entire project, including all applicable costs? Note: Do not round your intermediate calculations. Enter your answers in millions rounded to 2 decimal places. Negative amounts should be indicated by a minus sign. Expected net profit million
Current Attempt in Progress Joyful Journeys Music School provides private music lessons for elementary students. Its operating costs are as follows: Rent on facilities Advertising Instrument Rent Teaching Instruction Books Other Costs $2,010 per month $534 per month $750 per month $38 per student $5 per student $3 per student Joyful Journeys charges $100 per student per month. Determine the company's break-even point in (1) number of students taught per month and (2) dollars. (1) Break even in number of students taught per month (2) Break even in dollars eTextbook and Media
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Q2: A company invested an amount of $85,000 to implement a project, and the expected receipts from this project during the 5 years were as follows: End the year 11/ 2 $25,000 Receipts() $10,000 3 $35,000 4 $45,000 5 $30,000 Find I.R.R and determine if the project is desirable or not If the MARR was 16%?
in what ways marriot in St. Kitts has budget for resort facilities and comply with international standards?

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