4. Using a discounted rate of 12 percent,INITIAL COSTNET CASH FLOWYEAR 1YEAR 2YEAR 3YEAR 4YEAR 5PROJECT A (BROILER)K100,000(20,000)10,00040.00040.000150.000PROJECT B (LAYERS)K100,00033,00033,00033,00033,00033,000a. Determine the net present value of project A and Bb. Calculate the IRR on mutually exclusive investment of project A and B.C. Which project must the farm undertake and why?

Answered: Image /qna-images/answer/980fa279-7cc2-4b69-9f32-3001b688c025.jpg

Answered: 4. Using a discounted rate of 12…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Rare Agri-Products Ltd. is considering a new project with a projectedlife of seven (7) years. The project falls under the government’ssubsidy program for encouraging local agricultural products and iseligible for a one-time rebate of 25% on any initial equipmentinstalled for the project. The initial equipment (IE) will cost$41,000,000.An additional equipment (AE) costing$3,500,000 will be needed at the end of year 3. At the end of seven(7) years, the original equipment, IE, will have no resale value butthe supplementary equipment, AE, can be sold for $50,000. A workingcapital of $1,350,000 will be needed.The project is forecast to generate sales of agri-products over theseven years as follows:Year 1 70,000 unitsYear 2 100,000 unitsYears 3-5 250,000 unitsYears 6-7 325,000 unitsA sale price of $150 per unit for the first two years is expected andthen decline to $90 per unit thereafter as the newness of the productloses some sheen. The variable expenses will amount to 30% of salesrevenue.…
Consider the office renovation project data in Table 7.16. A“zero” time estimate means that the activity could take a verysmall amount of time and should be treated as a numericzero in the analysis.a. Based on the critical path, find the probability ofcompleting the office renovation project by 39 days.b. Find the date by which you would be 90 percent sure ofcompleting the project.
B indicate critical path C what is expected completion for the project? D what is the probability that the project will take more than 30 days to complete?
Deavyanne Johnston, the engineering manager at TZO Chemicals, wants to complete an alternative evaluation study. She asked the finance manager for the corporate MARR. The finance manager gave her some data on the project and stated that all projects must clear their average (pooled) cost by at least 4%. a. Use the data to determine the minimum MARR.b. The study is after-taxes and part (a) provided the before-tax MARR.Determine the correct MARR to use if Te was 32% last year and the finance manager meant that the 4% above the cost is for after-tax evaluations.
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…
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
What is the minimum cost of crashing the following project at Sawaya Robotics by 4 days? NORMAL CRASH TIME (DAYS) TIME (DAYS) 9 7 7 6 5 4 6 4 9 6 ACTIVITY Design (A) Wiring (B) Chip install (C) Software (D) Testing (E) The minimum cost of crashing the following project at Sawaya Robotics by. 4 days is $ NORMAL COST 200 800 600 1,100 1,200 CRASH COST 300 875 675 1,300 1,875 IMMEDIATE PREDECESSOR(S) (enter your response as a whole number). A, B C
Consider a project with an initial investment of $60,000, a 6 year useful life (and study period), and a $10,000 salvage value. You expect an annual net revenue of $15,000 (before tax), a MARR before tax of 15.3%, and an effective tax rate of 35%. The capital equipment is to be depreciated using MACRS GDS and a 3 year class life. A)For the cash flow , compute after-tax MARR and evaluate the cash flow using an equivalent worth method. B) Develop the after-tax cash flows for the project of using a 4 year class life and MACRS ADS. Draw the after-tax cash flow diagram.
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%
The manager of the Oak Hills Swimming Club is planning the club’s swimming team program. The first team practice is scheduled for May 1. The activities, their immediate predecessors, and the activity time estimates (in weeks) are as follows: Activity Optimistic Most Probable Pessimistic Immediate Predecessors A 1 2 3 - B 4 6 8 A C 2 4 6 A D 1 2 3 B, C E 2 3 4 B F 1 2 3 A G 1 2 3 D H 1 2 3 G I 1 1 1 E, H, F A. Draw a project network for this problem. B. Fill in all the blanks in the following table. Note: For variance (σ2) in activity time, keep two decimal places. Activity Expected Time t (weeks) Variance σ2 ES EF LS LF Slack Critical Path? A B C D…
Rr.6.
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