7 independent project proposals from various departments of an enterprise has come. The budget allocated by the management for these projects is 600,000 TL. Current value identify the appropriate projects using the method. (I = 20% will be accepted and the first take p=0.2 for trial. ) Cost Annual Smooth Useful Scrap Value (Thousand Project TL) earnings (thousand TL) lifetime (year) (Thousand TL) 1 200 60 10 100 35 6. 10 3 100 30 10 4 150 46 8 250 75 10 10 100 45 4 7 50 19 8 00

7 independent project proposals from various departments of an enterprise has come. The budget allocated by the management for these projects is 600,000 TL. Current value identify the appropriate projects using the method. (I = 20% will be accepted and the first take p=0.2 for trial. ) Cost Annual Smooth Useful Scrap Value (Thousand Project TL) earnings (thousand TL) lifetime (year) (Thousand TL) 1 200 60 10 100 35 6. 10 3 100 30 10 4 150 46 8 250 75 10 10 100 45 4 7 50 19 8 00

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Required information The following data is provided for a PPP project. To the Government $1.8 milion naw and $200,000 every 3 years To the People Benefits $90,000 per year beginning now Cost $25,000 per year Savings $115,000 per year Disbenefits Calculate the conventional benefit/cost ratios using an interest rate of 7% per year and an infinite project period. The conventional B/C ratio is
3:Consider the following financial data for a project. 2- Find the (ROR) for the project.. We jus المصرر AP 1 = 10) b- If the the expense will increase by 10%, find the annual revenue that will make (POR-10%) Initial investment 18 000 CU Annual revenue 5000 CU Annual expense 3000 CU Salvage value 4500 CU Project life 12 YEARS
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 4
Solve c) What is the payback period (PB) for this project?
3. The Clearwater Company has a budget of $500000 which can be spent on the five independents projects. If MARR = 20%, how should the budget be allocated? Total Project Project Number i* Cost 1 29.1% $150000 2 10.5% 50000 21.5% 200000 4 19.5% 75000 23.2% 25 000
The Clearwater Company has a budget of $500000 which can be spent on the five independents projects. If MARR = 20%, how should the budget be allocated? Total Project Number Project Cost i* 1 29.1% $150000 2 10.5% 50000 3 21.5% 200000 4 19.5% 75000 23.2% 25000
.
A firm evaluates all of its projects by applying the IRR rule. If the required return is 14 percent, should the firm accept the following project? Input area: Required Return Year 0 Year 1 Year 2 Year 3 (Use cells A6 to B10 from the given information to complete this question.) Output area: 14% ($41,000) $20,000 $23,000 $14,000 IRR
Suppose now that we have a multi-period project. The project costs $100,000 Perlodi Perlod2 Perlod3 CF1 pl CF2 pl CF3 pl 23797.53 0.4 33226.74 0.3 24246.54 0.1 47595.06 0.5 66453.48 0.6 48493.08 0.7 71392.59 0.1 99680.22 0.1 72739.62 0.2 1/ Find the E(CF1), E(CF2) and E(CF3) 2/ Find the V(CF1), V(CF2) and V(CF3) 3/ IF the requlred rate of return Is 9% then 3-1 Find E(NPV) 3-2 Find V(NPV) if we consider Independence Between the Cash Flows 3-3 Find the o(NPV) if we consider total dependence Between the Cash Flows. 3-4 Find the probability that the NPV of the project is less than to zero the if we consider total dependence Between the Cash Flows
The internal rate of return (IRR) of a certain project is 11 % and the capital investment is $400,000. What is the present worth of this project at MARR = 15 % ? Note : This is not an assignment question and not a graded question... Thank you
s
G.3. A proposed geothermal energy project has an initial cost of $1,000K. In addition it will re- quire an infinite series of periodic maintenance expenditures at five-year intervals following the first maintenance expenditure at EOY 2. Find the equivalent annual cost with n oo and i = 88 percent per year. EOY Expenditure Initial cost $1,000K Periodic maintenance 140K Same 200K Same 260K 17 Same 320K etc. to oo etc, to oo (Ans. NAW = $137,510K/yr) %3D O2725

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