Q3: An engineer determined the payback period of the project contract to be 9 years. Thefollowing table presents the project contact cost information:Annual costFirst cost15 MSalvage5 MContract3MIfi-13%, do you agree with that an engineer, and why?

Given information : Initial cost 15000000 Annual cost 3000000 Salvage 5000000 The…

Answered: : An engineer determined the payback…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

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Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 11MC: Dixon Construction Materials has collected this information: Based on this Information, what is the...

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Brian Heun, president of Concrete Always, agrees to construct a concrete cart path at Dakota Golf Club. Concrete Always enters into a contract with Dakota to construct the path for $236,000. In addition, as part of the contract, a performance bonus of $47,200 will be paid based on the timing of completion. The performance bonus will be paid fully if completed by the agreed-upon date. The performance bonus decreases by $11,800 per week for every week beyond the agreed-upon completion date. Brian has been involved in a number of contracts that had performance bonuses as part of the agreement in the past. As a result, he is fairly confident that he will receive a good portion of the performance bonus. Brian estimates, given the constraints of his schedule related to other jobs, that there is 55% probability that he will complete the project on time, a 30% probability that he will be 1 week late, and a 15% probability that he will be 2 weeks late.
Determine the B/C ratio for the following project.First Cost = P100, 000Project life, years = 5Salvage value = P10, 000Annual benefits = P60, 000Annual O and M = P22, 000Interest rate= 15%
Answer the questions ASAP.
Assume that Jeff Heun has reviewed his work schedule and decided that it makes sense to complete this project on time. Assuming that he now believes that the probability for completing the project on time is 95% and otherwise it will be finished 1 week late, determine the transaction price. Transaction price $enter the transaction price in dollars
Project 1. Riccarton plc is considering five project proposals. They are summarised below: Initial Annual Investment(£000) Revenue(£000) Annual Fixed Costs(£000) Life of Project(Year) A 10 20 5 3 B 30 30 10 5 C 15 18 6 4 Ꭰ E 12 18 17 8 10 8 2 15 Variable costs are 40 per cent of annual revenue. Projects D and E are mutually exclusive. Each project can only be undertaken once and each is divisible. Assume: - The cash flows are confined to within the lifetime of each project The cost of capital is 10 per cent. No inflation No tax All cash flows occur on anniversary dates. If the firm has a limit of £40,000 for investment in projects at Time 0, what is the maximum net present value obtainable?
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
Solve c) What is the payback period (PB) for this project?
H3. Please show proper step by step calculation
Compute the IRR, NPV, Pi, and payback period for the following two projects. Assume the required return is 10%. Year Project A Project B 0 $-200 $-150 1 $200 $50 2 $800 $100 3 $-800 $150 Please show inputs from the BAII Plus Financial calculator of how to get these answers
Marissa Manufacturing is presented with the following two mutually exclusive projects. The required return for both projects is 16 percent. Year 0 Project M -$ 139,000 Project N -$ 366,000 1 64,600 147,000 2 82,600 191,000 3 4 73,600 59,600 132,000 121,000 a. What is the IRR for each project? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. b. What is the NPV for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. c. Which, if either, of the projects should the company accept? a. Project M Project N b. Project M Project N c. Accept project % %
A company is considering two types of equipment with the following informations. Using benefit - cost ratio which equipment must be adopted if money is worth 10% per annum. Туре А P5,000.00 1,250.00 1,080.00- 2,380.00 Туре В MP11,750.00 3,750.00 1,130.00 3,880.00 First Cost Salvage Value Annual Maintenance Cost Annual Benefits Life, years 12 G00.02.
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: An engineer determined the payback period of the project lowing table presents the project contact cost information: Annual cost 3M First cost Contract 15 M