As the new engineer in the company, you are tasked to send out a proposal for an expansion of the current manufacturing plant. As per research, you came up with a summary of the capital needed and it is amounting to Php 18,500,000.00. Annual depreciation is noted as well as 10% of your capital invested. You are asked to determine the rate of return if your projected annual revenue is at Php 5.500,000.00. Express the answer in percentage, up to two decimal places/digits. Answer Blank 1%

As the new engineer in the company, you are tasked to send out a proposal for an expansion of the current manufacturing plant. As per research, you came up with a summary of the capital needed and it is amounting to Php 18,500,000.00. Annual depreciation is noted as well as 10% of your capital invested. You are asked to determine the rate of return if your projected annual revenue is at Php 5.500,000.00. Express the answer in percentage, up to two decimal places/digits. Answer Blank 1%

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 5PB: Mason, Inc., is considering the purchase of a patent that has a cost of $85000 and an estimated...

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As the new engineer in the company, you are tasked to send out a proposal for an expansion of the current manufacturing plant. As per research, you came up with a summary of the capital needed and it is amounting to Php 18,500,000.00. Annual depreciation is noted as well as 10% of your capital invested. You are asked to determine the rate of return if your projected annual profit is at Php 5,500,000.00. Express the answer in percentage, up to two decimal places/digits.
An engineer is planning to purchase a CHB machine worth 180,000 that can produce a uniform annual revenue of 25,500 with a salvage value of 5,000 after 6 years. If the engineer is expecting to earn at least 15% of his capital, should he invest? Show your conclusion using: a.) using present worth method b.) future worth method. (SHOW THE SOLUTION AND DO NOT USE EXCEL).
Falkland, Inc., is considering the purchase of a patent that has a cost of $49,000 and an estimated revenue producing life of 4 years. Falkland has a cost of capital of 10%. The patent is expected to generate the following amounts of annual income and cash flows: https://openstax.org/books/principles-managerial-accounting/pages/time-value-of-money A. What is the NPV of the investment? Round your present value factor to three decimal places and final answer to the nearest dollar. $ _____ B. What happens if the required rate of return increases? If the required rate of return increases, ______
Assuming that you would like to buy an equipment for your small business. Using the information below, calculate the Rate of Return and the Pay Back Period for the investment. After presenting your calculations, explain why you think this will (or will not) be a good investment. Here are the numbers: Cost of the investment is $100,000 Estimated depreciable life of investment is 5 years Annual depreciated charge is $15,000 Estimated average profit over depreciable life is $10,000.
An engineer is planning to purchase a CHB machine worth 180,000 that can produce a uniform annual revenue of 25,500 with a salvage value of 5,000 after 6 years. If the engineer is expecting to earn at least 15% of his capital, should he invest? Show your conclusion using present worth method and future worth method.
You are an employee of University Consultants, Ltd., and have been given the following assignment. You are to present an investment analysis of a new small residential income-producing property for sale to a potential investor. The asking price for the property is $1,250,000; rents are estimated at $200,000 during the first year and are expected to grow at 3percent per year thereafter. Vacancies and collection losses are expected to be 10 percent of rents. Operating expenses will be 35 percent of effective gross income. A 70 percent loan can be obtained at 11 percent interest for 30 years. The property is expected to appreciate in value at 3 percent per year and is expected to be owned for five years and then sold. a. What is the investor’s expected before-tax internal rate of return on equity invested (BTIRR)?b. What is the first-year debt coverage ratio?c. What is the terminal capitalization rate?d. What is the NPV using a 14 percent discount rate? What does this mean?
Develop a financial feasibility study for a radiators' factory in an excel sheet. Please assume that the total cost of the factory is C million SR. Show all the expenses details such as land cost, machine cost, etc. for the establishment and running costs. C equals = 9 The Annual Percentage Rate (APR) =10% Adjust all other assumptions in the excel sheet so that the Net Present Value (NPV) = 2 Million SR in 4 years.
A colleague of yours is planning to start a small, plastic components manufacturing business. He has invited you to be a partner. Best estimates for the total depreciable capital for equipment which includes a compounder and extruder is $500,000. Expected sales amount to $250,000 annually and total manufacturing costs without depreciation was estimated to be about $96,500 yearly. If equipment can be purchased and installed in one year and the project has a ten year life, perform a complete discounted cash flow analysis and make a decision if you should invest or not. Assume straight-line depreciation for ten years at which point the equipment salvage value will be zero. Also assume that uou can invest at 10% interest in other opportunitites for comparison.
An engineer developed a fee proposal that requests the owner pay $20,000 after 6 months of work and $40,000 after 12 months. The engineer spent $8.000 developing the proposal and will spend $4,000 each month working on the project. The engineer can borrow funds at enn- 12% per year, invest at eny 6% per year, and desires an MARR of 9%. Using MIRR analysis, determine the attractiveness of this project. O Attractive O Not Attrative O No answer text provided. O No answer text provided.
Falkland, Inc., is considering the purchase of a patent that has a cost of $50,000 and an estimated revenue producing life of 4 years. Falkland has a cost of capital of 8%. The patent is expected to generate the following amounts of annual income and cash flows: A. What is the NPV of the investment? B. What happens if the required rate of return increases?
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Mason, Inc., is considering the purchase of a patent that has a cost of $85000 and an estimated revenue producing lite of 4 years. Mason has a required rate of return that is 12% and a cost of capital of 11%. The patent is expected to generate the following amounts of annual income and cash flows: A. What is the NPV of the investment? B. What happens if the required rate of return increases?