Compute the Pl statistic for Project Z if the appropriate cost of capital is 7 percent.Project ZTime:Cash flow:012345-$ 1,400$ 430$ 560$ 730$ 380$ 180Should the project be accepted or rejected?Note: Do not round intermediate calculations and round your final answer to 2 decimal places.PIShould the project be accepted or rejected?

The profitability index (PI) is the ratio of the present value of a project's expected future cash…

Answered: Compute the Pl statistic for Project Z…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Q1. Calculate EOQ and plot a graph with the following information. Annual Usage= 1600 units Holding Cost $8 unit/yr Ordering Cost = $100 unit/yr > Price of per Unit= $50 Number of Units 1600 800 400 200 100 80 50 Number of Order 1 2 4 8 16 20 32
Profitability Index A project has an initial cost of $40,000, expected net cash inflows of $12,000 per year for 7 years, and a cost of capital of 9%. What is the project's PI? (Hint: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to two decimal places.
kuzukuzu12121@outlook.com just sent here I NEED EXCEL FİLE. Determine the NPW, AW, FW and IRR of the following engineering project. Initial Cost ($400,000) The Study Period 15 years Salvage (Market) Value of the project 15% of the initial cost Operating Costs in the first year($9,000) Cost Increase 3% per year Benefits in the first year $40,000 Benefit Increase 9% per year MARR 8% per year Is the Project acceptable? WHY?
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Give typing answer with explanation and conclusion
Econo-Cool air conditioners cost $320 to purchase, result in electricity bills of $154 per year, and last for 5 years. Luxury Air modeis cost $520, resuit in electricity bils of $108 per year, and last for 8 years. The discount rate is 25%. a. What is the equivalent annual cost of the Econo-Cool model? (Do not round intermediate calculations, Round your answers to 2 decimal pleces.) Econo-Cool Equivalent annual cost b. What is the equivalent annual cost of the Luxury Air model? (Do not round intermediete calculations. Round your answers to 2 decimal pleces.) Luxury Air Equivalent annual cost
Compute the IRR statistic for Project E. The appropriate cost of capital is 8 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Project E Time: Cash flow: 0 -$1,000 $350 1 2 3 4 5 $480 $520 $300 $100 IRR % Should the project be accepted or rejected? O accepted O rejected
You are considering an open-pit mining operation. The cash flow pattern issomewhat unusual since you must invest in some mining equipment, conductoperations for two years, and then restore the sites to their original condition.You estimate the net cash flows to be as follows: N Cash flow 0 -$1,600,0001 1,500,0002 1,500,0003 -700,000 What is the approximate rate of return of this investment?(a) 25%(b)38%(c) 42%(d)62%
Problem 1 - Revenue and Cost Calculations A manufacturing plant operation has fixed costs of $2,500,000 per year, and its output capacity is 0 - 100,000 electrical appliances per year. When the plant is operating at 100% capacity, the total variable cost is $3,500,000. The product sells for $90 per unit. 1. What is the maximum expected total revenue? 2. What is the variable cost per UNIT? 3. What is the breakeven number of electrical appliances? 4. What is the expected profit if the plant operates at 85% of capacity (85,000 units)? Construct the economic breakeven chart. This should be sketched on paper (do not use Desmos). Label all lines and points of intersection. Include this chart in your upload of supporting work.
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
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Fill in the missing values: QP TC TB Tprofit MC MB Mprofit ATC AFC AVC 16 500-50 ΝΑ ΝΑ ΝΑ ΝΑ ΝΑ ΝΑ 16 132 16 16 156 16 186 0 5 6 7 8 16 9 16 272 10 16 332 16 224

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