Cost 500,000.00 1,285,000.00
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- Clarita Contracting builds roads, tunnels, bridges, and other transportation infrastructure. The following are the budgeted costs and time (months) to a given stage of completion for a project to upgrade a bridge to current standards. The project was originally estimated to take 25 months to complete. Also presented are the actual results through the first 11 months of the project. Percentage Complete 0% 4% 8% 12% 16% 20% 24% 28% 32% 36% 40% 44% 48% 52% 56% 60% 64% 68% 72% 76% 80% 84% 88% 92% 96% 100% Cost ($000) Budget 0 213 471 775 1,125 1,520 1,961 2,447 2,979 3,557 4,180 4,849 5,563 6,323 7,129 7,980 8,877 9,819 10,807 11,841 12,920 14,045 15,215 16,431 17,693 19,000 Actual 0 112 266 464 706 990 1,317 1,688 2,102 2,559 3,059 3,063 4,189 4,819 Months to Reach Budget Actual 0 5 7 8 9 10 11 12 13 14 14 15 16 17 18 18 19 20 20 21 22 22 23 24 24 25 0 1 1 2 3 4 4 5 6 7 8 9 10 11Answer: 5,250,000 Please help me with the solutions. Thank you.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: 0 1 2 3 4 5 Cash flow −$1,300 $470 $570 $580 $360 $160 IRR?
- Five mutually exclusive projects had the following data: V W X Y Z NPV $(3,000) $56,000 $23,000 $14,000 $28,000 IRR 7% 10% 15% 13% 6% Which project is preferred?10. The current project earns $100,000 and has costs of $50,000. A ne project would earn $150,000 and have costs of $75,000. What is the differential cost of the projects? a. $25,000 b. $50,000 c. 0 d. $125,000Cash Payback Period A project has estimated annual net cash flows of $39,500. It is estimated to cost $201,450. Determine the cash payback period. Round your answer to one decimal place.
- You are given the following cash flow information for Project A TV Inflows Year 0 PV Outflows -$150,000.00 1 Project A -$150,000.00 $80,000.00 -$25,000.00 $50,000.00 2 $80,000.00 -$30,000.00 $75,000.00 Totals 3 4 5 6 O 19.33% $75,000.00 Now assume that the project's cost of capital is 16.0 percent, but that its true reinvestment rate is 24.0 percent. Given this information, determine the project's modified internal rate of return (MIRR). Ⓒ 18.56% 5 pts3. 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 000Question #1a) What is a âtransfer price?âb) List and describe 3 main reasons for using transfer prices.Question #2Consider the following information about a potential project:Investment requiredExpected annual project revenueExpected annual project expensesRequired rate of returnCurrent division return on investment$3,000,000$6,000,000$5,550,00011%18%a) Calculate the projectâs return on investment.b) Based solely on ROI, is this project in the firmâs best interests? Why or why not?c) Is this project in the division managerâs best interests? Why or why not?d) Perform DuPont Analysis on this project.e) What is the projectâs residual income?Question #3List and describe five traits that can differentiate a customer that is relatively inexpensive to service from a customer that is relatively expensive to service.Question #4List and describe five actions a firm can take if a customer appears…
- At 10% interest, what is the nearest benefit/cost ratio for the following private sector project: Initial Cost 200,000 Additional costs at the EoY 1-2 30.000 Annual Benefits at the EoY 1-10 90,000 Salvage Value 40,000 Project Life 10 Note: Consider the following equation setup: FW(Bene fits) = Annual Bene fits (F/A, 10%, 10) FW(Costs) = Instial Costs + Additional Costs - (F/A, 10%, 2) (F/P, 10%, 8)- Salvage Value %3D 10% Compound Interest Factors F/P P/F A/F A/P F/A P/A 1 1.100 0.9091 1.0000 1.1000 1.000 0.909 2 1.210 0.8264 0.4762 0.5762 2.100 1.736 3 1.331 0.7513 0.3021 0.4021 3.310 2.487 4. 1.464 0.6830 0.2155 0.3155 4.641 3.170 1.611 0.6209 0.1638 0.2638 6.105 3.791 9. 1.772 0.5645 0.1296 0.2296 7.716 4.355 1.949 0.5132 0.1054 0.2054 9.487 4.868 8. 2.144 0.4665 0.0874 0.1874 11.436 5.335 6. 2.358 0.4241 0.0736 0.1736 13.580 5.759 10 2.594 0.3855 0.0627 0.1627 15.937 6.145 11 2.853 0.3505 0.0540 0.1540 18.531 6.495 12 3.138 0.3186 0.0468 0.1468 21.384 6.814 13 3.452 0.2897 0.0408…Initial Equipment $65,000 Project Life 3 Years Sales $55,000 Variable Costs $25,000 Fixed Costs $ 10,000 Tax rate 26% Cost of Capital 10% Ending Book Value $10,000 Sales Price at Year 3 $5,000 Net Working Capital $10,000 CALCULATE THE INITIAL COSTS, CALCULATE THE OPERATING CASH FLOW, CALCULATE THE TERMINAL NON OPERATING CASH FLOW, CALCULATE THE NPV. please show your work and formulus for the answers