Determine the FW of the following engineering project when the MARR is 13% per year. Is the project acceptable?Proposal AInvestment cost$10,000Expected lifeMarket (salvage) value6 years- 51,200Annual receiptsS7,000Annual expenses$4.000A negative market value means that there is a net cost to dispose of an asset.Click the icon to view the interest and annuity table for discrete compounding when the MARR is 13% per year.The FW of the following engineering project is S(Round to the nearest dollar.)According to the FW Decision Rule the projectv acceptable. i More InfoDiscrete Compounding; i=13%Unifonm SeriesSiriking,FundFactorTo Find AGiven FSingle PaymentCompoundAmountCapitalRecoveryFactorTo Find AGiven PA/PCompoundAmountFactorPresentWorth FactorTo Find PGiven FPIFPreseritWorth FactorTo Find PGiven 4PIAFactorTo Find FGiven 4FIATo Find FGiven PFIP1.13000.88501.00000.88501.66812.36121.00001.13001.27690.78312.13000.46950.59951.44290.69313.40690.29350.42351.63050.61334.84986,48038.32272.97450.20620.33621.84240.54283.51723.99754.42260.15430.28432.08200.48030.12020.25022.35260.425110.40470.09610.226182.65840.376212.7573479880.07840.20843.00400.332915.41575.13175.42620.06490.1949103.39460.294618.41970.05430.1843PrintDoneZ12 3456 709

Determine the FW of the following engineering project when the MARR is 13% per year. Is the project acceptable? Proposal A Investment cost $10,000 Expected life Market (salvage) value Annual receipts Annual expenses 6 years - $1,200 S7,000 $4,000 *A negative market value means that there is a net cost to dispose of an asset. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 13% per year. The FW of the following engineering project is S (Round to the nearest dollar.) According to the FW Decision Rule the project Vacceptable.

Determine the FW of the following engineering project when the MARR is 13% per year. Is the project acceptable? Proposal A Investment cost $10,000 Expected life Market (salvage) value Annual receipts Annual expenses 6 years - $1,200 S7,000 $4,000 *A negative market value means that there is a net cost to dispose of an asset. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 13% per year. The FW of the following engineering project is S (Round to the nearest dollar.) According to the FW Decision Rule the project Vacceptable.

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

See similar textbooks

Similar questions

Consider the following investment in a piece of land. Purchase price 500,000 Annual maintenance: 5,000 Expected sale price after 8 years: 1,000,000. Determine a) The rate of return (to 1/100 percent) and b) What is the lowest sale price the investor should accept if she wishes to earn a return of 10% after keeping the land for 10 years? Show complete solution pls. No excel computation
Compute the discounted payback statistic for Project C if the appropriate cost of capital is 6 percent and the maximum allowable discounted payback period is three years. Note: Do not round intermediate calculations and round your final answer to 2 decimal places. Project C 0 1 2 3 Time: Cash flow: -$3,000 $1,280 $ 1,080 $ 1,120 Discounted payback period years Should the project be accepted or rejected? 4 $ 700 5 $ 500
Calculate Net Present Value of minitor that costs $ 35,000.00 Amortization period 5 years with savings of 8000 per year with a hurdle rate of 12%, 5%. Which investment is more attractive?
The interest rate is 8%. If all the alternatives have a 12-year useful life and no salvage value, which alternative should be selected?
Compute the discounted payback statistic for Project C if the appropriate cost of capital is 6 percent and the maximum allowable discounted payback period is three years. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Project C Time: 0 1 2 3 4 5 Cash flow: −$2,800 $1,200 $1,020 $1,060 $660 $460 Should the project be accepted or rejected?multiple choice accepted rejected
A mining investment is more likely to generate revenues of $500,000 per year for the next 10 years of service life. However, the investors think that there is a possibility that the revenues could be as high as $800,000 per year or as low $300,000 per year. The investors' MARR is 8% per year. Answer the following two questions: Click the icon to view the interest and annuity table for discrete compounding when i= 8% per month. More Info 1 Calculate the PW based on the optimistic estimate of the net annual revenues. Discrete Compounding; i= 8% ire O A. $3.36 Million Single Payment Compound Amount Uniform Series Compound Amount Factor Sinking Fund Capital Recovery Factor O B. $3.47 Million Present Worth Factor Present Worth Factor O C. $5.37 Million Factor Factor O D. $2.01 Million To Find F To Find P To Find F To Find P To Find A To Find A Given P Given F Given A Given A Given F Given P O E. $3.58 Million F/P PIF FIA PIA A/F A/P 1 1.0800 0.9259 1.0000 0.9259 1.0000 1.0800 2. Calculate…
A firm is considering two alternatives that have no salvage value. At the end of 4 years, another B may be purchased with the same cost, benefits and so forth. a. Construct a choice table for interest rates from 0% to 100%. b. If the MARR is 10%, which alternative should be selected? Item Initial Cost Uniform Annual Benefits Useful Life, in years A -$10,700 2,100 8 B -$5,500 1,800 4
do not round off on intermediate part of solution
Dhofar water is installing new equipment at a cost of 140000 OMR. Expected cash flows from this project over the next three years will be 95000 OMR , 80000 OMR and 65000 OMR. The company's discount rate for such projects is 10 percent. What is the project's discounted payback period? Select one: О а. 1.63 years ОБ. 1.81 уеars О с. 2.82 years O d. None of these О е. 1.44 years
Complete the following using the present value formula or financial calculator. Note: Do not round intermediate calculations. Round your final answer to the nearest cent. Amount desired at end of period $ 20,000 20 years Length of time Rate Compounded 8% Annually Period used Periodic rate % PV of amount desired at end of period
At 6% interest rate, find the capitalized cost of a bridge whose cost is P 300 million and life is 20 years. If the bridge must be partially rebuilt at a cost of P 100 million at the end of each 20 years. P 445,178,192 O P 145,413,221 P 345,307,595 P 245,398,210
Find the Payback period for Oman Lighting company if the initial investment is 12000 OMR and the cash Inflows are as follows: Year 1 =3250 OMR; Year 2 =3500 OMR; Year 3=3750 OMR and Year 4=4000 OMR. Select one: a. None of the options b. 3 years 4 months c. 2 years 8 months d. 1 year 10 months e. 3 years

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS