Time Value of MoneySystem Analysis and Design System Analysis and Design - Assignment 2Year 0 Year 1Year 2Year 3Year 4 Year 5TotalsNet Economic Bene so$600,000 $600,000$600,000$600,000$600,000Discount Rate (9%)PV of Benefits$0$550,458$505,008NPV of all BENEFITSS$0$550,458$1,055,466One-time COSTS$400,000Recurring COSTS $ODiscount Rate (9%)PV of Recurring Costs$200,000$200,000$200,000$200,000$200,000$0$183,486NPV of All COSTS$400,000 $583,486Overall NPVOverall ROI

Information Provided: Discount Rate = 9%

Discount Rate (9%) PV of Benefits $550,458 $0 $505,008 NPV of all BENEFITS $0 $550,458 $1,055,466 One-time COSTS $400,000 Recurring COSTS șo Discount Rate (9%) V of Recurring Costs $200,000 $200,000 $200,000 $200,000 $200,000 $0 $183,486 NPV of All COSTS $400,000 $583,486 Dverall NPV Dverall ROI

Discount Rate (9%) PV of Benefits $550,458 $0 $505,008 NPV of all BENEFITS $0 $550,458 $1,055,466 One-time COSTS $400,000 Recurring COSTS șo Discount Rate (9%) V of Recurring Costs $200,000 $200,000 $200,000 $200,000 $200,000 $0 $183,486 NPV of All COSTS $400,000 $583,486 Dverall NPV Dverall ROI

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

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solve a,b and c given in the image provided.
Two alternatives are being considered for a certain project. B $15,000 $3,800 Initial Cost Uniform annual benefits Useful life A $10,000 $2,500 O a. 1.37 O b. 1.27 O c. 1.07 O d. 1.17 6 6 If money is worth 12% annually, compute the benefit ratio of the difference between the alternatives.
Q2C) Use Incremental benefit cost analysis method to compare between the following three projects. Use i=9%/yr.: Project Project A Project C Project D Item Annual Benefits to $10,000 $6,000 $8,000 pablic Annual Disbenefits $2000 $3,000 $1,500 to public Capital Investment $20,000 $15,000 $14,000 Annual Operational $1,000 $1,800 $2.000 Cost Useful Life 10 years 12 years 15 years
Use Payback analysis at 15% to select a system for the following system System 1 system 2 First cost $ 15,000 13,000 2.000 (Year 1 -5) NCF, $ per year 3,000 3,000 (year 6- 14) Maximum 14 life years Find the no-return payback for system one A.5 Years v Find the no-return payback for system two? B. 6 years v Which system has the better payback period? C. system 1 v which system has longer payback period? D. system 2 E. 4 years F. 7 years
1. Given four different alternatives as shown in table below. Data В Initial Cost $10,000 $1,850 $18,000 $3,500 $25,000 $4,500 12.4% $30,000 $5,000 Annual Benefit IRR 13.1% 14.36% 10.56% Required: a) The best alternative using Incremental IRR, for a MARR of 11%, n=10 yrs. b) Use any method to determine how much longer than 10 years does your choice from part "a" remain as the best alternative (when does the choice for part "a" is no longer the best alternative)?
Question 9-43 A project has the following costs and benefits. What is the payback period? Year Costs Benefits 0 $65,000 1-2 15,000 3 5,000 $50,000 4-10 $10,000 in each year
i need the answer quickly
Consider the following information about a project: PROJECT YEAR O YEAR 1 YEAR 2 YEAR 3 YEAR 4 COSTS $160,000 $43,000 $50,000 $50,000 $64,000 BENEFITS $0 $400,000 $400, 000 $500,000 $500,000 a) Calculate the NPV assuming 10% discount rate b) Determine in which year will be the payback c) Calculate (ROI)? Provide the detail answer for your calculation.
NPV profiles WACC (Dollars in Millions) Plan A Plan B Project NPV Calculations: NPVA NPVB Project IRR Calculations: IRRA IRRB NPV Profiles: Discount Rates 0% 5% 10% 15% 20% 22% 25% 11.00% NPVA $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 0 -$40.00 Formulas #N/A #N/A -$11.00 $2.47 $2.47 $2.47 #N/A #N/A NPVB 1 $6.39 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 2 3 $6.39 $6.39 4 $6.39 $2.47 5 6 7 $6.39 $6.39 $6.39 $2.47 $2.47 8 9 $6.39 $6.39 $2.47 $2.47 $2.47 10 $6.39 $2.47 11 $6.39 12 $6.39 13 $6.39 $2.47 $2.47 $2.47 14 $6.39 15 $6.39 $2.47 $2.47 16 $6.39 $6.39 $2.47 17 39 $2.47
Plz do exactly like they ask in question i attached everything here
3. What if Nguyen Hospital wants to know why IRR is not being used for the investment analysis? Calculate the IRR for each project. Round the discount factor to three decimal places. Round the IRR to the nearest whole percentage value (for example, 10.6% rounds to 11% and should be entered as "11" in the answer box.) Clearlook: Goodview: Discount factor IRR 16 16 % % Why IRR is not suitable for choosing among these mutually exclusive investments. IRR does not reveal the absolute dollar contribution that each project makes
NPV Versus Internal Rate of Return Keating Hospital is considering two different low-field MRI systems: the Clearlook System and the Goodview System. The projected annual revenues, annual costs, capital outlays, and project life for each system (in after-tax cash flows) are as follows: Clearlook Goodview Annual $720,000 $900,000 revenues Annual operating 445,000 655,000 costs System 900,000 800,000 investment Project life 5 years 5 years Assume that the cost of capital for the company is 8 percent. The present value tables provided in Exhibit 19B.1 and Exhibit 19B.2 must be used to solve the following problems. Required: 1. Calculate the NPV for the Clearlook System. 2. Calculate the NPV for the Goodview System. Which MRI system would be chosen? 3. What if Keating Hospital wants to know why IRR is not being used for the investment analysis? Calculate the IRR for each project. Round the discount factor to three decimal places. Round the IRR to the nearest whole percentage value (for…

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