Economics Jan, Fran, Nan, and Dan are looking for new investment opportunities. They have each proposed different investment plans with the cash flows shown in the table below. Assume that MARR=12% for all scenarios. Table 2: Cash Flows for Question 3 n O 1 Jan -$150 180 Fran -$100 60 Nan -$600 2,000 Dan $200 -800
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- A company invests $6,250 at the beginning ofa seven-year project. At the end of every year forthe first five years, the project generates $1,550. Atthe end of the sixth year, the project generates nomoney. At the end of the seventh year, the project isterminated. How much must the project generate atthe end of the seventh year to realize 14% return onthe initial investment?Time left 1:29:42 In the following cash flows diagram, Determine the Future Worth at the end of year 12 if the interest rate is 6% 7. $200 $200 $150 $150 $100 $100 3 4 Years Oa $1,445.8 Ob. $1,364 Oc $1,286.8 Od $1,5326 2.What is the present value of this cash flow equal using 6% ? $390,000 investment, year one $115,000 profit, year two $125,000 profit, year three $150,000 profit. ⒸA $25,750, B.-$44,317 C. $345,68 D. $45,450
- 12:42 Expert Q&A Done e bond wi e wth S en and dd 1 y Howuh wod an be wilngt pay r ths bonda5 pr yr y d con te e the intrt and annly to d compunding when p yea The urnt worh ofhend oundt the ) Azero coupon bond will be worth $15,000 when it matures and is redeemed after 13 years. How much would an investor be willing to pay now for this bond if a 3% per year yield is desired? Click the icon to view the Interest and annuity table for discrete compounding when = 3% per year. The current worth of the bond is (Round to the nearest dollar)Year 0 1 3 4 5 6 -Assuming an interest rate of 5%, which three cash flows have the best Net Present Value? (Remember to show your work!): Estimated Response Time for Average Student: 2 minutes) a. Cash Flows C, D, and F b. Cash Flows A, E, and D c. Cash Flows D, E, and F d. Cash Flows D, F, and G e. Cash Flows D, E, and G -Assuming an interest rate of 5%, which three cash flows have the best Equivalent Uniform Annual Worth (EU AW)? (Remember to show your work!): (Estimased Response Time for Average Student: 2 minutes) a. Cash Flows A, D, and G b. Cash Flows C, D, and E c. Cash Flows B, C, and F d. Cash Flows E, F, and G e. Cash Flows C, E, and F B A ($75,000) $75,000) $15,000 $0 $15,000 $0 $15,000 $15,000 $15,000 C ($75,000) D $75,000) $0 $50,000 $0 $25,000 $27,000 $10,000 $15,000 $54,000 $5,000 $105,000 $0 $0 E ($75,000) $5,000 $5,000 $5,000 $5,000 $72,500 $2,500 I F 00) $37,750 $5,000 $0 $0 $5,000 $37,750 G ($75,000) $0 $52,750 $27,750 $0 $0 $10,0001. Find the present value and the accumulated amount at the 10th year with r=4% cpm. quarterly SOK 20K 20K 20K 20%, L0K IOK 10K 10K 10K 10K J0K 1 3 4 6. 8 9. 10 11 12 13 Quarter
- 20. A proposed project will cost $1,400 five (5) years from today. Beginning at the end of year six, $500 in annual benefits will be received, continuing until the end of year nine. What is the project’s present (year 0) worth at MARR = 10%? A. $129.63 B. $147.24 C. $114.87 D. $106.58Time left 0:14:27 A company is considering two machines. Machine X has a first cost of $30,000, AOC of $18,000, and S of $7000 after 4 years. Machine Y will cost $50,000 with an AOC of $16,000 and 5 of $9000 after 6 years. The AW equations for Machine X and Y at 12% interest rates, are: Select one: O a. AWX=-30,000(A/P,12%, 12)-18,000 +7,000(A/F, 12%, 12); AWY= -50,000(A/P, 12%, 12)-16,000+ 9,000(A/F,12%, 12) O b. AWX=-30,000(A/P, 12%, 4) -18,000 +7,000(A/F, 12%6,4); AWY= -50,000(A/P,12%,6)-16,000+ 9,000(A/F,12%,6) OC. AWX=-30,000(A/P, 12%, 24) -18,000 +7,000(A/F,12%,24); AWY -50,000(A/P,12%, 24) -16,000+ 9,000(A/F, 12%,24) O d. AWX=-30,000(A/P, 12 %, 6) -18,000 +7,000(A/F, 12%,6); AWY= -50,000(A/P,12%,6) -16,000+ 9,000(A/F, 12 %,6) Which of the following statements is correct? O a. MARR is set higher than the WACC b. MARR is set by the financial manager of a company. OcA project that is economically justified should have a ROR higher than MARR.3) Find the value of D that results in a negative Equivalent Uniform Annual Worth (EUAW) of $0.00. Assume an interest rate of 10% 1.5D 1 2 3. 4 5 6. $500 A. $57.00 B. $68.00 C. $79.00 D. $86.00
- 2. 3. Problem 7) Given the cash flow diagram, determine the unknown for an interest rate of 10% 500 400 300 200 100 111111 4 5 6 7 8| 6.A new flood control project is expected to involve expenditures for periodic heavy mainte- nance as tabulated below. Note that the first expenditure occurs at EOY 2, with subsequent expenditures at four-year intervals, increasing by 20 percent for each expenditure. Find the equivalent annual cost with i=15 percent per year and noo. %3D EOY Expenditure $250,000 300,000 360,000 6. 10 etc. etc. 2)True or False 1. For any economy study based on our discussions, it is always necessary to determine the profit to evaluate thebetter/best alternative.2. If simple interest is evaluated, then the interest obtained will always be directly proportional to the number of years assuming that a constant interest rate is used throughout these years.