formation, for the plan. First cost in year 0: $816,000,000 Annual operating cost: $7,000,000 in year 1, increasing by 2% per year Major technology upgrades: $18,000,000 every five years, starting seven years MARR= 16.71% Number of passengers per year = 12,000,000 use per year (120,000 passenger alculate the levelized cost for each ticket. he levelized cost for each ticket is $ Round to the nearest cent as needed.)

formation, for the plan. First cost in year 0: $816,000,000 Annual operating cost: $7,000,000 in year 1, increasing by 2% per year Major technology upgrades: $18,000,000 every five years, starting seven years MARR= 16.71% Number of passengers per year = 12,000,000 use per year (120,000 passenger alculate the levelized cost for each ticket. he levelized cost for each ticket is $ Round to the nearest cent as needed.)

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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Compute the project cost. Gross income 1,000,000 Life of project Operating cost Rate of project 500,000 5 years 20% Benefit ratio 1.08 O a. P1,384,543.00 O b. P1,348,543.00 O c. P1,384,534.00 O d. P1,384,453.00
(4) Evaluate the ROI.
Vijay
It is known that a project for the construction of public facilities with estimated costs and benefits of the project is as follows: • 6 year project life. • The applicable discount rate is 10% in the first year and the discount for the first year the second is an increase of 5%. • Expenses incurred only in year 1 and 2, with each Rp. 515,000,000 and Rp. 415 000 000. • Benefits received from year 3 to year 6 respectively Rp. 205,000,000, Rp. 305 000 000, Rp. 405 000 000 and IDR 505,000,000 Please count and explain the Project investment criteria a. Payback Period of Investment criteria b. NPV (net present value) criteria c. IRR (Internal Rate of Return) criteria
Bronze It Tanning Salon expects annual sales of $1,175,000, annual fixed cash outlays are $586,000 a year at each location, variable cash outlays are 12 percent of sales, depreciation is $115,000 per year, and taxes are 32% (of pretax income). Initial outlay for the building is $2,140,000. The company does its analysis based on a 20-year store life. We believe the business can be sold for $580,000 after taxes at the end of its 20 year operating life. 1. Using an 12% required return, what is the net present value of this venture? 2. Please rework the prior problem to determine the net present value level of annual sales volume that is needed to generate a net present value of $0?
I need help figuring out the unit sales, revenues, costs, depreciation and EBIT over time span of 4 years. project economic life: 4 years year 1 unit sales: 3,200 units unit growth 4% year 1 price per unit: $250.00/unit year 1 cost per unit: $185.00/unit inflation rate: 2.5%
A company expects the cost of equipment maintenance to be $5,000 in year one, $5,500 in year two, and amounts increasing by $500 per year through year 10. At an interest rate of 10% per year, the present worth of the maintenance cost is nearest to A.$51,790 B.$42,170 C.$46,660 D.$38,220
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Required information [The following information applies to the questions displayed below] Cardinal Company is considering a five-year project that would require a $2,975,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 14%. The project would provide net operating income in each of five years as follows: Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of- pocket costs $ 735,000 595,000 2. What are the project's annual net cash inflows? $ 2,735,000 1,000,000 1,735,000 Depreciation Total fixed expenses Net operating income Click here to view Exhibit 7B-1 and Exhibit 7B-2. to determine the appropriate discount factor(s) using table. 1,330,000 $ 405,000
Investment cost twenty thousand dollars, annual income (gain) 8000 dollars / year, duration 5 years; salvage value 3000 dollars, annual expenses (maintenance and operating expenses) 4000 dollars / year, the profit rate that the company can be accepted is 15%. Evaluate the investment according to the net future value method.
Accounting Rate of Return Vanderhoort Company invested $10,370,000 in a new product line. The life cycle of the product is projected to be seven years with the following net income stream: $360,000, $360,000, $600,000, $1,080,000, $1,200,000, $2,520,000, and $1,444,000. Required: Calculate the ARR. Enter your answer as a decimal, do not convert to a percent. Round your answer to two decimal places.

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