Given the following information, find the optimal indefinite plan. MARR = 10%. ND* = 3, Nc* = 3 AECD* = 4800 AECC: = 5100 The marginal costs (MC) for the defender and challenger for given years are provided below n=1 n=2 n=3 n=4 n=5 n=6 n=7 n=8 MC Def 4990 5050 5260 5500 5900 6440 MC, Ch 5080 5200 5400 5600 O Gio, 4).G. 2). O Go, 3).(j, 4) O Go. 4).(j, 3). O io. 4).(j, 4).. O Go, 3).(j, 3) None of the above

Given the following information, find the optimal indefinite plan. MARR = 10%. ND* = 3, Nc* = 3 AECD* = 4800 AECC: = 5100 The marginal costs (MC) for the defender and challenger for given years are provided below n=1 n=2 n=3 n=4 n=5 n=6 n=7 n=8 MC Def 4990 5050 5260 5500 5900 6440 MC, Ch 5080 5200 5400 5600 O Gio, 4).G. 2). O Go, 3).(j, 4) O Go. 4).(j, 3). O io. 4).(j, 4).. O Go, 3).(j, 3) None of the above

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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Determine which of the following alternatives is the most efficient and which is the most profitable using a method of your choice. Rate 5% per year. + Item Year A B Construction Cost -300 -200 1 30 20 2 45 45 3 56 40 4 65 50 Benefit 5 70 25 6 45 7 80 35 55 30
Phoenix Sky Harbor Airport is considering the following two ME revenue-based projects. Using rate of return analysis and assuming a MARR of 10%, Which alternative should be selected? Cash Flow (Project A) Cash Flow (Project B) First Cost, $ -120,000 -300,000 Annual Cost, S/year -60,000 -40,000 Annual revenue, S/year 80,000 90,000 Salvage Value, S 5,000 10,000 Life, years 10 10
3. Use Expected NPVand PVR analysis for a minimum rate of return of 20.0% to evaluate the economic potential of buying and developing the rights to a new process with the following estimated costs, revenues, and success probabilities. The process rights would cost $100,000 at time zero, and it is considered 100% certain that an experimental development pilot plan work will be done one year later for a cost of $500,000. There is a 60.0% probability that the experimental development results will look good enough to take the project to production for a $400,000 capital cost at year one. If the experimental development results are unsatisfactory, a pilot plan abandonment cost of $40,000 will be incurred at year 1. If the project is taken to production, it is estimated there will be a 50.0% probability of generating production that will give $450,000 per year net positive cash flow for years 2 through 10, a 35.0% probability of generating $300,000 per year net positive cash flow for years 2…
Assume that your company is planning to implement a new information system to improve its operations. For this purpose, the company top management is evaluating two information systems project proposals. The costs and benefits details for the two proposals are shown in the following tables. (The marginal value of money is 15% per year) Proposal A Year Costs Benefit 0 25000 0 15000 100000 2 6000 150000 3 7000 200000 Proposal B Year Costs Benefit 0 52000 0 16000 200000 2 8000 250000 3 11000 300000 Evaluate the two proposals and determine the better by using the following: 1. Payback 1 2. Net present value (NPV) 3. Return on investment (ROI)
Any suggestions? Thanks for the help! Given the data for three different alternatives in the table below, determine the best alternative using the incremental rate of return (∆RoR) analysis. MARR =9%. A B C First cost $15,000 $25,000 $20,000 O &M Cost/ year 1,600 400 900 Benefit/year 8,000 13,000 9,000 Salvage value 3,000 6,000 4,600 Life in years 4 4 4 1. The better alternative between the first increment is ________________. 2. The better alternative between the second increment is ___________________.
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A company is looking at five different potential projects, but it can only do one of them. Which project should the company select? For this question, use the following information: Project A B D E Initial Investment -3,300 -6,500 -5,300 -7,000 -5,500 Annual Benefit 650 1,200 950 1,250 1,000 Salvage Value 150 425 300 1,000 200 Useful life 10 10 10 10 10 IRR 14.99% 13.51% 12.74% 13.26% 12.93% E-A C-A В-А D-A D-B Delta IRR 9.68% 8.88% 11.97% 11.78% 10.90% C-E B-E D-E В-С D-C Delta IRR 18.90% 16.44% 14.29% 16.79% 14.71% Which project should be selected if MARR is 10% (mutually exclusive)? D OA Oc OB
I need the answer in 15 minutes, please, and I want it in clear writing. Greetings
You have been asked to evaluate two alternatives, X and Y, that may increase plant capacity for manufacturing high-pressure hydraulic hoses. The parameters associated with each alternative have been estimated. Which one should be selected on the basis of a present worth comparison at an interest rate of 13% per year? Why is yours the correct choice? Alternative First Cost X $-45,000 Maintenance cost, per $-9000 Year Salvage Value $1,000 Life 5 years Y $-55,000 $-4000 $6,500 5 years The present worth of alternative X is $ 13888 and that of alternative Y is $ 44459.4 Alternative X is selected by the company.
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do not use microsoft excel
Evaluate the NPV for a green building with the following cost and savings data. Use a discount rate equal to the current market rate of return (mid-March 2020) - 7% annually. Show gross and net PV calculations (ROI not necessary): a. Incremental costs for achieving LEED credits: $50,000 b. Year 1 savings: $12,550 c. Year 2 savings: $12,100 d. Year 3 savings: $11,900 e. Year 4 savings: $11,750 f. Year 5 savings: $11,550

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