Management of Cullumber, Inc., is considering investing in three independent projects. The costs and the cash flows are given in thefollowing table. The appropriate cost of capital is 13.46 percent.Year01234Project 1-$250,00063,00081,10078,000101,200Project 2-$323,400The IRR of project 1 is152,525168,350105,900Compute the project IRRs. (Round final answers to 2 decimal places, e.g. 15.25%.)Project 3-$500,000197,100197,100197,100197,100Identify the projects that should be accepted.Cullumber should accept project(s)%, project 2 is%, and project 3 is

The internal rate of return (IRR) is the discount rate that gives a future sequence of cash flows a…

Management of Cullumber, Inc., is considering investing in three independent projects. The costs and the cash flows are given in the following table. The appropriate cost of capital is 13.46 percent. Year Project 1 0 1 2 3 4 Project 2 -$250,000 -$323,400 63,000 81,100 78,000 101,200 152,525 The IRR of project 1 is 168,350 105,900 Project 3 -$500,000 197,100 197,100 197,100 197,100 Compute the project IRRs. (Round final answers to 2 decimal places, e.g. 15.25%) %, project 2 is %, and project 3 is

Management of Cullumber, Inc., is considering investing in three independent projects. The costs and the cash flows are given in the following table. The appropriate cost of capital is 13.46 percent. Year Project 1 0 1 2 3 4 Project 2 -$250,000 -$323,400 63,000 81,100 78,000 101,200 152,525 The IRR of project 1 is 168,350 105,900 Project 3 -$500,000 197,100 197,100 197,100 197,100 Compute the project IRRs. (Round final answers to 2 decimal places, e.g. 15.25%) %, project 2 is %, and project 3 is

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Phyllis invested 50000 dollars, a portion earning a simple interest rate of 4 percent per year and the rest earning a rate of 7 percent per year. After one year the total interest earned on these investments was 2900 dollars. How much money did she invest at each rate? At rate 4 percent : At rate 7 percent :
Question 7 For the below net cash flow and i=10%, answer the below questions by matching with the closest answer provided. net cash flow years 0 1 2 100 100 150 200 250 300 350 400 ✓ PW at year 0 for the base amount ✓ PW at year 0 for the gradient amount ✓ Total PW at the yeat 0 3 4 5 6 7 8 A. 620.56 B. 1200.75 C. 1113.61 D.580.14 E. 1153.90 F. 533.34
Present worth
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.
D Question 1 Consider a project that has an initial investment of $100,000 and that returns $36,000 per year for the next 5 years. If the MARR is 12%, is this a good investment? Use interest factor to evaluate the project based on PW. Since PW - $4,671.40 is positive, this is a good investment. Since PW-$29,744.80 is positive, this is a good investment. A revenue of $36,000 per year for five years is not acceptable. This is not a good investment. O Since PW-$56,889 indicates a loss, this investment is not good.
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The cash flow diagram is independent on the point of view. true or false?
Margaret has a project with a $28 000 first cost that returns $5000 per year over its 10-year life. It has a salvage value of $3000 at the end of 10 years. If the MARR is 15 percent, what is the annual worth of this project?
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Economics
7) Margaret has a project with a $28 000 first cost that returns $5000 per year over its 10-year life. It has a salvage value of $3000 at the end of 10 years. If the MARR is 15 percent, what is the present worth of this project?
Choose the best answer and provide a solution. Determine the accumulated amounts after 5 years of P1,000.00 invested at the rate of 10% compounded DAILY A. 1,628.90 B.1,645.31 C.1,648.61 D.1,610.51