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 5 percent, what is the payback period of this project?
Q: Nabil is considering buying a house while he is at university. The house costs $200 000 today.…
A: Given : Initial cost=$200,000 Time=5 years or 12*5=60 months MARR compounded monthly=6% or…
Q: A city is spending $19.5 million on a new sewage system. The expected life of the system is 30…
A: It is common on very large projects to calculate the Capitalized Cost of the project. This technique…
Q: 5. A city that is attempting to attract a professional football team is planning to build a new…
A: Answer is given below
Q: Compare the following alternatives using a method of your choice. Rate 3.5% per year compounded…
A: For Alternative A:- Initial cost= $2,500,000 Maintenance cost= $75,000 Benefits= $450,000 Time= 12…
Q: Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards…
A: Present worth is the idea that expresses that a measure of cash today is worth more than that…
Q: Zetterberg Builders is given two options for making payments on a brush hog. Find the value of X…
A: here we calculate the present value of the both series and equate them and calculate the value of X…
Q: A process for producing the mosquito repellant Deet has an initial investment of $200,000 with…
A: cash flow diagram:
Q: RING ECONOMICS Bawal Gumamit ng Excel( Don't use Excel) A small company purchased now for 1.15M…
A: Initial Cost = 115000000 Loose 75,000 for the first 4 years Additional Investment at Year 4 =…
Q: You bought the latest iPhone 13 for your online selling business for 94000. With this , your online…
A: Given information Initial purchase cost=94000 Annual income=1000 N=7 MARR=8% Salvage Value=14000
Q: oday, you have $30,000 to invest Two investment atematives are available to you. One would require…
A: Alternatives can measure up based on their future worths by utilizing similar suppositions and…
Q: Compute for the Annual Worth of MEA1 and explain. Compute using the Annual Worth formula and WITHOUT…
A: r= 12%
Q: Doak Corp. is evaluating a project with the following cash flows: Year Cash Flow -$16,000 7,100…
A: Discounting approach
Q: (LG 5.3) Fantastic Footwear can invest in one of two different automated clicker cutters. The first,…
A: The internal rate of return (IRR) is a measurement utilized in the monetary investigation to gauge…
Q: please solve with formulas like (F/P, 5% , n) not with the excell. A.3. A sanitary sewer can be…
A: Introduction: The minimum acceptable rate of return, also known as the hurdle rate, is the lowest…
Q: Margaret has a project with a $28 000 first cost that returns $5000 per year over its 10-year life.…
A: Given Information in Question MARR (I) = 5%,Project Life (N) = 10 yearsInitial Cost = 28,000Annual…
Q: What is the accumulated value of a payment of P12,500.00 at the end of each year for 9 years with…
A: Payment of P12,500 at the end of each year for 9 years. The interest rate is 5% compounded…
Q: Two year ago, you acquired a 10 year $1000 par value bond at 12% YTM. Recently you sold this bond at…
A:
Q: A company is considering two machines. Machine X has a first cost of $30,000, AOC of $18,000, and 5…
A: When comparing options, the AW method is commonly used. All earnings and expenses are converted into…
Q: Nabil is considering buying a house while he is at university. The house costs $200 000 today.…
A: Given : Initial cost=$200,000 Time=5 years or 12*5=60 months MARR compounded monthly=6% or…
Q: l company is consi pment Data concerning the three best Ful life of the equipment is 20 years and…
A: Internal rate of return is a strategy for working out a venture's pace of return. The term interior…
Q: A business needs an immediate capital of 145,000. If the annual operating maintenance cost of the…
A: Given capital = 145000 Annual maintained cost = 90000 Annual rate of interest = 15 %
Q: A firm is considering which of twodevices to install to reduce costs. Both devices have useful lives…
A: Annual Worth is described as the identical standardized yearly benefit over a project’s life cycle…
Q: a. Monthly disbursement. b. Income taxes. c. MIRR. d. None of the above. 5. is established by the…
A: 4. The answer is - d. None of the above
Q: wo project studies for the construction of an engineering building are under consideration. On one…
A: Purpose 1 Purpose 2 Initial Cost 6,50,000 7,20,000 Annual Cost 1800 2000 Salvage value…
Q: You bought the latest IPhone 13 for your online selling business for Php 83,000.00. With this, your…
A: Given information Initial purchase cost=php83000.00 Annual income=Php 1000.00 Salvage value=Php…
Q: Margeaux needs P231,000 right now. She has agreed to take out a discount loan from bank and repay it…
A: Given information, Principal amount (P): P231,000 Interest rate (r): 8% Time period (t): 2 To…
Q: A cash flow sequence has a receipt of $20.000 today, followed by a disbursement of $17,000 at the…
A: Cash flow is a word that refers to the net amount of cash and cash equivalents that enters and exits…
Q: An electric cooperative is considering the use of a conicrete electric pole in the expansion of its…
A: Given, Creosoted wooden poles Concrete electric pole First Cost 12,000 18,000 Salvage Value…
Q: nvestment, and this will repeat every 20 years thereafter. d plan (Prairie View) has an initial…
A: Introduction and Given Information The CW method will take into the usage of the Present value…
Q: A company must invest in one of two alternatives. Alternative A Alternative B Initial Cost $712,623…
A:
Q: Given the following data, if MARR-20% what is the Future Worth
A: * SOLUTION :- * OPTION A (- $152000) is the correct answer.
Q: Determine which option, if any, should be chosen based on net present worth using a 8% interest…
A: Introduction Data ( Initial cost and annual benefit) related to two alternative such as alternative…
Q: What is the Future worth for the following cash flow diagram? If the MARR is 10%, is this a good…
A: Future worth:- It is the value of money at a certain time which is invested at a certain rate of…
Q: A plant is interested in acquiring a machine to produce a new product. Three altematives, A. B. and…
A: A B C Investment Cost 20800 34000 16000 Annual cash flows 10000 9200 10900 Salvage value…
Q: A proposed engineering project requires an initial investment of P850 000.00 and yearly expenses of…
A: Given: Initial cost = P850000 Yearly expense = P50 000.00 Estimated revenue is P235 000.00
Q: 9. Margaret has a project with a $28 000 first cost that returns $5000 per year over its 10-year…
A: Project cost = $28000 Per year returns = $5000 Time = 10 years Interest rate = 15% Salvage value =…
Q: Kim has $35057 to invest for 10 years. She has the following options: [A]term deposit at 5%…
A: One of the most important aspects of diversification is the inclusion of a wide range of…
Q: A professional footy player and his agent are evaluating three contract options to play in the…
A: One of the methods used in analyzing the profitability of a project is calculating the net present…
Q: A$108,000.00, 6-year-old loader caught fire on a project. The insurance company agreed to pay…
A: Given:FV=$108,000r=5%n=6
Q: The present worth of an alternative is zero. What do we know about the value of the future worth?…
A: Annual worth refers to the equivalent annual value of a cash flow. In some instances, cash flows…
Q: Solve this problem in Excel. The following two alternatives are mutually exclusive. (a) Which one…
A: Ordinary Above average Initial Cost 38,000 35,000 Annual Benefits 9,400 9,000 Life 5 6…
Q: You want to buy a new car and use it for 3 years. You have 2 options as presented in the Table…
A: According to question, given that two option firstly to buy a car or rent a car. Now we can answer…
Q: e of the equipment. The initial mainténančé čóst he initial maintenance cost $2,856. Using an…
A: Future value (FV) is the value of a current asset at a future date based on an assumed rate of…
Q: please answer all three they go together 5 points The cash flows for three mutually exclusive…
A: Choice Alt-A Alt B Alt C Initial Cost -15000 -27000 -24000 Annual Benefit 4500 7600 6500 RoR…
Q: Match the correct answers based on the cash flow diagram shown below: 0 1 2 3 4 5 6 7 $50 $50 $50…
A: Note:- Since we can only answer one question at a time, we'll answer the first one. Please repost…
Q: You deposit $5000 into an account that will grow to $14,930 in 6 years. Your rate of return on this…
A: Answer: Given, Deposit value = $5000 Final value = $14,930 Years = 6 Formula to be used: Final…
Step by step
Solved in 2 steps
- 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?You are the boss of a consulting firm. One of your clients has brought to you a new project. The client s asking for an initial investment of $35,000. The project will return $5,000 for the next 4 years. If the company has a MARR set at 12%, what method would you use to evaluate this project? O Present Worth Method O Annual Worth Method O Future Worth Method O Internal Return Rate O External Return RateK Most likely estimates for a project are as follows. MARR Useful life Initial investment Receipts - Expenses (R-E) Determine whether the statement "This project (based upon the most likely estimates) is profitable." is true or false. Click the icon to view the relationship between the PW and the percent change in parameter. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 15per year. Choose the correct choice below. False True 15% per year 4 years $3,500 $1,600/year TUB
- Question 4 A local company is considering in investing in new, more productive equipment Data concerning the three best aternatives are show below. The useful life of the equipment is 20 years and MARR =9K What is the incremental return on the first incremental pair (ahen andered by increasing investment) RRI Ars What is the incremental IRR on the second pair? Ars Which alternative would you select? Ans. X B C Initial S66.000.00 $55,000.00 $23.500.00 $17,32000 investment $7.830.00 Annual net $6.093.00 $3.177.00 $165300 income Salvage value $4.500.00 $3.23200 $1.73a0 1237% S8.230.00 10.40% 7.465 9.35% IRRYou are the boss of a consulting firm. One of your clients has brought to you a new project. The client s asking for an initial investment of $35,000. The project will return $5,000 for the next 4 years. If the company has a MARR set at 12%, what method would you use to evaluate this project? O Present Worth Method O Annual Worth Method O Future Worth Method O Internal Return Rate O External Return Rate question 2 you are a consultant at Brinkley & co .you are responsible for evaluating projects introduced by surrounding engineering firms. the current project you are evaluating requires an initial investment of $35,000 and that returns $5000 for the next 1O years. if the MARR is 12% what is this a good investment?Question 3 A project with the following costs are under consideration to determine its profitability. Using the IRR comparison, and an annual MARR of 10% compounded semiannually, determine if the project should be executed First cost $45,000 Semiannual operating cost $10,000 Semiannual income $20,000 Salvage value $20,000 Life in years 4 years Oa. IRR = 17% semiannual Ob. IRR= 18.7% semiannual O IRR = 16.9% semiannual Od. IRR 15.3% semiannual
- Retainer 0 1 Expenses 2 Revenue N Years How much can you afford to spend on the first year expenses on a project with the above cash flow?, given; Your MARR is 10.00%, the client has given you a retainer of $5,700, annual revenues are expected to be $2,750, the external rate of return required for this project is 19.5% and the entire project will last 8 years. (Round your answer to the nearest penny)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.Need Asap Illustrate the cashflow diagram and compute for the payback period for a project with the following characteristics, if the minimum attractive rate of return (MARR) is 10%? First Cost $20,000 Annual Benefits $8,000 Annual Maintenance $2,000 in year, then increasing by $500 per year Salvage Value $2,000 Useful Life10 years
- A. Using AW, determine whether this proposal is acceptable. B. What is the ERR of this proposal? Is it acceptable? C. What is the IRR of this proposal? Is it acceptable? Show the cash flow diagram and complete solution. Do not use excel please. Thank you.Question 2 Determine the better of the two alternatives using present worth analysis. Use an interest rate of 8%. Document your solution in a spreadsheet that will be uploaded at the end of the quiz. Enter your numerical calculations as numbers only, rounded to three significant figures. Initial Cost Annual Benefit Salvage Value Useful Life MARR Alternative X Alternative Y $12,500 $8,900 $6,800 $2,000 $5,000 $8,900 3years 2 years 8% • Present worth of Alternative X: $ • Present worth of Alternative Y: $ • Recommendation (enter X for Alternative X, Y for Alternative Y):The following mutually exclusive investment alternatives have been presented to you. The life of all alternatives is 10 years. Using a MARR of 12%, choose the preferred alternative. Choose the correct answer below. Capital investment Annual expenses Annual revenues Market value at EOY 10 IRR Click the icon to view the interest and annuity table for discrete compounding when /= 12% per year. OA. Alternative A OB. Alternative E OC. Alternative C OD. Alternative B E. Alternative D OF. Do Nothing A 8 C D $55,000 $90,000 $40,000 $30,000 30,000 40,000 26,000 15,000 35,000 48,000 52,000 37,000 27,000 45,000 10,000 15,000 11,000 10,000 15,000 ??? 7.4% 25.4% 39.0% 9.2% E $70,000 GEREED 4