Ql: The price for obtaining a spherical reactor of 1 m diameter was 2100 $ in 2014 (and the instillation cost is 30% of its price). If it is wanted by an investor to obtain a new one of larger size (the double diameter) this year and to insulate it using one layer of insulation material that was cost 9 $/m' in 2014 (knowing that the cost of workers was 3 $/m² in 2014). How much will be the cost to install this new reactor? M&S Index Year Material Worker Index Index 2014 2021 1490 1510 580 600 320 370

Ql: The price for obtaining a spherical reactor of 1 m diameter was 2100 $ in 2014 (and the instillation cost is 30% of its price). If it is wanted by an investor to obtain a new one of larger size (the double diameter) this year and to insulate it using one layer of insulation material that was cost 9 $/m' in 2014 (knowing that the cost of workers was 3 $/m² in 2014). How much will be the cost to install this new reactor? M&S Index Year Material Worker Index Index 2014 2021 1490 1510 580 600 320 370

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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3. Schultz Company is considering purchasing a machine that would cost $478,800 and have a useful life of 5 years. The machine would reduce cash operating costs by $114,000 per year. The machine would have a salvage value of $6,200. Schultz Company prefers a payback period of 3.5 years or less.Required: a. Compute the payback period for the machine. What does this mean? b. Compute the return on average investment (ROI)
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B) Pakar & Son Sdn Bhd is looking to invest in a new project, with a project life of 4 years. The project involves a new manufacturing equipment that makes inline skate wheels. The marketing department estimates a total sale of 6,000 units each year at a price of RM300 per unit. Variable cost is about 40% from the selling price. Fixed cost is estimated at RM450,000 per year. The new equipment will cost RM1,500,000. The machine will be depreciated to zero over its 6-year economic life using the straight-line method. At the end of year 4, the equipment can be sold at RM650,000. The project also requires an investment of RM525,000 in net working capital at the start and it will be recovered in full at the end of the project's life. The corporate tax rate is 35 percent. The required rate of return for the project is 25%. i) What is the initial cost of this project? ii) Determine the annual cash flow of this project from year 1 to year 4.
Rafieza restaurant is considering the installation of a new processing machine that will cost RM54,000. The cooker has an installation cost of RM1,200. Networking capital of RM 800 is required at the time of installation. The decision will warrant an operating cost of RM8,500. What is the amount of initial outlay for the project?
Webmasters.com has developed a powerful new server that would be used for corporations’ Internet activities. It would cost $10 million at Year 0 to buy the equipment necessary to manufacture the server. The project would require net working capital at the beginning of each year in an amount equal to 10% of the year’s projected sales; for example, NWC0 10% Sales1. The servers would sell for $24,000 per unit, and Webmasters believes that variable costs would amount to $17,500 per unit. After Year 1, the sales price and variable costs will increase at the inflation rate of 3%. The company’s non-variable costs would be $1 million in Year 1 and would increase with inflation. The server project would have a life of 4 years. If the project is undertaken, it must be continued for the entire 4 years. Also, the project’s returns are expected to be highly correlated with returns on the firm’s other assets. The firm believes it could sell 1,000 units per year. The equipment would be depreciated…
Abhaliya
You are working for a company which wishes you to evaluate the economic feasibility of producing alloy wheels for the automobile market. The important financial parameters for the project are as follows:Capacity: 10,000 wheels per yearVariable Cost: R1,500 per wheelFixed Cost: R20 million per yearCapital Cost: R30 millionSalvage Value: 0Selling Price: R5,000 per wheelDepreciation Period: 10 years (straight-line depreciation)Tax Rate: 40%Interest Rate: 12% (payable on the capital loan; assume the capital itself is not repaid)Minimum Acceptable Rate of Return (MARR): 15%The plant will be constructed in one year, but you will need to borrow the full capital cost at the beginning of year one.Answer the following questions:A. What is the annual revenue?B. What is the annual tax payment?C. What is the NPV for the project?D. What is the IRR?E. Will the company agree to invest in this project? Why?
DLR Rheosystems makes high performance rotational viscometers capable of steady shear and yield stress testing in a rugged, compact footprint. How much could the company afford to spend now on new equipment in lieu of spending Php 200 000 one year from now and Php 300 000 three years from now, if the company uses an interest rate of 15 % per year? a.) Php 236 715.33 b.) Php 371 176.91 c.) Php 288 621.15 d.) Php 345 440.06
Please help me
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