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

Don't treat uniform or gradient payments as single payment and answer whatever you can please

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

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)

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% IRR

Consider the following cash flow profile and assume MARR is 10%/year. EOY NCF 0 Part a 1 2 3 4 5 6 -$80 $12 $12 $12 $12 $12 $12 Click here to access the TVM Factor Table Calculator Determine the ERR for this project. %

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