Question 9-43 A project has the following costs and benefits. What is the payback period? Year Costs Benefits 0 $65,000 1-2 15,000 3 5,000 $50,000 4-10 $10,000 in each year
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![Question 9-43 A project has the following costs and benefits. What is the payback period?
Year Costs
Benefits
0
$65,000
1-2 15,000
3
5,000
$50,000
4-10
$10,000 in each year](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9f86b8fc-f814-427d-9177-57fe17fa4745%2F93047de7-f1df-48ed-8f7f-f542064231aa%2F2xnu1j_processed.jpeg&w=3840&q=75)
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- 5 b. A project has the following costs and benefits. What is the payback period (Be exact to 1 decimal place)? Year 0 1-3 4 5-10 Cost 30,000 15,000 each year 7,000 Benefits 12,000 each year 3,000 11,000 each year1-What is the payback period for each project? Project A Project B years years 2.What is the NPV for each project? Project A Project B 3. What is the IRR for each project? Project A Project B % %Compute the project cost. Gross income 1,000,000 Life of project Operating cost Rate of project 500,000 5 years 20% Benefit ratio 1.08 O a. P1,384,543.00 O b. P1,348,543.00 O c. P1,384,534.00 O d. P1,384,453.00
- Consider the following information about a project: Calculate the NPV assuming 10% discount rate Determine in which year will be the payback Calculate (ROI)?1. An ICT project has the following characteristics: annual costs are committed at the beginning of each year, and these are the only costs during the year. Cost at the beginning of year Value (KSh.) 1 250,000 2 300,000 650,000 4 450,000 5 400,000 Total 2,050,000 It is anticipated that when the project is completed at the end of year 5 it will generate an income of KSh. 3,200,000. What would be the internal rate of return (IRR)? Use the shown discount table. Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 20% 25% 30% 0943 0917 0.842 0.833 1 0.962 0952 0.935 0.926 0.909 0.901 0.893 0.885 0877 0.870 0.769 0.800 0.640 2 0.925 0.907 0.890 0.873 0.857 0.826 0.812 0.797 0.783 0.769 0.675 0.592 0.756 0.694 0.592 0.751 0.683 0.693 0.613 0.543 0.480 3 0.889 0.855 0.864 0.823 0.840 0.792 0.816 0.763 0.794 0.735 0.772 0.708 0.731 0.659 0.712 0.636 0.658 0.572 0.579 0.512 0.410 0.455 0.350 0.482 5 0.784 0.746 0.711 0.497 0.432 0.376 0.327 0.284 0.269 0.207 0.159 0.123 0.094 0.073 0.822 0.747…Time Value of MoneySystem Analysis and Design
- 7Payback Period – What are the Payback Periods of Projects E, F. G and H? Assume all cash flows are evenly spread throughout the year. If the cut-off period is three years, which projects do you accept? Projects E H. Cost ($60,000) ($220,000) ($145,000) ($100,000) $10,000 $40.000 $20,000 $30,000 $10,000 $30,000 $35,000 $30,000 $40,000 $30,000 $30,000 $30,000 4. $120,000 $20.000 $30,000 $20,000 $200,000 $200,000 $20,000 $10,000 $10,000 $200,000 $20,000 S0 Project F Payback Period is: Accept or Reject Choose. Project G Payback Period is: Accept or Reject Choose. Project H Payback Period is: Accept or Reject Choose. Project E Payback Period is: Accept or Reject Choose.What’s the EAS equivalent annual series for project A?
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