1Required informationPEMEX, Mexico's petroleum corporation, has an estimated budget for oil and gas exploration that includes equipment forthree offshore platforms as shown. Use PW analysis to select the best alternative at a MARR of 15% per year.SkippedPlatformFirst cost, $ millionM &O, $ million per yearSalvage value, $ millionEstimated life, years-300-450-3207520-510-2309020-2905020Select platform X, Y, or Z using tabulated factors.million, the present worth of platform Y is $-million, and the present worth ofThe present worth of platform X is $-platform Z is $-million.The platform selected based on the present worth is (Click to select)

Present worth Present value is the present worth of any sum of money to be received in the future at…

Answered: Required information PEMEX, Mexico's…

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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Question a .A mining company plans to mine a beach for rutile. To do so will cost $14 million up front and then produce cash flows of $7 million per year for five years. At the end of the sixth year the company will incur shut-down and clean-up costs of $6 million. If the cost of capital is 13%, then what is the MIRR for this project? A) -70% B) -90% C) -100% D) -110% Full explain this question and text typing work only We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this line
Calculate the IRR for the picture enclosed
7 independent project proposals from various departments of an enterprise has come. The budget allocated by the management for these projects is 600,000 TL. Current value identify the appropriate projects using the method. (I = 20% will be accepted and the first take p=0.2 for trial. ) Scrap Value (Thousand (Thousand TL) Cost Annual Smooth Useful Project TL) earnings (thousand TL) lifetime (year) 1 200 60 10 100 35 10 3 100 30 10 4 150 46 8. 250 75 10 10 6. 100 45 7 50 19 8.
Harris Corporation has provided the following data concerning an investment project that it is considering: Initial investment Annual cash flow Salvage value at the end of the project Expected life of the project Discount rate $ 160,000 $ 54,000 $ 11,000 O $67,000 O $160,516 O $516 O $(5,776) 4 15 per year years % Use Exhibit 7B-1 and Exhibit 7B-2, to determine the appropriate discount factor(s) using the tables provided. The net present value of the project is closest to:
Chevron Corporation has a capital and exploratory budget for oil and gas production of $19.6 billion in one year. The Upstream Division has a project in Angola for which three offshore platform equipment alternatives are identiﬁed. Use the present worth method to select the best alternative at 12% per year. A B C initial cost -200 -350 -475 annual operating cost -450 -275 -400 ‘Salvage Value’ 75 50 90 life time 20 20 20 Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Required information [The following information applies to the questions displayed below.] Cardinal Company is considering a five-year project that would require a $2,800,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 14%. The project would provide net operating income in each of five years as follows: Sales Variable expenses Contribution margin $ 2,845,000 1,109,000 1,736,000 Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs $ 799,000 Depreciation 560,000 Total fixed expenses 1,359,000 $ 377,000 Net operating income Click here to view Exhibit 7B-1 and Exhibit 7B-2, to determine the appropriate discount factor(s) using table. 6. What is the project's internal rate of return? Project's internal rate of return %
You are considering the following project. What is the NPV of the project? WACC of the project: 0.10 Revenue growth rate: 0.05 Tax rate: 0.40 Revenue for year 1: 13,000 Fixed costs for year 1: 3,000 variable costs (% of revenue): 0.30 project life: 3 years Economic life of equipment: 3 years Cost of equipment: 20,000 Salvage value of equipment: 4,000 Initial investment in net working capital: 2,000
Instructions An evaluation is needed for a sock production project that requires an initial investment of $50,000,000°, of which 80% corresponds to depreciable fixed assets, and 20% to working capital. The unit production cost is $10,000°°, and a unit sale value of $13,500°° is estimated. The market study revealed a potential demand of 20,000 units for the first year. The fixed assets are depreciated straight-line over a useful life of 10 years. Operational expenses are estimated at $4,000,000° for the first year. The fixed costs amount to $10,000,000° for the first year. The following increments are estimated: sales increase by 2% annually, variable unit cost by 3% annually, unit sale price by 3% annually, operational expenses by 6% annually, and fixed costs by 5% annually. The project has a useful life of 5 years. 1. Build the project's cash flow. 2. Calculate the Internal Rate of Return (IRR) and determine if the project is profitable or not, considering an opportunity rate of…
A1
ICB Berhad is looking for projects in the Klang Development Region for additional investments. Two mutually exclusive projects are brought to the attention of the management and the detailed information furnished below: Project A 200,000 Project B 180,000 Cost of equipment (RM) Estimated life 6 years 5 years Scrap value at life end (RM) 20,000 NIL Additional information: Revenue for Project A in the first year is estimated to be RM80,000 and is expected to increase by 10% each year. 1. 2. The annual fixed cost for project A is RM10,500 and project B is RM9,000. 3. Variable costs for each year are expected to be 20% of revenue. 4. The equipment is eligible for 20% initial and 10% annual capital allowance. The current tax rate is 30% and the tax is payable at the end of the following year. The company's cost of capital is 11%. 5. The management accountant calculated the Net Present Value for project B as RM58,501. 6. The present value and Present Value Annuity of RM1 discounted at 11%…
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! Required information An engineer calculated the PW values for four alternatives to develop a remotely controlled vibrations control system for offshore platform applications. The results in the table use a MARR of 14% per year. Alternative Life, n, years PW over n years, $ PW over 6 years, $ PW over 12 years, $ || 3 16.08 26.94 39.21 J 14 31.12 15.78 60.45 K 12 -257.46 -653.29 -257.46 L 6 160 160 160 Determine which alternative(s) should be selected if the projects are independent. Alternative I is (Click to select) ✓ alternative J is (Click to select) (Click to select) ✓ alternative K is (Click to select) ✓ and alternative L is

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