T NormalT No Spac. Heading 1Heading 2FontTitleSLParagraphStylesMs. Rahat hails from a business family. She is considering starting a supermarketwith an investment of OMR 100,000. She has provided the following informationabout two possible locations to start the supermarket. Her family had advised toaccept the project which recovers the funds within 3 yearsParticularsSupermarket at Maabela Supermarket at Al Ansab100,000 OMRInitial Investment100,000 OMRCost of capital10%12%Year 140,00060,000Year 250,00040,00040,00020,000Year 3Evaluate the above offers using the investment evaluation techniques mentionedbelow without using Excel and mentioning the steps..: All calculations steps are tobe provideda- Pay-back periodb- Discounted Pay-back periodC- Internal Rate of Return (IRR)d- Modified Internal Rate of Return (MIRR)e- Based on the above analysis and based on the relevant literature reviewabout the techniques used to analyse the projects, which project would yourecommend and why

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Styles Ms. Rahat hails from a business family. She is considering starting a supermarket with an investment of OMR 100,000. She has provided the following information about two possible locations to start the supermarket. Her family had advised to accept the project which recovers the funds within 3 years Particulars Supermarket at Maabela Supermarket at Al Ansab 100,000 OMR Initial Investment 100,000 OMR Cost of capital 10% 12% Year 1 40,000 50,000 40,000 60,000 40,000 20,000 Year 2 Year 3 Evaluate the above offers using the investment evaluation techniques mentioned below without using Excel and mentioning the steps.: All calculations steps are to be provided a- Pay-back period b- Discounted Pay-back period C- Internal Rate of Return (IRR)

Styles Ms. Rahat hails from a business family. She is considering starting a supermarket with an investment of OMR 100,000. She has provided the following information about two possible locations to start the supermarket. Her family had advised to accept the project which recovers the funds within 3 years Particulars Supermarket at Maabela Supermarket at Al Ansab 100,000 OMR Initial Investment 100,000 OMR Cost of capital 10% 12% Year 1 40,000 50,000 40,000 60,000 40,000 20,000 Year 2 Year 3 Evaluate the above offers using the investment evaluation techniques mentioned below without using Excel and mentioning the steps.: All calculations steps are to be provided a- Pay-back period b- Discounted Pay-back period C- Internal Rate of Return (IRR)

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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You are a young personal financial adviser. Molly, one of your clients approached you for consultation about her plan to save aside $450,000 for her child’s higher education in United States 15 years from now. Molly has a saving of $120,000 and is considering different alternative options: Investment 1: Investing that $120,000 in a saving account for 15 years. There are two banks for her choice. Bank A pays a rate of return of 8.5% annually, compounding semi-annually. Bank B pays a rate of return of 8.45 annually, compounding quarterly. Investment 2: Putting exactly an equal amount of money into ANZ Investment Fund at the end of each month for 15 years to get 330 000 she still shorts of now. The fund is offering a rate of return 7% per year, compounding monthly.Calculate the amount of money Molly would accumulate in Investment 1 after 15 years if she chooses Bank B?
Choose the best option in terms of which sets of workers and equipment should be chosen. The project is expected to last in 300 days. Show complete solution Option A. 4 workers with one having ₱ 750 daily rate while the rest with ₱500, To buy equipment with original cost of ₱50 000 and salvage value of ₱10 00 Option B. 3 workers with two having ₱ 750 daily rate while the rest with ₱500, To buy equipment with original cost of ₱20 000 and salvage value of ₱5 000
You currently work at Happy home Construction company The government offered the company 4 projects to undertake in building houses Management is trying to select the best investment from among these alternative independent projects. Each alternative involves an initial outlay of $160,000 and a 10% cost of capital. Management requires that all project investments should be recovered in 4 years. Their cash flows are as follows: Year Kinstown St Christina St Thomp St Bess 1 60,000 40,000 41,000 0 2 50,000 60,000 41,000 60,000 3 40,000 0 41,000 0 4 30,000 40,000 41,000 56,000 5 20,000 20,000 41,000 50,000 6 8,000 60,000 0 80,000 3a. Distinguish between Capital Expenditure and Revenue Expenditure citing,THREE examples of each. b.Explain the time value of money and the role of cost of capital in appraising investments. PLEASE DO QUESTION 3 A-B
The Jeffersons have asked you what would be needed to fund the children’s future college costs. Assume each child will begin college at age 18 and graduate in four years. Assume current costs are $24,000 per year and are expected to increase by 5% per year and investments earn 7%. A. Assuming no existing assets are dedicated to college, what is the annual savings amount required to fund the children’s education? The Jeffersons’ goal is to have an amount at the beginning of the freshman year for each child that is sufficient to fund a serial payment covering the $24,000 of current costs of college adjusted for inflation for each of the four years of college. Please include your calculator keystroke inputs [PV, I/YR, N, FV, and PMT (if needed)] for each step of this calculation. Also include whether any PMTs are in the end mode or the begin mode. B. What would you say to the Jeffersons about their education funding situation? Write a script of a single paragraph as if you…
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do not use excel. manual computation with formula
Intro The local franchise of Jiffy Lube is thinking of buying a new lift for $80,000 that would make it easier to access the oil filter in customers' cars and save labor. The savings would increase over the project's 3-year life, in line with the projected growth of the business: A Part 1 What is the project cash flow in year 3? 0+ decimals Submit Part 2 What is the NPV? 1 Year 2 Cost savings 0+ decimals Submit B The machine is to be linearly depreciated to zero and will have no resale value after 3 years. The company uses a discount rate of 11% and has a tax rate of 21%. 1 20,000 с 2 22,000 D 3 26,400 BAttempt 1/5 BAttempt 1/5
View Policies Current Attempt in Progress You are starting a family pizza parlor and need to buy a motorcycle for delivery orders. You have two models in mind. Model A costs $8,000 and is expected to run for 6 years; Model B is more expensive, with a price of $13,000, and has an expected life of 9 years. The annual maintenance costs are $760 for Model A and $600 for Model B. Assume that the opportunity cost of capital is 9 percent. Calculate equivalent annual costs (EAC) of each models. (Do not round the discount factor. Round intermediate calculations and final answers to 2 decimal places, eg. 15.25.) EAC of Model Ai EAC of Model B is $ You should buy $ Which one should you buy? eTextbook and Media Attempts: 0 of 2 used Submit Apne
You are a young personal financial adviser. Molly, one of your clients approached you for consultation about her plan to save aside $450,000 for her child’s higher education in United States 15 years from now. Molly has a saving of $120,000 and is considering different alternative options: Investment 1: Investing that $120,000 in a saving account for 15 years. There are two banks for her choice. Bank A pays a rate of return of 8.5% annually, compounding semi-annually. Bank B pays a rate of return of 8.45 annually, compounding quarterly. Investment 2: Putting exactly an equal amount of money into ANZ Investment Fund at the end of each month for 15 years to get 330 000 she still shorts of now. The fund is offering a rate of return 7% per year, compounding monthly.How much is the annual interest rate, assuming compounding annually Molly should aim at if she chooses to invest her $120 000 in a saving account to get the $450,000 ready in just 10 years from now?
Question 2 Hounslow Youth (HY), a charity organization, would like to create a scholarship fund that will give the local college £50,000 in every two years. However, it turns out that the maintenance of the scholarship fund (banking fees, etc.) will cost the college £1,000 every year. HY plans to make the first payment as soon as possible and the maintenance fees will be paid at the year-ends. The interest rate is 6% APR with annual compounding. a) What is the Effective Semi-annual Rate? b) What is the Net Present Value of the scholarship fund to the local college?

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