The capital project fund cost at 20% of the governmental funds is known as ________________ a. Special fund b. Non major fund c. Major fund d. None of the options
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A: The internal rate of return(IRR) is used to determine the investment's profitability. It is a…
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A: Annual worth distributes present worth into equivalent uniform value over its useful life.
Q: Compute the NPV statistic for Project Y if the appropriate cost of capital is 13 percent. (Negative…
A: NPV = Present value of cash inflows - Present value of cash outflows
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Q: Compute the NPV statistic for Project Y if the appropriate cost of capital is 13 percent. (Negative…
A: Difference between the present value of project’s cash inflows and cash outflows is known as net…
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A: Profitability index = (NPV of cashflow+ Initial investment)/Initial investment
Q: payback
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A: PAYBACK PERIOD Payback Period is one of the important Capital Budgeting Technique. Payback Period is…
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A: Cost of Capital = r = 9%Cash Flow for year 0 = cf0 = -$1200Cash Flow for year 1 = cf1 = $430Cash…
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A: Profitability Index refers to the technique used to measure the ratio between the present value of…
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Q: None
A: Answer image:Select project 1, 3 and 5Total net present value = $1,800,000
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A: Step 1: Step 2: Step 3: Step 4:
Q: do not provide AI based solution.
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A: Net Present Value (NPV): NPV is a financial metric used to assess the profitability of an investment…
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A: Cost of Capital = 7% Year Cash Flow 0 -2000 1 750 2 780 3 720 4 500 5 300
Q: Quantitative Problem: Bellinger Industries is considering two projects for inclusion in its capital…
A: NPV is a sum of cash inflows from an investment project over the particular periods.
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A: Internal Rate of Return (IRR) is the discount rate at which the present value of cash inflows equals…
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Q: purposes. The following proposals and ascertained profitability indexes have Question.8. Parth Ltd.…
A:
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A: Given, Cost of Capital = 13% Time Cash Flow 0 -$11,200 1 $5,430 2 $4,280 3 $1,620 4…
Q: Compute the IRR statistic for Project F. The appropriate cost of capital is 12 percent. Note: Do not…
A: IRR is the rate at which Net Present value of project is zero.If IRR is more than cost of capital,…
Q: Compute the NPV statistic for Project Y if the appropriate cost of capital is 11 percent. (Negative…
A: The difference between the current value of cash inflows and outflow of cash over a period of time…
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A: Step 1: Compute the profitability index for each project.PI is a financial metric used to evaluate…
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A: Net working capital (NWC) is the difference between a company's current assets and current…
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- For the following two projects, which statement is correct. Year 0 1 2 Playhouse -30 16 23 Fort -80 45 48 O choose Fort when the cost of capital is 4% O choose Fort because its IRR is higher choose Fort when the cost of capital is 6% O choose Playhouse because its IRR is higherCompute the NPV statistic for Project Y if the appropriate cost of capital is 12 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.) Project Y Time: 0 1 2 Cash flow: -$8,000 $3,350 $4,180 NPV Should the project be accepted or rejected? O accepted O rejected 4 3 $1,520 $300Compute the IRR statistic for Project F. The appropriate cost of capital is 12 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Project F Time: Cash flow: IRR 0 -$11,000 1 $3,350 O accepted O rejected % 2 $4,180 Should the project be accepted or rejected? 3 $1,520 4 $2,000
- . Net Cash Flows and NPVs for different discount rate for projects S and L are given below Net Cash Flows ($) Discount Rate (%) NPVS NPVL Year (t) Project S Project L 0% $800 $1100 0 $(3000) $(3000) 5 554.32 1 1500 400 10 161.33 2 1200 900 15 (90.74) (259.24) 3 800 1300 20 (309.03) (565.97) 4 300 1500 h) If projects are independent (not mutually exclusive), which project(s) would you accept? i) at 5% ii) at 15%(Capital rationing) The Cowboy Hat Company of Stillwater, Oklahoma, is considering seven capital investment proposals for which the total funds available are limited to a maximum of $11 million. The projects are independent and have the costs and profitability indexes associated with them shown in the popup window: a. Under strict capital rationing, which projects should be selected? b. What problems are there with capital rationing? MCKEN a. Under strict capital rationing, which projects should be selected? (Select the best choice below.) OA. Projects C and F B. Projects D and G OC. Projects C and D OD. Projects D, F and OE. Projects C, D and G Data table (Click on the following icon in order to copy its contents into a spreadsheet.) PROFITABILITY INDEX COST $3,000,000 1.15 2,000,000 1.06 1.34 1.36 6,000,000 5,000,000 3,000,000 6,000,000 1.16 1.25 4,000,000 1.12 PROJECT A ABCDEFG C Bool 1 X Question ViewerO Redmond Company is considering investing in one of the following two projects: (PV of $1 and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Year 1 2 3 4 Total Annual Cash Project A $ 2,040 3,040 3,040 1,040 $ 9,160 Inflows Project B $ 4,040 2,040 2,040 1,040 $ 9,160 Required: a. Which project is more desirable strictly in terms of cash inflows? b. Compute the present value of each project's cash inflows assuming the company's required rate of return is 12%. c. What is the maximum amount Redmond should be willing to pay for each project? d. Suppose each project costs $7,120. Which project(s) should be accepted? Required A Complete this question by entering your answers in the tabs below. Required B Required C Required D Which project is more desirable strictly in terms of cash inflows? More desirable strictly in terms of cash inflows
- Determine the best alternatives for a government project with the following data: PROJECT A B C ANNUAL BENEFIT P250,000.00 P320,000.00 P350,000.00 ANNUAL COSTS P100,000.00 P135,000.00 p180,000.00 B/C RATIO 2.5 2.37 1.94 What is the best Project and its incremental ratio? a. A = 1.2 b. A = 2 c. B = 2.0 d. B = 1.18NoneMilitary Jargon Industries Inc. is considering allocating a limited amount of capital investment funds among four proposals. The amount of proposed investment, estimated income from operations, and net cash flow for each proposal are as follows: ProjectName Bravo Tango Uniform Victor Investment $880,008 Investment $2,770,865 Investment $1,566,680 Investment $918,346 Year Income fromOperations Net Cash Flows Income fromOperations Net Cash Flows Income fromOperations Net Cash Flows Income fromOperations Net Cash Flows 1 $96,000 $240,000 $294,500 $950,000 $176,000 $400,000 $108,000 $380,000 2 96,500 240,000 294,775 950,000 176,000 400,000 108,000 380,000 3 97,000 240,000 295,050 950,000 176,000 400,000 108,000 380,000 4 97,500 240,000 295,325 950,000 176,000 400,000 108,000 380,000 5 98,000 240,000 295,600 950,000 176,000 400,000 108,000 380,000 Total $485,000 $1,200,000 $1,475,250 $4,750,000 $880,000 $2,000,000 $540,000 $1,900,000 Present Value of $1 at…
- Perit Industries has $100,000 to invest. The company is trying to decide between two alternative uses ofthe funds. The alternatives are:Project A Project BCost of equipment required ....................... $100,000 $0Working capital investment required ......... $0 $100,000Annual cash inflows .................................. $21,000 $16,000Salvage value of equipment in six years ... $8,000 $0Life of the project ...................................... 6 years 6 yearsThe working capital needed for project B will be released at the end of six years for investment elsewhere.Perit Industries’ discount rate is 14%.Required:(Ignore income taxes.) Which investment alternative (if either) would you recommend that the companyaccept? Show all computations using the net present value format. Prepare separate computations for eachproject.Amster corporation has not yet decided on its required rate of return for use in evaluation of capital budgeting projects for the current year. This lack of information prohibits Amster from calculating a project’s AARR NPV IRR ---------- --------- -------- No No No Yes Yes Yes No Yes Yes No Yes No Yes No YesRequired information [The following information applies to the questions displayed below.] The following capital expenditure projects have been proposed for management's consideration at Scott Inc. for the upcoming budget year: Use Table 6-4 and Table 6-5. (Use appropriate factor(s) from the tables provided. Round the PV factors to 4 decimals.) Project Year(s) B D $ (25,000) $(50,000) 16,000 16,000 16,000 16,000 16,000 $ (50,000) 5,000 10,000 15,000 20,000 25,000 Initial investment $(25,000) 5,000 5,000 5,000 5,000 5,000 5,000 $ 1,081 $(100,000) 30,000 30,000 Amount of net cash return 1 2 3. 10,000 10,000 10,000 6,000 15,000 15,000 15,000 15,000 2,942 4 5 Per year 6-10 NPV (14% discount rate) 2$ $ Present value ratio 1.04 Required: a. Calculate the net present value of projects indicated by a minus sign.) and D, using as the cost of capital for Scott Inc. (Negative amounts should be Project Net Present Value B D