The following table contains a summary of how a project's balance is expected to change over its 5year service life at 10% interest.End of PeriodProject Balance-$1,000-1,5006001390041,5002,0005Which of the following statements is incorrect?Select one:a. The net future of the project at 10% interest is $2,000b. The required additional investment at the end of period 1 is $500c. The net present worth of the project at 10% interest is $1,242d. Within 2 years, the company will recover all its investments and the cost of funds(interest) from the project

Answered: Image /qna-images/answer/b886d481-c731-4b22-be61-0ac335ec9f16.jpg

The following table contains a summary of how a project's balance is expected to change over its 5 year service life at 10% interest. End of Period Project Balance -$1,000 -1,500 600 1 2 3 900 4 1,500 2,000 5 Which of the following statements is incorrect? Select one: O a. The net future of the project at 10% interest is $2,000 b. The required additional investment at the end of period 1 is $500 c. The net present worth of the project at 10% interest is $1,242 d. Within 2 years, the company will recover all its investments and the cost of funds (interest) from the project

The following table contains a summary of how a project's balance is expected to change over its 5 year service life at 10% interest. End of Period Project Balance -$1,000 -1,500 600 1 2 3 900 4 1,500 2,000 5 Which of the following statements is incorrect? Select one: O a. The net future of the project at 10% interest is $2,000 b. The required additional investment at the end of period 1 is $500 c. The net present worth of the project at 10% interest is $1,242 d. Within 2 years, the company will recover all its investments and the cost of funds (interest) from the project

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

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.
D3
Typed plxxxxx
The concept of present worth allows engineers to convert costs and benefits to an equivalent value at a defined point in time Select one: True False In linear series, the base amount was $500, and increased $100 per period up to 6 periods; the amount of G at the end of the first period is: Select one: a. zero b. $500 c. $600 d. $700 Three factors are involved in the equivalence of sums of money. These are capital investment, time and interest rate. Select one: O True False
The Michner Corporation is trying to choose between the following two mutually exclusive design projects: Year Cash Flow (1) Cash Flow (II) 0 -$ 71,000 -$ 17,300 1 33,000 9,350 2 33,000 9,350 3 33,000 9,350 a-1.If the required return is 12 percent, what is the profitability index for both projects? (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) Project I Project II a- If the company applies the profitability index decision rule, which project should the 2. firm accept? ○ Project I ○ Project II b- What is the NPV for both projects? (A negative answer should be indicated by a 1. minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Two mutually exclusive projects are under consideration: Year Project A Project B -$5,200 -$7,500 1 2,800 1,000 2 2,800 2,500 3 2,800 4,000 4 2,800 5,500 5 2,800 7,000 Which project should be selected if the simple payback method is used to make the determination? Not enough information B; its payback period is longer O A; its payback period is shorter
Maria Bakery Company is considering two investments, both of which cost $8,000. The cash flows are as follows: Year 1 2 3 b.) $14,029 & $18,071 a.) 1 year & 1 year a.) What is the payback period for Project A & Project B? b.) What is the net present value (NPV) for Project A & Project B? Assume a cost of capital of 10%. Select the correct answers for parts (a) and (b). b.) none listed Project Cash Flows Project A $12,000 8,000 6,000 b.) $18,071 & $13,029 b.) $14,029 & $19,071 a.) none listed a.) 0.5 years & 0.8 years a.) 0.7 years & 0.8 years Project B $10,000 6,000 16,000
H5.
PLS HELP ASAP ON BOTH
A machine with an initial purchase price of $29100 has a useful life of 10 years. The usage of this machine is forecasted to bring us the savings in the table below. At an interest rate of 0% how many years will it take to payback the investment?
can u explain how did they get this digit, use excel and pls pic the formula
If Dr. Smith buys a machine for $5,000 as is able to improve the earnings of her practice by $2,000 a year for five years, and then can sell the machine for $600 as scrap. What is the IRR?