Two married couples of investors are analyzing a project where they acquired the following figures: initial investment $310,000 annual net profit of $130,000 each year for five years; salvage value of assets at the end of the fifth year $160,000. The money contributions for the initial investment were shareholders: 60% MARR 43%, bank A 20%, interest charged by the bank 45%; bank B 20% of the investment and an interest rate for the loan of 49%. Calculate the mixed MARR and determine the economic convenience of the investment by the NPV

Q: Your boss, whose background is in financial planning, is concerned about the company’s highweighted…

A: It is given that the weighted average cost of capital (WACC) of the company is 13 percent and the…

Q: A firm spent $2 million for new equipment that reduces greenhouse gases in their operations. The…

A: (a): The total expenditure of the firm is $2 million and the process helped to save $14,000 in the…

Q: 1. You were offered to buy shares of stock of a newly listed company. You decided to take 300 shares…

A: The given price of the share is Php 1200 per share. Total share purchased =300 So, the money…

Q: Q2) The two projects as part of oil industrial their cash flows in tables belwo: project B: r=8%…

A: Hey, Thankyou for the question, Since you have posted multiple sub parts so as per our norms we will…

Q: Which of the Note: This is a Multiple Answer question. Please select all of the following options…

A: Conventional Cashflow is a series of cashflows which have only one sign change throughout the…

Q: closest to: in 10% per yer 3 5 6 7 8 9 10 11 4 A= $2,000 PO=530,000 C=55000 (Recurring every 5 y…

A: The capitalized cost: The capitalized cost is utilized to get a genuinely precise gauge of the…

Q: Solve the Engineering Economics Problem: Project Feasibility Indicator Which alternative should be…

A: Benefit Cost Ratio refers to the ratio of all the present value of all the benefits that a project…

Q: PW analysis for one project refers to the value of all cash flows converted to a single sum…

A: In the mentioned question we have been asked what actually PW is and do the given statement is true…

Q: Required information A company that makes several different types of skateboards, Jennings Outdoors,…

A: Interest expense (IP) is $1,200,000 per year. Initial received payment (RP) is $19,000,000. Face…

Q: t capitalized for ₱44,000 invested in depreciable assets will earn a uniform, annual income of…

A: Capitalized Cost 44000   Annual Income 22456   Annual Cost 8000   Tax and insurance 3% 1320…

Q: Vilas Company is considering a capital investment of $198,900 in additional productive facilities.…

A: The payback period in capital budgeting implies the time needed to recoup the funds expended in an…

Q: A plant produces 300 units of equipment a month of Php 3,600 each. A unit sells for Php 4,800.  The…

A: The break-even point (BEP) in economics, business—and particularly cost accounting—is the point at…

Q: some compliance issues identified by the auditor-general of south africa and national treasury are…

A: The budget process is a critical component of financial management in municipalities in South…

Q: The data below are estimated for a project study. i = 10% Plan A Initial Investment P 35,000…

A: We need to find the present worth of the to plans and then decide on our recommendation. The…

Q: 20,000 -90,000 50,000 -10,000 2 4 According to the rule of signs, there can be up to three |rate of…

A: *Answer:    Given cash flow i=15%

Q: Q3) For a 12% per year MARR, consider the following two investment projects: Project A Net Cash…

A: We are going to analyse these two project using net present value approach to answe this question.

Q: (10) Which one is among the non-govemment's sources to finance a project (a) Loan (b) grants (c)…

A: There are various sources of finance a project such as equity shares, term loans, venture funding,…

Q: 8-33 The owner of a downtown parking lot has employed a civil engineering consulting firm to advise…

A: PLEASE FIND THE ANSWER BELOW.

Q: 05. Mr. A, an elderly descendant from the Laksam Nabab family, while in need of cash fund handed…

A: Hello Mr. A, I understand your situation as you had set the hold price for the antique clock at a…

Q: A tax exempt municipality is considering the construction of a new municipal waste water treatment…

A: Given  The first or initial cost for alternative A=-$15,361,975 First cost of alternative B…

Q: Use the exact internal rate of return method to determine which of the four independent projects…

A: *Answer:

Q: $30,000 and is considering three possible independent projects. Project A has a present outlay of…

A: *Answer:

Q: Given the financial data for four mutually exclusive alternatives in the table below determine the…

A: The Net Present Value (NPV) is calculated by taking the present value of the expected cash flows…

Q: Given four proposals for funding a new project with a 100M limit on capital funding and the MARR is…

A: External Rate of Return is found out using following steps : => Discount all the cash outflows to…

Q: A large telecom service provider has offered to one of its major industrial customer two alternative…

A: Given that, For Plan P, First cost (FC) = P 5,000,000 Time period (n) = 10 Years Net annual revenue…

Q: Tom, the owner of Burger Palace, determined that the weighted average cost of capital is 8%. He…

A: The MARR should be derived using the risk premium approach. This implies that the project has higher…

Q: a) Use the return on invested capital approach with an investment rate of 14% per year and a…

A: Year Cash Flow 0 3000 1 -2000 2 1000 3 -6000 4 3800

Q: You are faced with making a decision on a large capital investment proposal. The capital investment…

A: Given that; The capital investment amount is $640,000.  Estimated annual revenue at the end of each…

Q: Question 4 An engineer at Suncore Micro, LLC, calculated the present worth of mutually exclusive…

A: The objective of this question is to determine the most profitable project bundle that can be…

Q: A $10,000 mortgage bond that is due in 20 years pays an interest of $250 every three months.  The…

A: The objective of the question is to determine the interest rate of a mortgage bond that pays $250…

Q: How can we consider two investment projects with the different cash flow transactions?

A: The mutually exclusive analysis is the determination of the present worth, equivalent annual worth,…

Q: Navistar Electric issued 1000 debenture bonds 8 years ago with a face value of $5,000 each and a…

A: The present worth of an investment represents the current value of all future cash flows associated…

Q: Based on basic methods of economy studies, a project is acceptable only when its AW, PW, or FW is…

A: In a market, firms and individuals make investments in different types of projects and businesses…

Q: Last year CompanyXA paid a dividend of $2 per share. Use a growth rate of 2% per year and a discount…

A: Dividend paid = 2 $ Growth rate = 2 % Discount rate = 5 % Next dividend = 2 $ * (1 + 2%) = 2.04$

Q: What is the Present Worth (PW) of an investment : Initial Cost - $40,000; Operation and Maintenance…

A: Present Worth refers to the value of a certain investment that is calculated or derived by…

Q: Calculate the annual net benefit from the given project summary. Capital Costs = $43,000; Revenue…

A: we can calculate the annual net benefit by subtracting the cost from revenue as follow-

Q: How many years will it take to double your investment of $ 2000 if it has an interest rate of 6%…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: l property   2)  Tangible property   3)  Intangible p

A: A licensing agreement grants the licensee with the ability for using the intellectual property which…

Q: A prospective venture has the following cash flow profile over a 5-year horizon. What is the…

A: Given, Cash flow profile over a 5-year horizon with Receipts and Disbursements

Q: nvestment, and this will repeat every 20 years thereafter. d plan (Prairie View) has an initial…

A: Introduction and Given Information The CW method will take into the usage of the Present value…

Q: ABC Corporation was able to issue 20-year P10,000,000-face value bonds with interest of 8% per…

A: The effective annual interest rate is the real interest rate on credit since it considers the…

Q: 9) Shin Satellite Corp. issues 10,000 debenture bonds with a face value of $26,000 each and a bond…

A: There are 10000 debenture bonds.The face value is given as $26000 for each bond.The bond interest…

Q: Capitalized cost: Select one: a. is the future sum needed to provide a perpetual series of cash…

A: capitalized cost is a special kind of present worth analysis that chooses between alternatives with…

Q: Connor Designs Company has net cash flows from operating activities of $425,000 and net cash flows…

A: Free cash flow (FCF) is a measure of a company's ability to generate cash from its operations after…

Q: project capitalized for ₱42,000 invested in depreciable assets will earn a uniform, annual income of…

A: Capitalized Cost 42000   Annual Income 20333   Annual Cost 9000   Tax and insurance 4% i.e.…

Q: Investigate sensitivity to decision reversal for the estimate of annual expenses. Express your…

A: In order to fund sensitivity, we need to see how much the percentage increase in expenses. Worth…