What is the annual equivalent worth of a project where (a) the initial investment is$50,000; (b) will have revenues of $8,000 per year; (c) annual cost of operation andmaintenance of $1,200 and (d) a residual or salvage value of $2,000 after 15years? Assume rate of return is 8%.A. $-41,200B. $13,438C. $6,800D. $288E. -$712F. $3,600

Annual equivalent is one method of capital budgeting based on time value of money and is used for…

What is the annual equivalent worth of a project where (a) the initial investmen $50,000; (b) will have revenues of $8,000 per year; (c) annual cost of operation maintenance of $1,200 and (d) a residual or salvage value of $2,000 after 15 years? Assume rate of return is 8%. OA. $-41,200 O B. $13,438

What is the annual equivalent worth of a project where (a) the initial investmen $50,000; (b) will have revenues of $8,000 per year; (c) annual cost of operation maintenance of $1,200 and (d) a residual or salvage value of $2,000 after 15 years? Assume rate of return is 8%. OA. $-41,200 O B. $13,438

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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Average Rate of Return Determine the average rate of return for a project that is estimated to yield total income of $149,280 over three years, has a cost of $559,800, and has a $62,200 residual value. Round to the nearest whole number. %
Alternative X has a first cost of $30,000, an operating cost of $9,000 per year, and a $5,000 salvage value after 5 years. Alternative Y will cost $45,000 at nO with an operating cost of $4,000 per year after that and a salvage value of $7,000 after 5 years. At an MARR of 12% per year, what is the present worth far alternative X2 $49,606 $58,777 $59,606 -$32,443
The expected average rate of return for a proposed investment of $652,000 in a fixed asset, with a useful life of 4 years, straight-line depreciation, no residual value, and an expected total net income of $241,000 for the 4 years, is: a. 13.90% b. 9.24% c. 36.96% d. 18.48%
24
The equivalent annual worth of alternative A over an infinite time period is closest to:a. $-25,000b. $-27,200c. $-31,600d. $-37,100
The equivalent annual worth of alternative A is closest to:a. $-25,130b. $-37,100c. $-41,500d. $-42,900
The expected average rate of return for a proposed investment of $786,000 in a fixed asset, with a useful life of 4 years, straight-line depreciation, no residual value, and an expected total net income of $282,000 for the 4 years, is (round to two decimal points). a.35.88% b.8.97% c.13.90% d.17.94%
The expected average rate of return for a proposed investment of $6,250,000 in a fixed asset, using straight-line depreciation, a useful life of 20 years, no residual value, and an expected total income of $12,500,000 over the 20 years, is (round to two decimal places) a.40.00% b.20.00% c.10.00% d.1.00%
answer an discuss pls
Average Rate of Return Determine the average rate of return for a project that is estimated to yield total income of $467,480 over four years, has a cost of $725,400, and has a $80,600 residual value. Round to the nearest whole number.
The expected average rate of return for a proposed investment of $4,860,000 in a fixed asset, using straight-line depreciation, a useful life of 20 years, no residual value, and an expected total income of $9,720,000 over the 20 years, is (round to two decimal places) a.1.00% b.20.00% c.40.00% d.10.00%
3:Consider the following financial data for a project. 2- Find the (ROR) for the project.. We jus المصرر AP 1 = 10) b- If the the expense will increase by 10%, find the annual revenue that will make (POR-10%) Initial investment 18 000 CU Annual revenue 5000 CU Annual expense 3000 CU Salvage value 4500 CU Project life 12 YEARS

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