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Problem 5 The following table shows the receipts and disbursements for a given venture. Determine the...
The following table shows the receipts and disbursements for a given venture. Determine the present worth...
The following table shows the receipts and disbursements for a given venture. Determine the present worth of the receipts and disbursements of the venture for a 15% interest rate. Is the venture profitable? End of the Year Receipts ($) Disbursements ($) 20,000 AWNO 4,000 6,000 5,000 5,000 12,000 1,000
The following table shows the receipts and disbursements for a given venture. Determine the present worth...
The following table shows the receipts and disbursements for a given venture. Determine the present worth of the receipts and disbursements of the venture for a 15% interest rate. Is the venture profitable? End of the Year Receipts ($) Disbursements ($) 20,000 AWNO 4,000 6,000 5,000 5,000 12,000 1,000
Determine Value of Investment Nu Things, Inc., is considering investing in a business venture with the...
Determine Value of Investment
Nu Things, Inc., is considering investing in a business venture with the following anticipated cash flow results: EOY Cash Flow 0 $70,000 $20,000 $19,000 $18,000 $17,000 $16,000 $15,000 $14,000 $13,000 $12,000 $11,000 $10,000 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 Assume MARR is 20 percent per year. Based on an internal rate of return analysis:
You are given three investment alternatives to analyze. The cash flows from these three investments are...
You are given three investment alternatives to analyze. The cash flows from these three investments are as follows: Investment End 0f Year A B C 1 $3,000 $1,000 $6,000 2 4,000 1,000 6,000 3 5,000 1,000 (6,000) 4 (6,000) 1,000 (6,000) 5 6,000 5,000 16,000 a. What is the present value of investment A at an annual discount rate of 15 percent? b. What is the present value of investment B at an annual discount rate of 15 percent? c. ...
please help.. Problem 1 For the following table (a) Draw the cash flow diagram Receipts Year...
please help..
Problem 1 For the following table (a) Draw the cash flow diagram Receipts Year 0 1 2 Disbursements $50,000 $15,000 $15,000 2 S5.000 System Initial Costs Produced Products Produced Products Preventive Maintance Produced Products Corrective Maintance Produced Products Preventive Maintance Produced Products Salvage value $15,000 $15,000 $15,000 $5,000 4 5 5 6 $15,000 $25,000 Problem 2 $1000 is deposited in a savinga account that pays 6% annual interest, and no money is withdrawn for three years. Most nearly,...
5-73 Given the following data, use present worth analysis to find the best alternative, A, B, or C $10,000 15,000...
5-73 Given the following data, use present worth analysis to find the best alternative, A, B, or C $10,000 15,000 $12,000 Initial cost Annual benefit 6,000 10,000 5,000 Salvage value 1,0002,000 3,000 Useful life 4 years 3 years 2 years Use an analysis period of 12 years and 15% interest.
5-73 Given the following data, use present worth analysis to find the best alternative, A, B, or C $10,000 15,000 $12,000 Initial cost Annual benefit 6,000 10,000 5,000 Salvage value...
3. Following table shows sales and cost information for the preceding month for the Discount Drug...
3. Following table shows sales and cost information for the preceding month for the Discount Drug Company and its three major product lines – drugs, cosmetics, and housewares. Among the fixed expenses, Utilities, Depreciation, Rent, and General Administrative expenses are overhead costs that are allocated across the segments and would continue even if the company drops a segment. Using cost-benefit analysis, show whether the company should continue or discontinue the “Houseware” segment. (10 points) Product Line Total Drugs Cosmetics Houseware...
Two types of buildings are being considered for a new project. The following table provides the estimates prepared for...
Two types of buildings are being considered for a new project.
The following table provides the estimates prepared for each type
of building. if the interest rate is 9%, determine the net present
worth for both buildings A amd B.
description. building A. Building B.
initial. $60,000. $200,000
estimated life. 15 years. 25 years
salvage value. $0. $50,000
annual disbursememnt. $11,000. $5,000
(20 pts) Two types of buildings are being considered for a new project. The following table provides the...
Q6. The estimated annual cash flows of an investment project along with associated probabilities are given...
Q6. The estimated annual cash flows of an investment project along with associated probabilities are given below. Determine the expected equivalent worth of this cash flow series at an interest rate of 12% per year use the PW method). EOY 0 Probability = 0.45 -$10,000 $4,200 $3,250 $6,000 Probability = 0.25 -$20,000 $3,500 $3,500 $5,000 Probability = 0.3 -$12,000 $3,100 $3,100 $3,100 2-6 7
PROBLEM 4 (20 pts) Determine which of the following alternatives, if any, is the best by...
PROBLEM 4 (20 pts) Determine which of the following alternatives, if any, is the best by using the following methods and assuming a 9% interest rate (and 9% minimum attractive rate of return). You may find that this problem is most easily solved by setting it up in Excel. (a) Present worth (b) Future worth (c) Annual cost (d) Rate of return Year WN-o -$16,000 +6,000 +6,000 +6,000 $19,000 +8,000 +8,000 +8,000 -$24,000 +10,000 +10,000 +10,000
The following table shows the receipts and disbursements for a given venture. Determine the present worth of the receipts and disbursements of the venture for a 15% interest rate. Is the venture profitable? End of the Year Receipts ($) Disbursements ($) 20,000 AWNO 4,000 6,000 5,000 5,000 12,000 1,000
The following table shows the receipts and disbursements for a given venture. Determine the present worth of the receipts and disbursements of the venture for a 15% interest rate. Is the venture profitable? End of the Year Receipts ($) Disbursements ($) 20,000 AWNO 4,000 6,000 5,000 5,000 12,000 1,000
Determine Value of Investment
Nu Things, Inc., is considering investing in a business venture with the following anticipated cash flow results: EOY Cash Flow 0 $70,000 $20,000 $19,000 $18,000 $17,000 $16,000 $15,000 $14,000 $13,000 $12,000 $11,000 $10,000 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 Assume MARR is 20 percent per year. Based on an internal rate of return analysis:
please help..
Problem 1 For the following table (a) Draw the cash flow diagram Receipts Year 0 1 2 Disbursements $50,000 $15,000 $15,000 2 S5.000 System Initial Costs Produced Products Produced Products Preventive Maintance Produced Products Corrective Maintance Produced Products Preventive Maintance Produced Products Salvage value $15,000 $15,000 $15,000 $5,000 4 5 5 6 $15,000 $25,000 Problem 2 $1000 is deposited in a savinga account that pays 6% annual interest, and no money is withdrawn for three years. Most nearly,...
5-73 Given the following data, use present worth analysis to find the best alternative, A, B, or C $10,000 15,000 $12,000 Initial cost Annual benefit 6,000 10,000 5,000 Salvage value 1,0002,000 3,000 Useful life 4 years 3 years 2 years Use an analysis period of 12 years and 15% interest.
5-73 Given the following data, use present worth analysis to find the best alternative, A, B, or C $10,000 15,000 $12,000 Initial cost Annual benefit 6,000 10,000 5,000 Salvage value...
Two types of buildings are being considered for a new project.
The following table provides the estimates prepared for each type
of building. if the interest rate is 9%, determine the net present
worth for both buildings A amd B.
description. building A. Building B.
initial. $60,000. $200,000
estimated life. 15 years. 25 years
salvage value. $0. $50,000
annual disbursememnt. $11,000. $5,000
(20 pts) Two types of buildings are being considered for a new project. The following table provides the...
Q6. The estimated annual cash flows of an investment project along with associated probabilities are given below. Determine the expected equivalent worth of this cash flow series at an interest rate of 12% per year use the PW method). EOY 0 Probability = 0.45 -$10,000 $4,200 $3,250 $6,000 Probability = 0.25 -$20,000 $3,500 $3,500 $5,000 Probability = 0.3 -$12,000 $3,100 $3,100 $3,100 2-6 7
PROBLEM 4 (20 pts) Determine which of the following alternatives, if any, is the best by using the following methods and assuming a 9% interest rate (and 9% minimum attractive rate of return). You may find that this problem is most easily solved by setting it up in Excel. (a) Present worth (b) Future worth (c) Annual cost (d) Rate of return Year WN-o -$16,000 +6,000 +6,000 +6,000 $19,000 +8,000 +8,000 +8,000 -$24,000 +10,000 +10,000 +10,000
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