Why Annual Worth Evaluation will give value of a single period if you do repeatability by cash flow ?
Repetability of the cash flow, means similar set of cash flows repeat, after the completion of the one project period. In this scenario, when annual worth is calculated, then it becomes the annual worth of the years in one single period. It happens, because it is the uniform annual worth and it remains same for each year. Hence, if a project period is 3 years and there are repetability for the 2 project period or 6 years. Then, uniform annual worth for 3 years period will be same as that of 6 year period.
Why Annual Worth Evaluation will give value of a single period if you do repeatability by...
Compare alternatives A and B with the present worth method if the MARR is 11% per year. Which one would you recommend? Assume repeatability and a study period of 12 years. $25,000 $10,000 at end of year 1 and increasing by $1,000 per year thereafter None Capital Investment Operating Costs $55,000 $5,000 at end of year 1 and increasing by $500 per year thereafter $5,000 every 3 years 12 years $10,000 if just overhauled Overhaul Costs Life 6 years negligible...
7. The equivalent annual w $135,578. If the cash flow in $20.000. what is the value of annual worth of an increasing arithmetie gradient is cash now in year is $30.000 and the gradient amount is value of at an interest rate of 10% per year? [15 marks) G
Compare alternatives A and B with the present worth method if the MARR is 10% per year. Which one would you recommend? Assume repeatability and a study period of 20 years $15,000 $45,000 Capital Investment Operating Costs $4,000 at end of year 1 and increasing by $400 per year thereafter $4,000 every 5 years 20 years $8,000 at end of year 1 and increasing by $800 per year thereafter None Overhaul Costs Life 10 years Salvage Value $8,000 if just...
Problem 03.019 Annual Worth Calculations Find the value of x that makes the equivalent annual worth in years 1 through 9 equal to $700 per year. Use an interest rate of 9% per year. The cash flows in year 0 and year 9 has an unknown value x, and 1 through 8 has an annual worth of $700. The value of x is determined to be $
Compare two alternatives, A and B. on the basis of a present worth evaluation using /= 10% per year and a study period of 8 years. Alternative A B First Cost $-19,000 $-46,000 Annual Operating Cost $-6,000 $-10,000 Overhaul in Year 4 $0 $-3,850 Salvage Value $1,200 $6,200 Life 8 years 4 years The present worth of alternative A is $ and that of alternative B is $ Alternative (Click to select) is selected.
Do you consider penetration testing worth the risks? Why or why not?
ACTIVITY: *Determine the cash value of any business using four corporate evaluation methods. The student will: Corporate evaluation methods *explain why is it important to have a reasonable knowledge of what the firm is worth? *apply the problem data to the four corporate evaluation methods *calculate and compile the results for each method *evaluate and explain the results *determine, prioritize, recommend, and defend the best corporate evaluation method (20 points) Complete the following corporate valuation methods (five) based on the...
Why do Investors and Companies Care about Intrinsic Value? The intrinsic value of a firm is determined by the size, timing, and risk of its expected future free cash flows (FCF). There are two models used to estimate intrinsic values: the discounted dividend model and the corporate valuation model. The discounted cash flow (or DCF) approach describes a method of valuing a project, company, or asset using the concepts of the time value of money. All future cash flows are...
Why evaluation is important, what it can do for health programs and health service providers, what needs to be in place before effective evaluation of health programs can occur. Please give answer in minimum 200 words
What annual interest rate do you need for an investment to be worth $4,345.47 four years in the future with semi-annual compounding if you deposit $3,300 today? Please show ALL work with finance formulas.