The table below lists the costs and benefits of five mutually exclusive projects.
Project |
Costs |
Benefits |
A |
9 |
12 |
B |
6 |
5 |
C |
3 |
4 |
D |
9 |
11 |
E |
4 |
6 |
Project |
BCR |
A |
|
B |
|
C |
|
D |
|
E |
The preferred project is Project ___________
a). BCR = Discounted value of benefits/ discounted value of costs
BCRA = 12 / 9 = 1.33
BCRB = 5 / 6 = 0.83
BCRC = 4 / 3 = 1.33
BCRD = 11 / 9 = 1.22
BCRE = 6 / 4 = 1.50
b). The preferred project is Project "E", as its BCR is highest.
The table below lists the costs and benefits of five mutually exclusive projects. Project Costs Benefits...
Exercise 2: Choosing Among Projects (40 points) Three mutually exclusive projects are being considered for a remote river valley: Project R, a recreational facility, has estimated benefits of $10 million and costs of $8 million; project F, a forest preserve with some recreational facilities, has estimated benefits of $13 million and costs of $10 million; project W. a wilderness area with restricted public access, has estimated benefits of $5 million and costs of $1 million. In addition, a road could...
From the data shown in Table 2 and Table 3 for six mutually exclusive projects, determine which project, if any, should be selected. (20 points) Table 2 Project ID Annual cost, S per year B/C ratio (Alternative vs. DN)1.231.120.87 0.970.711.10 8,00025,00015,00032,00017,00020,000 Table 3 Selected Incremental B/C ratios A versus B-1.07 A versus C = 0.46 A versus F 1.02 B versus D 0.43 B versus E 2.00 B versus F-1.20 C versus D 1.06 C versus F = 1.80
Question 3 (10 marks) a) Six mutually exclusive projects A-F are being considered by a company. They have been ordered by first costs so that project A has the lowest first cost, and F the highest. The table below provides information on the IRR and incremental IRR of each investment. For example, the IRR of C is 11 % ; the incremental IRR going from A to C is 13 % and the incremental IRR from B to C is...
IRR—Mutually exclusive projects Bell Manufacturing is attempting to choose the better of two mutually exclusive projects for expanding the firm's warehouse capacity. The relevant cash flows for the projects are shown in the following table: . The firm's cost of capital is 12%. a. Calculate the IRR for each of the projects. Assess the acceptability of each project on the basis of the IRRs. b. Which project is preferred? 0 Data Table a. The internal rate of return (IRR) of...
IRR-Mutually exclusive projects Bell Manufacturing is attempting to choose the better of two mutually exclusive projects for expanding the firm's warehouse capacity. The relevant cash flows for the projects are shown in the following table: B . The firm's cost of capital is 13%. a. Calculate the IRR for each of the projects. Assess the acceptability of each project on the basis of the IRRs. b. Which project is preferred? a. The internal rate of return (IRR) of project X...
Projects A and B are mutually exclusive. Project A costs $10,000 and is expected to generate cash inflows of $4,000 for 4 years. Project B costs $10,000 and is expected to generate a single cash flow in year 4 of $20,000. The cost of capital is 17.5%. What is the NPV of the project you should accept? Group of answer choices $865.73 $492.49 $3,911.49 $354.94
Need cash flow diagram
04) Three mutually exclusive alternative are being considered Initial Cost Benefit at the end of the first Year Uniform Annual Benefits at end of subsequent years Useful Life in years $500 $200 $100 $400 $200 $125 $300 $200 $100 At the end of its useful life, an alternative is not replaced. If MARR is 10%, which alternatives should be selected? a) Based on the payback period? b) Based on benefit-cost ratio analysis c) Benefit/Costs Analysis using...
IRR: Mutually exclusive projects Bell Manufacturing is attempting to choose the better of two mutually exclusive projects for expanding the firm's warehouse capac ity. The relevant cash flows for the projects are shown in the following table. The firm's cost of capital is 15%. Initial investment (CF) Year (1) Project X Project Y $500,000 $325,000 Cash inflows (CF) $100,000 $140,000 120,000 120,000 150,000 95,000 190,000 70,000 250,000 50,000 a. Calculate the IRR to the nearest whole percent for each of...
Consider the two mutually exclusive investment projects given
in the table below for which MARR=11%. On the basis of the IRR
criterion, which project would be selected under an infinite
planning horizon with project repeatability likely?
The rate of return on the incremental investment is ?%
Homework: HW #7 Save Score: 0 of 1 pt 10 of 10 (8 complete) HW Score: 78.33%, 7.83 of 10 pts Problem 7-56 (algorithmic) Question Help Consider the two mutually exclusive investment projects given...
Projects are mutually exclusive. The cost of capital is 9.16%. Which project or projects will be rejected based on the IRR? Project Initial Outlay IRR -500 9.15% -120 7.99% O A. Neither O B. Project A O C. Project B D. Both