PW of Project A is $100,000 PW of Project B is $150,000 PW of Project C...
c. If the total capital investment budget is $150,000 , which
alternative should be selected ?
d.If the total capital investment budget available is $200,000 ,
which alternative should be selected ( if the alternatives are
independent ) ?
Four mutually exclusive alternatives are being evaluated, and their costs and revenues are itemized below. a. If the MARR is 15% per year and the analysis period is 12 years, use the PW method to determine which alternatives are economically acceptable...
JC Warehouse Corporation has estimated the cash flows of Projects A, B, and C as follows. YearProject AlphaProject BetaProject Delta0-$100,000-$200,000-$100,000170,000130,00075,000270,000130,00060,000 Suppose the company requires a 12 percent return on investment.1.1 Calculate the payback period for each of the three projects.1.2 Calculate the NPV for each of the three projects.1.3 Calculate the profitability index for each of the three projects.1.4 Suppose these three projects are independent and the company has an unlimited amount of funds. If the company makes decision based...
Consider four projects, which you expect to generate the following cash flows: Year Project A Project B Project C Project D 0 (200,000) (2,000) (200,000) (200,000) 1 210,000 18,000 100,000 90,000 2 (100,000 is for project c & d ONLY) 100,000 100,000 3 100,000 115,000 , Your required return on all of the investments is 8%. For each project estimate the Payback Period, Internal Rate...
Project S has a cost of $10,000 and is expected to produce benefits (cash flows) of $3,500 per year for 5 years. Project L costs $25,000 and is expected to produce cash flows of $8,000 per year for 5 years. a. Calculate the two projects' NPVS, assuming a cost of capital of 14%. Round your answers to the nearest cent Project S Project L Which project would be selected, assuming they are mutually exclusive? -Select b. Calculate the two projects'...
If the projects were independent, which project(s) would be
accepted?
a) Neither
b) Project A
c) Project B
d) Project A and B
If the projects were mutually exclusive, which project(s) would
be accepted?
a)Neither
b) Project A
c) Project B
d) Project A and B
Quantitative Problem: Bellinger Industries is considering two projects for inclusion in its capital budget, and you have been asked to do the analysis. Both projects' after-tax cash flows are shown on the time line...
QUESTION 1 Star Industries is considering three alternative projects for the company's investment. The cash flows for three independent projects are as follows: Year 1 Project A ($50,000) $10,000 $15,000 $20,000 $25,000 $30,000 Project B ($100,000) $25,000 $25,000 $25,000 $25,000 $25,000 Project C ($450,000) $200,000 $200,000 $200,000 a) If the discount rate for all three projects is 9.5 percent, calculate the profitability index (PI) of these three projects. Which project will be accepted if the projects are mutually exclusive? b)...
QUESTION 6 A program manager is examining several solution alternatives for a service project --so the decisions ARE MUTUALLY EXCLUSIVE. Which project(s) should be selected if the interest rate is 15967 A. PW(1596) = $3,000 B. PW(1596) = $50,000 C.PW(1596) = $0.50 D.PW(1596) = 0 E. PW(1596) - $100,000
Capital Budgeting Methods Project S has a cost of $9,000 and is expected to produce benefits (cash flows) of $2,700 per year for 5 years. Project L costs $26,000 and is expected to produce cash flows of $7,100 per year for 5 years. Calculate the two projects' NPVs, assuming a cost of capital of 10%. Do not round intermediate calculations. Round your answers to the nearest cent. Project S: $ Project L: $ Which project would be selected, assuming they...
When will the conventional payback method and discounted payback method yield the same result? A. Always B. Never C. If and only if the interest (discount) rate for the discounted payback method is much lower than the conventional method. D. No conclusions can be drawn based on the statement. E. When the interest rate is zero. Two mutually exclusive project alternatives are being considered, where both project lives are shorter than the infinite project analysis period. The first alternative has...
uestion 3 Using PW Analysis, for mutually exclusive projects, more than one project can be selected O True O False stion 7 Compare the machines shown below on the basis of their capitalized cost. Use i-10% per year Machine 1 20,000 9000 4000 Machine 2 First cost,S Annual cost,/year Salvage value, $ Life, years -100,000 -7000 Infinite A.-20000(A/P 1096.3)-9000+4000WF,1096,3) B. $-15832.40 C. $-170,000 D. 1 E. $-180,000 F. 2 G. S-166,540 Equation for AW1- Answer 2 decimals) + Selection-
uestion...