Consider a project with a capital investment of $47,600, useful life of 9 years, annual revenue...
Consider a project with a capital investment of $47,600, useful life of 9 years, annual revenue of $1,720, and salvage value of $5067 at the end of its useful life. The MARR is 20%. Compute the AW (annual worth) of the project.
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Consider a project with a capital investment of $47,600, useful
life of 9 years, annual revenue...
Consider an alternative with the following cash flows. Capital Investment Revenues Annual Expenses Market Value Useful...
Consider an alternative with the following cash flows. Capital Investment Revenues Annual Expenses Market Value Useful Life MARR = € $45,000 $5000 at the end of the first year increasing by $2000 per year for the next 9 years $2000 $4500 10 years 10% Using ERR, is this a good alternative or a bad alternative? How do you know?
QUESTION 2 Consider the following mutually exclusive alternatives: Alternative A Alternative B Capital investment $473,000 $1,114,000...
QUESTION 2 Consider the following mutually exclusive alternatives: Alternative A Alternative B Capital investment $473,000 $1,114,000 Net annual receipts $104,100 $235,000 Both alternatives have a useful life of 20 years and no market value at that time. The MARR is 20 % per year. Determine the annual worth (AW) of the most profitable course of action. (Enter your answer as a number without the dollar sign.)
1.- You have the following three investment opportunities: 2 Capital Investment: Useful Life: Annual sales Variable...
1.- You have the following three investment opportunities: 2 Capital Investment: Useful Life: Annual sales Variable costs (as % of sales) Fixed costs Salvage Value: $ 175,000.00 $ 120,000.00 $ 180,000.00 $ 120,000.00 $ 100,000.00 $ 230,000.00 65% 55% 70% $ 10,400.00 $ 13,000.00 $ 19,500.00 $ 30,000.00 $ 12,000.00 $ 100,000.00 MARR (annual): 6% a) Which investment alternative is the best? (use Cotermination and Imputed Value) which one
U3 Company is considering three long-term capital investment proposals. Each investment has a useful life of 5 years. Relevant data on each project are as follows.
U3 Company is considering three long-term capital investment proposals. Each investment has a useful life of 5 years. Relevant data on each project are as follows.Project BonoProject EdgeProject ClaytonCapital investment $168,000$183,750$202,000Annual net income:Year 114,70018,90028,350 214,70017,85024,150 314,70016,80022,050 414,70012,60013,650 514,7009,45012,600 Total$73,500$75,600$100,800Depreciation is computed by the straight-line method with no salvage value. The company’s cost of capital is 15%. (Assume that cash flows occur evenly throughout the year.)1) Compute the net present value for each project. 2)
Q2. Evaluate an electronic fabrication machine on the basis of the annual worth method when the...
Q2. Evaluate an electronic fabrication machine on the basis of the annual worth method when the MARR is 10% per year. Relevant cost data are as follows: (7 Marks) Investment cost Useful life Market (salvage) value at end of useful life Annual operating expenses Overhead cost-end of 8th year Overhead cost-end of 12th year Electronic Fabrication Machine $18,000 15 years $6,000 $450 $1000 $1500 Using Aw(i) method with short explai Please don't use excel use AW(i) factor
U3 Company is considering three long-term capital investment proposals. Each investment has a useful life of...
U3 Company is considering three long-term capital investment proposals. Each investment has a useful life of 5 years. Relevant data on each project are as follows. Project Bono Project Edge Project Clayton Capital investment $164,800 $180,250 $204,000 Annual net income: Year 1 14,420 18,540 27,810 2 14,420 17,510 23,690 3 14,420 16,480 21,630 4 14,420 12,360 13,390 5 14,420 9,270 12,360 Total $72,100 $74,160 $98,880 Depreciation is computed by the straight-line method with no salvage value. The company’s cost of capital...
economic. asap Page 4 of 6 Problem 4 A capital investment of $25,000 is made in a project that will produce uniform...
economic. asap
Page 4 of 6 Problem 4 A capital investment of $25,000 is made in a project that will produce uniform annual revenues of $5,000 for 10 years, and then the project terminates. If the minimum attractive rate (MARR) is 10%. 1) Draw a cash flow diagram 2) What is the present worth of this project? 3) Find the internal rate of return (IRR) if a) Salvage value is zero. b) Salvage value is $8.000. 4) If the external...
7) An investment of $30,000 has a 12-year useful life and $5000 salvage value at the end of useful life. The annual benefit is $10,000 for the first 4 years, and decreases by $1000 per year after...
7) An investment of $30,000 has a 12-year useful life and $5000 salvage value at the end of useful life. The annual benefit is $10,000 for the first 4 years, and decreases by $1000 per year after that ($9000 for 5th year, $8000 for 6th year,.. What is EUAB of this investment? (-10%) a) $3966 b) $3214 c) $2934 d) S3688
7) An investment of $30,000 has a 12-year useful life and $5000 salvage value at the end of useful...
Problem 25-01A a-d (Video) (Part Level Submission) Bramble Company is considering three long-term capital investment proposals. Each investment has a useful life of 5 years. Relevant data on each pro...
Problem 25-01A a-d (Video) (Part Level Submission) Bramble Company is considering three long-term capital investment proposals. Each investment has a useful life of 5 years. Relevant data on each project are as follows Project Bono $174,400 Project Edge $190,750 Project Clayton $218,000 Capital investment Annual net income: Year 1 29,430 25,070 22,890 14,170 13,080 $104,640 15,260 15,260 15,260 15,260 15,260 $76,300 19,620 18,530 17,440 13,080 9,810 $78,480 Total Depreciation is computed by the straight-line method with no salvage value. The...
MARR=10% Alt A Alt B Initial Cost ($1,500) ($1,200) Annual Rev $1,200 $1,500 Annual Cost ($250)...
MARR=10% Alt A Alt B Initial Cost ($1,500) ($1,200) Annual Rev $1,200 $1,500 Annual Cost ($250) ($400) Salvage Val $400 $ 100.00 Useful Life 12 9 AW find the annual worth of project A and B. Use repeatability assumption
Consider an alternative with the following cash flows. Capital Investment Revenues Annual Expenses Market Value Useful Life MARR = € $45,000 $5000 at the end of the first year increasing by $2000 per year for the next 9 years $2000 $4500 10 years 10% Using ERR, is this a good alternative or a bad alternative? How do you know?
QUESTION 2 Consider the following mutually exclusive alternatives: Alternative A Alternative B Capital investment $473,000 $1,114,000 Net annual receipts $104,100 $235,000 Both alternatives have a useful life of 20 years and no market value at that time. The MARR is 20 % per year. Determine the annual worth (AW) of the most profitable course of action. (Enter your answer as a number without the dollar sign.)
1.- You have the following three investment opportunities: 2 Capital Investment: Useful Life: Annual sales Variable costs (as % of sales) Fixed costs Salvage Value: $ 175,000.00 $ 120,000.00 $ 180,000.00 $ 120,000.00 $ 100,000.00 $ 230,000.00 65% 55% 70% $ 10,400.00 $ 13,000.00 $ 19,500.00 $ 30,000.00 $ 12,000.00 $ 100,000.00 MARR (annual): 6% a) Which investment alternative is the best? (use Cotermination and Imputed Value) which one
Q2. Evaluate an electronic fabrication machine on the basis of the annual worth method when the MARR is 10% per year. Relevant cost data are as follows: (7 Marks) Investment cost Useful life Market (salvage) value at end of useful life Annual operating expenses Overhead cost-end of 8th year Overhead cost-end of 12th year Electronic Fabrication Machine $18,000 15 years $6,000 $450 $1000 $1500 Using Aw(i) method with short explai Please don't use excel use AW(i) factor
economic. asap
Page 4 of 6 Problem 4 A capital investment of $25,000 is made in a project that will produce uniform annual revenues of $5,000 for 10 years, and then the project terminates. If the minimum attractive rate (MARR) is 10%. 1) Draw a cash flow diagram 2) What is the present worth of this project? 3) Find the internal rate of return (IRR) if a) Salvage value is zero. b) Salvage value is $8.000. 4) If the external...
7) An investment of $30,000 has a 12-year useful life and $5000 salvage value at the end of useful life. The annual benefit is $10,000 for the first 4 years, and decreases by $1000 per year after that ($9000 for 5th year, $8000 for 6th year,.. What is EUAB of this investment? (-10%) a) $3966 b) $3214 c) $2934 d) S3688
7) An investment of $30,000 has a 12-year useful life and $5000 salvage value at the end of useful...
Problem 25-01A a-d (Video) (Part Level Submission) Bramble Company is considering three long-term capital investment proposals. Each investment has a useful life of 5 years. Relevant data on each project are as follows Project Bono $174,400 Project Edge $190,750 Project Clayton $218,000 Capital investment Annual net income: Year 1 29,430 25,070 22,890 14,170 13,080 $104,640 15,260 15,260 15,260 15,260 15,260 $76,300 19,620 18,530 17,440 13,080 9,810 $78,480 Total Depreciation is computed by the straight-line method with no salvage value. The...
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