State the interpolation operation performed to find the irr used to arrive to your final decision....
State the interpolation operation performed to find the irr used to arrive to your final decision. Use a 7% as an initial guess for the irr Determine which of the two machines below should be selected, using an AW-based rate of return analysis, if the MARR is 18% per year
| Semiautomatic | automatic | |
| first cost | -40,000 | -90,000 |
| annual cost | -100,000 | -95,000 |
| salvage value | 5,000 | 7,000 |
| life (years) | 2 | 4 |
Homework Answers
MA - IRR is less than 10%
MARR is the rate of return at which the present value of cash inflows is equal to the present value of cash outflows, i.e. NPV = 0. When at 10%, NPV <0 it means that IRR < 10%.
Add Answer to:
State the interpolation operation performed to find the irr used
to arrive to your final decision....
Required information Problem 14.056 The two machines shown are being considered for a chip manufacturing operation....
Required information Problem 14.056 The two machines shown are being considered for a chip manufacturing operation. Assume the MARR is a real return of 14% per year and that the inflation rate is 5.2% per year. -780.000 Machine First Cost. $ M&O. $ per year Salvage Value, $ Life, years -145,000 - 70.000 40,000 -5,000 200,000 Problem 14.056.b: Compare two alternatives based on their AW values with inflation consideration Which machine should be selected on the basis of an annual...
Required information Problem 14.056 The two machines shown are being considered for a chip manufacturing operation....
Required information Problem 14.056 The two machines shown are being considered for a chip manufacturing operation. Assume the MARR is a real return of 14% per year and that the inflation rate is 5.2% per year. 0.000 Machine First Cost, $ M&0. $ per year Salvage Value, $ Life, years -145.000 -70.000 40,000 5.000 00.000 Problem 14.056.a: Compare two alternatives based on their AW values without inflation consideration Which machine should be selected on the basis of an annual worth...
Required information The two machines shown are being considered for a chip manufacturing operation. Assume the...
Required information The two machines shown are being considered for a chip manufacturing operation. Assume the MARR is a real return of 13% per year and that the inflation rate is 4.9% per year. Machine First Cost, $ M&0, $ per year Salvage Value, $ Life, years А -150,000 -70,000 40,000 B -800,000 -5,000 200,000 00 Which machine should be selected on the basis of an annual worth analysis if the estimates are in future dollars? What is the annual...
i just need final answers please. Which of the computational methods do we use to find...
i just need final answers please.
Which of the computational methods do we use to find the incremental IRR of the given projects and which of the two projects is preferred by IRR with the given MARR? A n 0 ($8,000) ($11,000) 1 $300 $600 2 $%4,000 $5,000 3 $%2,600 $4,200 4 $%2,800 $3,800 $1,500 $2,000 5 MARR-11% А-В, А B-A, B B-A,A А-В, В What is the profitability index ratio for the incremental analysis between the two projects and...
Imaginary Inc. is considering three mutually exclusive brands of state-of-the-art laptops for its employees to increase...
Imaginary Inc. is considering three mutually exclusive brands of state-of-the-art laptops for its employees to increase their productivity and consequently realize annual cost savings from faster project completion. If the company MARR is 15% per year, which brand should be selected based on incremental rate of return analysis? Use the shortcut method for incremental.mte of retum analysis. Laptop Brand First Cost Uniform Annual Benefits Salvage Value Useful Life (years) IRR $5,000 $1,800 $500 $10,000 $2,000 $1,000 $12,000 $2,800 19% 13%...
6. You are considering a herd improvement that will cost $7,000, but yield year-end cash returns...
6. You are considering a herd improvement that will cost $7,000, but yield year-end cash returns of: $2,000, $2,500, and $3,000 in the following three years. Assuming a 7% required- rate-of-return, would you make this investment? a. NPV = b. IRR = c. Accept investment Yes No 7. Norma and Fred Buvalot are buying a new combine. They have narrowed their options to two combines and must purchase one. Each combine will provide the same cash inflows, but differ in...
what is T3 in year 10 and IRR. Dark Skies Observatory is considering several options to...
what
is T3 in year 10 and IRR.
Dark Skies Observatory is considering several options to purchase a new deep-space telescope. Revenue would be generated from the telescope by selling "time and use" slots to various researchers around the world. Four possible telescopes have been identified in addition to the possibility of not buying a telescope if none are financially attractive. The table below details the characteristics of each telescope. An internal rate of return analysis is to be performed....
Find cost difference between 2 options using net present worth analysis Your company signed a contract...
Find cost difference between 2 options using net present worth
analysis
Your company signed a contract to remove soil from government-owned property. This task requires a specific bulldozer to dig and load the material onto a transportation vehicle. There are two models of ripper-bulldozer to consider: Model Alpha costs $200,000, and two units of model alpha would be required to remove the material within 2 years. Operating cost for each unit would run to $40,000/year for 2000 hours of operation....
Question 1 0.15 pts Of the following equations, which will allow you to solve for the...
Question 1 0.15 pts Of the following equations, which will allow you to solve for the ROR of this cash flow? Year Cash Flow $-15,000 O 1 $2,500 2 $5,000 $7,500 4 $10,000 15,000 2500(P/A, i, 5) +2500 (P/G, i, 5) 0 15,000 2500(P/A, i, 5)+2500 (P/G, i, 5) 15,000 2500(P/G, i*, 5) 0 150002500(P/G, i, 5) 15,000 2500(P/A, i", 4) +2500 (P/G, i", 4) 0 15,000 2500(P/A, i, 4)+2500 (P/G, i, 4) = Ln Question 2 0.3 pts Petra's...
Replacement Decision, Computing After-Tax Cash Flows, Basic NPV Analysis Okmulgee Hospital (a large metropolitan for-profit hospital)...
Replacement Decision, Computing After-Tax Cash Flows, Basic NPV Analysis Okmulgee Hospital (a large metropolitan for-profit hospital) is considering replacing its MRI equipment with a new model manufactured by a different company. The old MRI equipment was acquired three years ago, has a remaining life of five years, and will have a salvage value of $100,000. The book value is $2,000,000. Straight-line depreciation with a half-year convention is being used for tax purposes. The cash operating costs of the existing MRI...
Required information Problem 14.056 The two machines shown are being considered for a chip manufacturing operation. Assume the MARR is a real return of 14% per year and that the inflation rate is 5.2% per year. -780.000 Machine First Cost. $ M&O. $ per year Salvage Value, $ Life, years -145,000 - 70.000 40,000 -5,000 200,000 Problem 14.056.b: Compare two alternatives based on their AW values with inflation consideration Which machine should be selected on the basis of an annual...
Required information Problem 14.056 The two machines shown are being considered for a chip manufacturing operation. Assume the MARR is a real return of 14% per year and that the inflation rate is 5.2% per year. 0.000 Machine First Cost, $ M&0. $ per year Salvage Value, $ Life, years -145.000 -70.000 40,000 5.000 00.000 Problem 14.056.a: Compare two alternatives based on their AW values without inflation consideration Which machine should be selected on the basis of an annual worth...
Required information The two machines shown are being considered for a chip manufacturing operation. Assume the MARR is a real return of 13% per year and that the inflation rate is 4.9% per year. Machine First Cost, $ M&0, $ per year Salvage Value, $ Life, years А -150,000 -70,000 40,000 B -800,000 -5,000 200,000 00 Which machine should be selected on the basis of an annual worth analysis if the estimates are in future dollars? What is the annual...
i just need final answers please.
Which of the computational methods do we use to find the incremental IRR of the given projects and which of the two projects is preferred by IRR with the given MARR? A n 0 ($8,000) ($11,000) 1 $300 $600 2 $%4,000 $5,000 3 $%2,600 $4,200 4 $%2,800 $3,800 $1,500 $2,000 5 MARR-11% А-В, А B-A, B B-A,A А-В, В What is the profitability index ratio for the incremental analysis between the two projects and...
Imaginary Inc. is considering three mutually exclusive brands of state-of-the-art laptops for its employees to increase their productivity and consequently realize annual cost savings from faster project completion. If the company MARR is 15% per year, which brand should be selected based on incremental rate of return analysis? Use the shortcut method for incremental.mte of retum analysis. Laptop Brand First Cost Uniform Annual Benefits Salvage Value Useful Life (years) IRR $5,000 $1,800 $500 $10,000 $2,000 $1,000 $12,000 $2,800 19% 13%...
6. You are considering a herd improvement that will cost $7,000, but yield year-end cash returns of: $2,000, $2,500, and $3,000 in the following three years. Assuming a 7% required- rate-of-return, would you make this investment? a. NPV = b. IRR = c. Accept investment Yes No 7. Norma and Fred Buvalot are buying a new combine. They have narrowed their options to two combines and must purchase one. Each combine will provide the same cash inflows, but differ in...
what
is T3 in year 10 and IRR.
Dark Skies Observatory is considering several options to purchase a new deep-space telescope. Revenue would be generated from the telescope by selling "time and use" slots to various researchers around the world. Four possible telescopes have been identified in addition to the possibility of not buying a telescope if none are financially attractive. The table below details the characteristics of each telescope. An internal rate of return analysis is to be performed....
Find cost difference between 2 options using net present worth
analysis
Your company signed a contract to remove soil from government-owned property. This task requires a specific bulldozer to dig and load the material onto a transportation vehicle. There are two models of ripper-bulldozer to consider: Model Alpha costs $200,000, and two units of model alpha would be required to remove the material within 2 years. Operating cost for each unit would run to $40,000/year for 2000 hours of operation....
Question 1 0.15 pts Of the following equations, which will allow you to solve for the ROR of this cash flow? Year Cash Flow $-15,000 O 1 $2,500 2 $5,000 $7,500 4 $10,000 15,000 2500(P/A, i, 5) +2500 (P/G, i, 5) 0 15,000 2500(P/A, i, 5)+2500 (P/G, i, 5) 15,000 2500(P/G, i*, 5) 0 150002500(P/G, i, 5) 15,000 2500(P/A, i", 4) +2500 (P/G, i", 4) 0 15,000 2500(P/A, i, 4)+2500 (P/G, i, 4) = Ln Question 2 0.3 pts Petra's...
Most questions answered within 3 hours.
-
A telephone survey uses a random digit dialing machine to call
subjects. The random digit dialing...
asked 27 minutes ago -
How can having too little or too much of a certain
protein cause problems for an...
asked 1 hour ago -
Assume a muscle has a PCSA = 20 cm2 and Lo = 12 cm. Assume it...
asked 3 hours ago -
What is the yield to maturity of a ten-year, $1,000 bond with a
5.2% coupon rate...
asked 4 hours ago -
A mass m = 5 kg is tied on one end of a rope and is...
asked 4 hours ago -
The Average sales price of single-family houses in Charlotte is
$210,000 with a standard deviation of...
asked 4 hours ago -
Target Costing
Laser Impressions, Inc., manufactures color laser printers.
Model J20 presently sells for $225 and...
asked 4 hours ago -
a bottle cap manufacturer with four machines and six operators
wants to see if variation in...
asked 5 hours ago -
State Farm Insurance studies show that in Colorado, 55% of the
auto insurance claims submitted for...
asked 5 hours ago -
Complete the following reactions which form ethers (A
and B) and cyclic ethers (C-E) as major...
asked 6 hours ago -
in a perfectly elastic collision what is the velocity of ball A
if the original direction...
asked 6 hours ago -
PLEASE ANSWER ALL
1) The pressure of the atmosphere decreases with increasing
altitude in the
Choose...
asked 7 hours ago