Homework Answers
Answer:-
The correct option is 5. None of the options 1,2,3,4 are correct
The Present Worth Analysis (PWA), Annual Worth Analysis (AWA) and Rate of Return (RoR) all yield different results.
The PWA is calculated by discounting all the cash flows to get the present value of the project. The PWA uses a discount rate to discount all the cash flows. These may be the interest rate or the cost of capital.
The AWA is equivalent to annual worth of all estimated income earned and costs incurred during the life of a project. This method is usually used to compare alternative projects which needs to be undertaken.
The rate of return (RoR) is the income that is earned annually from investing in the project. It is expressed as a percentage earned as a proportion of total investment.
All the three methods different results on calculation. Therefore Option 5 is correct.
Add Answer to:
If Present Worth Analysis, Annual Worth Analysis, and Rate of Return Analysis are performed properly on the same data,...
The net present value (NPV) and internal rate of return (IRR) methods of investment analysis are...
The net present value (NPV) and internal rate of return (IRR) methods of investment analysis are interrelated and are sometimes used together to make capital budgeting decisions. Consider the case of Blue Hamster Manufacturing Inc.: Last Tuesday, Blue Hamster Manufacturing Inc. lost a portion of its planning and financial data when its server and its backup server crashed. The company’s CFO remembers that the internal rate of return (IRR) of Project Gamma is 11.30%, but he can’t recall how much...
The net present value (NPV) and internal rate of return (IRR) methods of investment analysis are...
The net present value (NPV) and internal rate of return (IRR) methods of investment analysis are interrelated and are sometimes used together to make capital budgeting decisions. Consider the case of Green Caterpillar Garden Supplies Inc.: Last Tuesday, Green Caterpillar Garden Supplies Inc. lost a portion of its planning and financial data when its server and its backup server crashed. The company’s CFO remembers that the internal rate of return (IRR) of Project Gamma is 13.80%, but he can’t recall...
Please answer question a using present worth and Internal rate of return methods and show your...
Please answer question a using present worth and Internal rate
of return methods and show your calculations
Exercise #25: An investment proposal is expected to have the following characteristics: Year 1 Year 2 Year 3 Gross income provide, S 17,000 22,000 19,000 Investment needed, 16,000 14,000 0 Operation expense, s 6,000 8,000 11,000 Depreciation charges, $ 10,000 10,000 10,000 Investments occur during the year and allow the indicated earnings, but both the income and investments are considered to have been...
the present worth of the do nothing option = 0 the duration of window analysis is 15 years use this interest rate =8.32% the difference in present worth between Option A and Option B over the analysi...
the present worth of the do nothing option = 0
the duration of window analysis is 15 years
use this interest rate =8.32%
the difference in present worth between Option A and Option B
over the analysis window= 10.28 millions
Question 6 ncorrect 0.00 points out of 1.00 You are considering two options for a production line. The expected market for the product is 15 years. IF you go forward with the project, you expect to borrow the money at...
The net present value (NPV) and internal rate of return (IRR) methods of investment analysis are...
The net present value (NPV) and internal rate of return (IRR) methods of investment analysis are interrelated and are sometimes used together to make capital budgeting decisions. Consider the case of Green Caterpillar Garden Supplies Inc.: Last Tuesday, Green Caterpillar Garden Supplies Inc. lost a portion of its planning and financial data when both its main and its backup servers crashed. The company’s CFO remembers that the internal rate of return (IRR) of Project Zeta is 14.6%, but he can’t...
The net present value (NPV) and internal rate of return (IRR) methods of investment analysis are...
The net present value (NPV) and internal rate of return (IRR) methods of investment analysis are interrelated and are sometimes used together to make capital budgeting decisions. Consider the case of Cold Goose Metal Works Inc.: Last Tuesday, Cold Goose Metal Works Inc. lost a portion of its planning and financial data when both its main and its backup servers crashed. The company's CFO remembers that the internal rate of return (IRR) of Project Lambda is 11.3%, but he can't...
The net present value (NPV) and internal rate of return (IRR) methods of investment analysis are...
The net present value (NPV) and internal rate of return (IRR) methods of investment analysis are interrelated and are sometimes used together to make capital budgeting decisions. Consider the case of Cold Goose Metal Works Inc.: Last Tuesday, Cold Goose Metal Works Inc. lost a portion of its planning and financial data when both its main and its backup servers crashed. The company's CFO remembers that the internal rate of return (IRR) of Project Omicron is 11.3%, but he can't...
The net present value (NPV) and internal rate of return (IRR) methods of investment analysis are...
The net present value (NPV) and internal rate of return (IRR) methods of investment analysis are interrelated and are sometimes used together to make capital budgeting decisions. Consider the case of Green Caterpillar Garden Supplies Inc.: Last Tuesday, Green Caterpillar Garden Supplies Inc. lost a portion of its planning and financial data when both its main and its backup servers crashed. The company's CFO remembers that the internal rate of return (IRR) of Project Zeta is 14.6%, but he can't...
The net present value (NPV) and internal rate of return (IRR) methods of investment analysis are...
The net present value (NPV) and internal rate of return (IRR) methods of investment analysis are interrelated and are sometimes used together to make capital budgeting decisions. Consider the case of Green Caterpillar Garden Supplies Inc.: Last Tuesday, Green Caterpillar Garden Supplies Inc. lost a portion of its planning and financial data when both its main and its backup servers crashed. The company's CFO remembers that the internal rate of return (IRR) of Project Delta is 13.2%, but he can't...
The net present value (NPV) and internal rate of return (IRR) methods of investment analysis are...
The net present value (NPV) and internal rate of return (IRR) methods of investment analysis are interrelated and are sometimes used together to make capital budgeting decisions. Consider the case of Cute Camel Woodcraft Company Last Tuesday, Cute Camel Woodcraft Company lost a portion of its planning and financial data when both its main and its backup servers crashed. The company's CFO remembers that the internal rate of return (IRR) of Project Gamma is 11.3%, but he can't recall how...
Please answer question a using present worth and Internal rate
of return methods and show your calculations
Exercise #25: An investment proposal is expected to have the following characteristics: Year 1 Year 2 Year 3 Gross income provide, S 17,000 22,000 19,000 Investment needed, 16,000 14,000 0 Operation expense, s 6,000 8,000 11,000 Depreciation charges, $ 10,000 10,000 10,000 Investments occur during the year and allow the indicated earnings, but both the income and investments are considered to have been...
the present worth of the do nothing option = 0
the duration of window analysis is 15 years
use this interest rate =8.32%
the difference in present worth between Option A and Option B
over the analysis window= 10.28 millions
Question 6 ncorrect 0.00 points out of 1.00 You are considering two options for a production line. The expected market for the product is 15 years. IF you go forward with the project, you expect to borrow the money at...
The net present value (NPV) and internal rate of return (IRR) methods of investment analysis are interrelated and are sometimes used together to make capital budgeting decisions. Consider the case of Cold Goose Metal Works Inc.: Last Tuesday, Cold Goose Metal Works Inc. lost a portion of its planning and financial data when both its main and its backup servers crashed. The company's CFO remembers that the internal rate of return (IRR) of Project Lambda is 11.3%, but he can't...
The net present value (NPV) and internal rate of return (IRR) methods of investment analysis are interrelated and are sometimes used together to make capital budgeting decisions. Consider the case of Cold Goose Metal Works Inc.: Last Tuesday, Cold Goose Metal Works Inc. lost a portion of its planning and financial data when both its main and its backup servers crashed. The company's CFO remembers that the internal rate of return (IRR) of Project Omicron is 11.3%, but he can't...
The net present value (NPV) and internal rate of return (IRR) methods of investment analysis are interrelated and are sometimes used together to make capital budgeting decisions. Consider the case of Green Caterpillar Garden Supplies Inc.: Last Tuesday, Green Caterpillar Garden Supplies Inc. lost a portion of its planning and financial data when both its main and its backup servers crashed. The company's CFO remembers that the internal rate of return (IRR) of Project Zeta is 14.6%, but he can't...
The net present value (NPV) and internal rate of return (IRR) methods of investment analysis are interrelated and are sometimes used together to make capital budgeting decisions. Consider the case of Green Caterpillar Garden Supplies Inc.: Last Tuesday, Green Caterpillar Garden Supplies Inc. lost a portion of its planning and financial data when both its main and its backup servers crashed. The company's CFO remembers that the internal rate of return (IRR) of Project Delta is 13.2%, but he can't...
The net present value (NPV) and internal rate of return (IRR) methods of investment analysis are interrelated and are sometimes used together to make capital budgeting decisions. Consider the case of Cute Camel Woodcraft Company Last Tuesday, Cute Camel Woodcraft Company lost a portion of its planning and financial data when both its main and its backup servers crashed. The company's CFO remembers that the internal rate of return (IRR) of Project Gamma is 11.3%, but he can't recall how...
Most questions answered within 3 hours.
-
10. Two forces act on a 3 kg object, the gravitational force and
a second, constant...
asked 1 minute ago -
Discuss how Entrepreneurial leadership style differs
from traditional leadership?
asked 24 minutes ago -
A futuristic design for a car is to have a large solid
disk-shaped flywheel within the...
asked 22 minutes ago -
Solid NaOH is added to a solution of 0.50 M acetic acid until
the pH of...
asked 25 minutes ago -
Which of the following statements is not a characteristic of the
Internal Revenue Code?
A) The...
asked 33 minutes ago -
Say true or false and explain it.
A heap is represented using an array. The array...
asked 43 minutes ago -
Explain how the DNA replication enzyme complex is organized and
functions, please don't copy paste from...
asked 42 minutes ago -
how
can personality contribute to one scoring high on the need to
evaluate measurement by Jarvis?
asked 44 minutes ago -
A high jumper is attempting to jump over a crossbar that is
placed at a height...
asked 48 minutes ago -
1.
A hemophiliac male mates with a healthy female. what are the
possible genotypes for the...
asked 1 hour ago -
You could argue that even though Rockefeller clearly had
enormous market power (90% of the market)...
asked 1 hour ago -
At the beginning of the year, Palermo Brothers, Inc., purchased
a new plastic water bottle making...
asked 1 hour ago