proposal to reduce oil spill on MX5 has a B-C ratio of 1.5. The conventional annual worth of benefits is P560,000 and the lisbenefits is P100,000. What is the first cost of the project if the interest rate is 6% per year and the project is expected to have a CO-year life? ANSWER: Blank 1 Blank 1 Add your answer
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- A proposal to reduce oil spill on MX5 has a B-C ratio of 1.4. The conventional annual worth of benefits minus disbenefits is P560,000. What is the first cost of the project if the interest rate is 6% per year and the project is expected to have a 20-year life? ANSWER: Blank 13. A proposal to reduce oil spill on MX5 has a B-C ratio of 1.4. The conventional annual worth of benefits minus disbenefits is P560,000. What is the first cost of the project if the interest rate is 6% per year and the project is expected to have a 20-year life?Moving to another question will save this response. Question 4 XYZ is evaluating a project that would require an initial investment of $74,900.00 today. The project is expected to produce annual cash flows of $8,900.00 each year forever with the first annual cash flow expected in 1 year. The NPV of the project is $7,100.00. What is the IRR of the project? O 10.85% (plus or minus 0.02 percentage points) O 11.88% (plus or minus 0.02 percentage points) O 9.48% (plus or minus 0.02 percentage points) O 13.13% (plus or minus 0.02 percentage points) O None of the above is within 0.02 percentage points of the correct answer A Moving to another question will save this response.
- You are considering a project that costs OMR600 and has expected cash flows of OMR224, OMR250.88 and OMR280.99 over the next three years. If the appropriate discount rate for the project's cash flows is 12%, what is the net present value of this project? Select one: O a. The NPV is negative O b. OMR 0.00 O c. OMR 9.34 O d. OMR84.75 O e. OMR49.34Redbird Company is considering a project with an initial investment of $265,000 in new equipment that will yield annual net cash flows of $45,800 each year over its seven-year life. The companys minimum required rate of return is 8%. What is the internal rate of return? Should Redbird accept the project based on IRR?Question 4a) A firm has a choice between two investment projects, all of which involve an initial outlay of GH¢36,000. The returns at the end of the next 4 years are given below. If the interest rate is 15%, say whether each project is viable or not, and which is the best investment.Year Project A Project B1 15,000 5,0002 15,000 10,0003 15,000 20,0004 15,000 25,000All values are given in GH¢. b) A factory increase its production by 712% and produced 1290 tonnes. How many tonnes did she produce before? c) If we place GH¢100 in the savings account that yields 12% compounded quarterly, what nearest GH¢ would our investment grow to at the end of 5 years?
- A company is considering investing in a project that is expected to return $280,000 three years from now. How much is the company willing to pay for this investment if the company requires a 9% return? PV of $1 table FV of $1 table O $131,472 O $280,000 O $216,216 O $259,555An investment project costs X. It is expected to have an annual net cash flow of 0.125X for 20 years. What is the project's payback period? Select one: 6 а. 4 years b. 2 years c. 8 years d. 6 yearsYou are considering an investment opportunity that requires an initial investment of $150 million in period 0. The project will generate only one future payment of $168 million at the end of the first year. The cost of capital is 8% . What is the IRR for the project? [Note that getting the actual value should not require trial and error or a financial calculator, because this is a simple case.] A. 114% B. 8% C. 20% D. 12% E. 10.7% F. 5.6% G. 14% H. 112%
- engineering economy (multiple choice) 3.) Consider a project which involves the investment of P100,000.00 now and P100,000 at the end of one year. Revenues of P150,000 will be generated at the end of years 1 and 2. What is the net present value of this project if the annual interest rate is 10%? a.) P69,421.50 b.) P67,421.50 c.) P68,421.50 d.) P65,421.50Question Answer 1. If the payback on a project is 3.2 years will the discounted payback be more or will it be less than 3.2 years? 2. If the IRR of a project is 10% will the MIRR be more or will it be less than 10%? 3. What does Payback inform us about the risk of project? 4. What does IRR inform us about the risk of project?QUESTION 1 XYZ is evaluating a project that would require an initial investment of $72,300.00 today. The project is expected to produce annual cash flows of $8,400.00 each year forever with the first annual cash flow expected in 1 year. The NPV of the project is $7,500.00. What is the IRR of the project? O 11.62% (plus or minus 0.02 percentage points) 10.53% (plus or minus 0.02 percentage points) 10.37% (plus or minus 0.02 percentage points) 12.96% (plus or minus 0.02 percentage points) O None of the above is within 0.02 percentage points of the correct answer