The following projects listed in TABLE Q48 are being considered by MuhibbahFabrication Company for allocation of its annual capital budget. While many worthyprojects are available, the money available is limited. All projects have a 5-year lifeand are acceptable at a 10% interest rate.TABLE Q48: List of available projects to fundProject First Cost (RM) Net Annual BenefitsPW (10%)(RM)(RM)3,2002,1316,0002,7455,0002,000ABCD10,00020,000A.B.C.D.15,0005,0003,9542,582A B C DC B D AB C A DB-A-C-DUse this information, answer Q48 through Q50:48. Rank the projects in descending order (best to worst) using PW at an interest rateof 10%.IRR (%)49. Rank the projects in descending order (best to worst) based on IRR.A. B C A-DB. B A C DC. D→C-A-BD. D-B-C-A18.0315.2419.8628.6550. If there is only RM30,000 allocated for capital budget, determine the MARRapplicable for the funded projects.A. 28.65%B. 19.86%C. 18.03%D. 15.24%

Present worth is the discounted value of future cash flows .IRR (Internal rate of return ) is that…

The following projects listed in TABLE Q48 are being considered by Muhibbah Fabrication Company for allocation of its annual capital budget. While many worthy projects are available, the money available is limited. All projects have a 5-year life and are acceptable at a 10% interest rate. TABLE Q48: List of available projects to fund Project First Cost (RM) Net Annual Benefits PW (10%) (RM) 3,200 6,000 5,000 2,000 ABCO с D 10,000 20,000 15,000 5,000 (RM) 2,131 2,745 A B C D C B D A 3,954 2,582 IRR (%) 18.03 15.24 19.86 28.65 Use this information, answer Q48 through Q50: 48. Rank the projects in descending order (best to worst) using PW at an interest rate of 10%. A. B.

The following projects listed in TABLE Q48 are being considered by Muhibbah Fabrication Company for allocation of its annual capital budget. While many worthy projects are available, the money available is limited. All projects have a 5-year life and are acceptable at a 10% interest rate. TABLE Q48: List of available projects to fund Project First Cost (RM) Net Annual Benefits PW (10%) (RM) 3,200 6,000 5,000 2,000 ABCO с D 10,000 20,000 15,000 5,000 (RM) 2,131 2,745 A B C D C B D A 3,954 2,582 IRR (%) 18.03 15.24 19.86 28.65 Use this information, answer Q48 through Q50: 48. Rank the projects in descending order (best to worst) using PW at an interest rate of 10%. A. B.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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