15. ABC Co. started work on two separate projects during 20x1. Information on these projects is shown below: Project A B Contract price 9,000,000 8,000,000 Costs incurred 4,000,000 5,000,000 Estimated costs to complete 4,000,000 Progress billings 5,000,000 8,000,000
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- n Taraz Company has assembled the following dato with respect to eight projects. Project 1: Initial cost $100,000, NPV- $5.000 Project 2: intial cost $104000, NPv 55,150 Pject innal cost $tOR.000 NPV1530 Project 4: Initial cost $110,000; NPV = $5,450 Project 5: Initial cost $98,000, NPV $4950 Project 6 Ininial cost 596.000, NPV S4,900 Project 7. nitial coot S4000, NPVSAASO Paject ntia con po0 MPY $4,700 Taraz Company can only do one of the projects. Which ONE is the BEST? Note: Your calculator needs to display at least 4 digits after the decimal in order to anewer tha question comecty O Project 1 Project 2 Project 3 Project 4 O Project 5 Project 6 Project 7 Project 8 SUMIT ALL ANEWERSPlease no written by hand and no emage The following data are available for two mutually exclusive projects: Project A $16,900,000 PW(benefits) PW(operating and maintenance costs) PW(capital cost) 4,700,000 7,600,000 Complete parts (a) through (e) below. a. Compute the benefit-cost ratios for both projects. Project B $15,100,000 9,300,000 3,000,000 The ratios for projects A and B, respectively, are 1.374 and 1.228 (Type integers or decimals rounded to three decimal places as needed.) b. Compute the modified benefit-cost ratios for both projects. The ratios for projects A and B, respectively, are 1.605 and 1.933 (Type integers or decimals rounded to three decimal places as needed.) c. Compute the benefit-cost ratio for the increment between the projects. Select the correct choice below and, if necessary, fill in the answer box to complete your choice. OA. The ratio is (Type an integer or decimal rounded to three decimal places as needed.) B. The ratio is undefined. d. Compute the…Dixon Construction Materials has collected this information: Based on this Information, what is the EVA for the project? A. $100,000 B. $10,000 C. $450,000 D. ($110,000)
- ne NPV, with rankings Botany Bay, Inc., a maker of casual clothing, is considering four projects shown in the following table, Because of past financial difficulties, ptions the company has a high cost of capital at 14.4%. a. Calculate the NPV of each project, using a cost of capital of 14.4%. b. Rank acceptable projects by NPV. c. Calculate the IRR of each project and use it to determine the highest cost of capital at which all of the projects would be acceptable. a. Calculate the NPV of each project, using a cost of capital of 14.4%. The NPV of project A is $ (Round to the nearest cent.) Is project A acceptable? (Select the best answer below.) O A. No O B. Yes The NPV of project B is $ (Round to the nearest cent.) la nreinnt Danontabl-2/0lest the hant an nr hale Click to select your answer(s). P Type here to searchCompute the project cost. Gross income 1,000,000 Life of project Operating cost Rate of project 500,000 5 years 20% Benefit ratio 1.08 O a. P1,384,543.00 O b. P1,348,543.00 O c. P1,384,534.00 O d. P1,384,453.00A3-2 A project has costs and incomes as shown on the diagram in thousands of dollars. C = Capital, OC = Operating Cost, and L= salvage or liqui- dation value of the assets upon termination of the project. I=100 I=250 I=375 I=500 I=500 I=400 C=100 C=500 OC=100 OC=125 OC=150 OC-150 OC=200 0 1 2 3 4 5 6 The investor's minimum rate of return is 15%. Calculate the before- tax cash flow (BTCF) and then determine the ROR, NPV, PVR, and Growth ROR for the project using the 6-year evaluation life. L=100
- of stion Given the following information about projects A and B: Project A Project B -10,000 -10,000 4,000 3,000 10,000 Time 0 Time 1 Time 2 Time 3 If alpha company uses IRR rule to choose projects, which of the projects (Project A or Project B) will rank highest? Select one: O O O 5,000 4,000 3,000 a. Project A b. Project B c. Project A and Project B have the same ranking. d. Cannot calculate a payback period without a discount rate.heavy equipment for a certain project and the details are as follows: ITEM: MACHINE A: MACHINE B: First Cost P2,000,000.00 P3,000,000.00 Annual operating P325,000.00 P250,000.00 cost Annual labor cost Insurance and taxes Payroll taxes Estimated life P500,000.00 P320,000.00 4% 10% 12 yrs. 4% 10% 12 yrs. If the minimum ROR is 25%, What is the annual cost of Machine A & B using present worth method?All techniques with NPV profile-Mutually exclusive projects Projects A and B, of equal risk, are alternatives for expanding Rosa Company's capacity. The firm's cost of capital is 12%. The cash flows for each project are shown in the following table: a. Calculate each project's payback period. b. Calculate the net present value (NPV) for each project. c. Calculate the internal rate of return (IRR) for each project. d. Indicate which project you would recommend. GICKER a. The payback period of project A is years. (Round to two decimal places.) The payback period of project B is years. (Round to two decimal places.) b. The NPV of project A is $. (Round to the nearest cent.) The NPV of project B is $. (Round to the nearest cent.) c. The IRR of project A is%. (Round to two decimal places.) The IRR of project B is%. (Round to two decimal places.) d. Which project will you recommend? (Select the best answer below.) OA. Project B OB. Project A
- You are given the following data for a project that is to be evaluated using the APV method. Year EBIT CAPEX 0 O $201.765 O $193,822 O $185,617 O $222,872 O $213,918 1 $127.000 $60,000 2 Depreciation Increase in NWC Year-end net debt $80,000 Cost of net debt = 8% Unlevered cost of capital = 11.8% Corporate tax rate = 30% Calculate the total value of the project at t = 0. using the APV method. $72,000 $50,000 $100,000 $133,000 $40,000 $80,000 $60,000 $140,000 3 $138.500 $10,000 $84,000 $30,000 $140,000Five mutually exclusive projects had the following data: V W X Y Z NPV $(3,000) $56,000 $23,000 $14,000 $28,000 IRR 7% 10% 15% 13% 6% Which project is preferred?12:09 pm l 36% 4_58346850211... Assignment- project analysis and evaluation Business management –ext -3d year 2021 g.c Ex: 1. A company is considering to appraise two projects. Two projects are available X and Y each costing $ 50, 000. the annual cash flows are expected as below. ACFS Year Plant X Plant Y 1 $ 15, 000 $ 5, 000 20, 000 15, 000 3 25, 000 20, 000 4 15, 000 30, 000 5 10, 000 20, 000 The cost of capital is 10%. Calculate 1) Pay back period 2) Net present value 3) Profitability Index 4) Internal Rate of Return Scanned by CamScanner ...