Determine which of the following two alternatives is the most efficient and which is the most profitable using the Internal Rate of Return (IRR) method: Alter. Purchase Cost $ Annual Savings Life (yrs) (Reduced Pollution fees $lyr) A 1,000,000 $355,000 8 B 3,000,000 $575,000 16 The MARR is 10% per year.
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- Data Using Incremental with EUAW analysis find the best alternative, MARR = %10. You should use Excel and show your equations separately, see below example: [A Benefit - [IC (A/P, i%, n) - Salvage (A/F, i, n)] + A Cost+ G Cost (A/G, i, n)] First Cost Salvage Value Annual Benefit M&O M&O Gradient Useful Life, Years A $2,300,000 $85,000 $580,000 $65,000 $10,000 10 B $2,750,000 $125,000 $670,000 $78,000 $15,000 10 с $2,550,000 $95,000 $650,000 $72,000 $12,500 101. Calculate the Annual rate of return. Solving for Rates - Excel FILE INSERT PAGE LAYOUT FORMULAS DATA REVEW VIEW Calibri 国 Paste BIU - -A-Alignment Number Conditional Format as Cell Cells Formatting Table Styles Clipboard Font. Styles A1 E. What annual rate of return is earned on a $5,000 investment when it grows to $10,750 in six years? (Do not round intermediate calculations and round your final answer to 2 decimal places Present value 5,000 Future value Number of periods Complete the following analysis. Do not hard code values in vour calculations. Annual rate of return s of 10 Next > here to search TPLProblem 3) Given 2 alternatives: ineleviupe erf B First Cost 4,000 1,000 2,000 6,000 500 Annual Cost Annual Benefit Life 2,200 5 10 aed tedt pnit owT dinom e Salvage If i 10%, find the better alternative computing NPW of both alternatives Assume alternative A is replaced at the end of its useful life. 3,000 1,000
- s, and improvements, choose Check for Updates. 4. Total fixed cost OMR 24000 Selling price OMR 25 Variable cost OMR 20 Calculate: a. Contribution per Unit b. P/V Ratio c. Break-even point(BEP) in units and Amounts (OMR) d. What will be the amount of sales if it is desired to earn a profit of (a) OMR 8000; (b) OMR 30000? e. Margin of safety and profit if actual sales is OMR 150000Payback Period Waterways should retain Old Backhoes equipment. Profitability Index New Backhoes 3.58 years (3) Comparing the profitability index for each choice. (Round answers to 2 decimal places, eg. 1.25) IRR Factor New Backhoes Waterways should retain Old Backhoes equipment. Waterways should New Backhoes 1.9 0.2752 Old Backhoes Calculate the internal rate of return factor for the new and old blackhoes. (Round answers to 5 decimal places, e.g. 5.27647.) Old Backhoes Old Backhoes retain Old Backhoes equipment. 1.78 years 0.5833 3,38 (4) Comparing the internal rate of return for each choice to the required 8% discount rate.x E My Home CengageNOWv2 |Online teachir x+ now.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inpro. ta o 伯 Determine the average rate of return for a project that is estimated to yield total income of $250,000 over 4 years, costs $480,000, and has a $20,000 residual value. Next Previous Submit Test for Grading
- Home Insert Draw Design Layout Mail ngs Review View Help A Paste Font Paragraph Styles Editing Dictate Editor Reuse Files do Clipboard N Styles S Voice Reuse Files Editor Problem Initial investment (II) = $6,500, TPP = 2.5 years, required rate of return (r) = 8% Year Operating cash flow 1 2,000 4,000 3 3,000 1. How much is payback period (PP)? Should the project be accepted or rejected? 2. How much is discounted payback period (DPP)? Should the project be accepted or rejected? 3. How much is net present value (NPV)? Should the project be accepted or rejected? 4. How much is internal rate of return (IRR)? Should the project be accepted or rejected? 5. How much is modified internal rate of return (MIRR)? Should the project be accepted or rejected? 5 736 words English (United States) O Focus 7:38 PM 4/13/2022Calculate the result of NPV for project A with discount rate = 10%, the best solution is: Year 0 123 + 4 Select one: a. 95.5 b. 127.3 O b. O C. c. -181.8 O d. d. -136.4 A -800 100 200 300 200 B -200 50 70 80 240Moving to anether queson will save this response Quistion Queston& What the value of an investment that promises to pay $502 annually in perpetuity if the appropriate required rate of return is 8.4 percent? points $59.76 $46310 $544 17 None of the listed choices is correct AMoving to another question will save this response. Quest MacBook Air SO & 5 E T D G K C V B エ F.
- Subject: Logistic management calculate EVA and suggest favorable or not ? Investment 1 mioSales 500,000All Expenses 400,000Market opportunity cost 15%Problem 4 (Target Costing, Strategy) Benchmark Industries manufactures large workbenches for industrial use. Wally Garcia, the vice president for marketing at Benchmark, has concluded from his market analysis that sales are dwindling for Benchmark's standard table because of aggressive pricing by competitors. Benchmark's table sells for P875 whereas the competition's comparable table is selling in the P80Q range. Garcia has determined that dropping price to P800 is necessary to regain the firm's annual market share of 10,000 tables. Cost data based on sales of 10,000 tables are: Budgeted Amount 400,000 sq. ft. 85,000 hrs. 30,000 hrs 320,000 hrs. Actual Amount Actual Cost 425,000 sq. ft. 100,000 hrs. 30,000 hrs. 320,000 hrs. Direct materials P2,700,000 1,000,000 300,000 4,000,000 Direct labor Machine setups Mechanical assemblyUse the following alternatives to develop an incremental analysis choice table and answer the following questions. Alternative A Initial Cost - $15,000 Annual Revenue (Year 1-15) - $2500 Salvage Benefit (Year 15) - $2000 Alternative B Initial Cost - $25,000 Annual Revenue (Year 1-15) - $3500 Salvage Benefit (Year 15) - $5000 1. Determine the incremental rate of return IRRHigh-Low. Provide your answer as a percentage and round to the nearest hundredth. 2. Determine the internal rate of return for the higher cost alternative IRRHigh. Provide your answer as a percentage and round to the nearest hundredth. 3. Determine the internal rate of return for the lower cost alternative IRRLow. Provide your answer as a percentage and round to the nearest hundredth. Please answer all 3.