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- Please give exact answer and excel steps Jeans LLC has a project with the following cash flows . Its required rate of return is 5 % , Year 012345 Cash Flow Project A -52,000.00 25,000.00 17,000.00 14,000.00 12,000.00 -3,000.00 What is the internal rate of retum ( IRR ) for this project ? options: a. 11.73859230479%b. 11.73962884992%c. 11.738592037872%d. 11.738591574995%e. 11.738592402818%f. 11.738672984783% Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.The table bellow shows the cash flow for an engineering project, if the reinvestment rate of return e is 6% per year, the external rate of rate (EER) is : EOY Cash flow $ 13000 14 -2000 5 to 10 8000 Select one: O a 14.3% O b. 17.6% O G 7% O d. 20.1% O e. 10%Salalah company management is considering two competing investment Projects A and B. Project A Project B 1000 Year Initial Investment 1000 1 275 300 275 300 275 300 4 275 275 300 5 300 DISCOUNT RATE 3.15% Using the net present value technique method
- Salalah company management is considering two competing investment Projects A and B.YearInitial Investment 12345Project A 8000 2750 2750 2750 2750 2750Project B 8000 3000 3000 3000 3000 3000DISCOUNT RATE 5.05%Q1) Use the information below and help the management in choosing the most desirable Project using all the following techniques:1) Payback Period Technique.2) Discounted Payback Period Technique.3) Net Present Value Technique4) Profitability Index Technique.Q2) Based on your solution or answer to question 1, comment as to which proposal is better and why?Salalah company management is considering two competing investment Projects A and B.YearInitial Investment 12345Project A 8000 2750 2750 2750 2750 2750Project B 8000 3000 3000 3000 3000 3000DISCOUNT RATE 5.05%Q1) Use the information below and help the management in choosing the most desirable Project using all the following techniques:1) Payback Period Technique.2) Discounted Payback Period Technique.3) Net Present Value Technique4) Profitability Index Technique. Q2) Based on your solution or answer to question 1, comment as to which proposal is better and why?Using the below informtion answer: 5.1 Payback Period of Project Tan (expressed in years, months and days). 5.2 Net Present Value of Project Tan.5.3 Accounting Rate of Return on average investment of Project Tan (expressed to two decimal places). INFORMATIONThe management of Mastiff Enterprises has a choice between two projects viz. Project Cos and Project Tan, each ofwhich requires an initial investment of R2 500 000. The following information is presented to you: PROJECT COS PROJECT TANNet Profit Net ProfitYear R1 130 000 80 0002 130 000 180 0003 130 000 120 0004 130 000 220 0005 130 000 50 000A scrap value of R100 000 is expected for Project Tan only. The required rate of return is 15%. Depreciation is calculatedusing the straight-line method.
- Evaluate the two alternatives A and B and decide the economic justified alternative using: Present worth method, Annual worth method, Future worth method I.R.R method E.R.R Method , E.R.R.R method M.A.R.R = 15%, the details of alternatives are shown in the table below Alternatives A B Investments $120,000 $155,000 Useful life (years) 15 20 Annual disbursements $25,000 $35,000 Annual revenues $45,000 $60,000 Salvage values $25,000 $30,000Valuation Problem Calculate NPV and IRR for the following investment. Initial investment = $1,000,000 machine, the project term is 6 years, ncf yr 1 = 387,160 ncf yr 2 = 459,460 ncf yr 3 = 465,322 ncf yr 4 = 481,725 ncf yr 5 = 506,617 ncf yr 6 = 269.200 and the discount rate is 12%.Alternatives A, B associated with a project have data as in the following figure, MARR=12% /year, Study period is 6 years. Find: Which alternatives should be selected? A B Capital investment $2800 $5000 Annual cash flow 1100 1400 Useful life (years) 3 6 Market value at end of useful life 0 0
- Refer to the data provided below for Proposal A Proposal AInitial investment $100,000Cash flow from operations Year 1 60,000Year 2 40,000Year 3 35,000Disinvestment -Life (years) 3Discount rate (for all proposals) 12% Compute the net present value for Proposal A ( for all 3 years) and consider this the likely scenario. Note: Round your answers to the nearest whole dollar. Use a negative sign to indicate a cash outflow.Q which project will be the best using (EAW). S Using the Benefit-Cost Ratio Method, Find what is the best alternative from the projects listed below if u know that (-10%) for both project. Details Initial investment (CU) Annual revenue (CU/year) Annual expense (CU/year) Project life (year) Investment due to replacement of some machines every 3 years. Salvage value (CU) Purchasing a new machine in the seventh year. 0 -113 000 Alternative 1 300 000 50 000 15 500 1 30 000 5 13 500 Q5:A person is planning a new business, the initial investment and cash flow pattern for a new business are shown below: Non Non 2 Year Cash flow (CU) The expected life of the project is five year.Find the rate of return for a new business. 30 000 3 30 000 Alternative 2 200 000 75 000 29 000 10 Non 4 30 000 22 000 13 000 5 30 000Two mutually exclusive investment altematives for implementing an office automation plan in an engineering design firm are being considered. If the firm's MARR is 10% per year, which alternative should be selected? Compare the altematives shown below on the basis of Incremental Analysis. Investment A Investment B Capital Investment, S 920,000 660,000 Annual Expenses, S/ yr. 167,000 133,000 Salvage value, S 410,000 330,000 Life, years 10 10 Determine IRR on incremental analysis, using 7% and 13% rates. Oa.86% Ob 11.1% 10.9% Od.95%