1) Why did you make the choices you did? What are the costs and benefits of these choices? 2) What will you need to do to ensure that you carry out this plan to fidelity? 3) What potential pitfalls do you need to avoid? 4) What obstacles, personal and systemic, might you face trying to implement your plan? PLEASE HELP AND ANSWER THESE QUESTIONS.
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1) Why did you make the choices you did? What are the costs and benefits of these choices?
2) What will you need to do to ensure that you carry out this plan to fidelity?
3) What potential pitfalls do you need to avoid?
4) What obstacles, personal and systemic, might you face trying to implement your plan?
PLEASE HELP AND ANSWER THESE QUESTIONS.
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- Create a complete sinking fund schedule and calculate the total payments and interest earned needed for a fund of $9,000 one year from now. The fund will receive deposits made at the end of every three months and earns 5% compounded quarterly. Payment Number 1 2 3 4 Total Payment Amout at End ($) (PMT) Number Number Number Number Total PMT = Number Interest Earned or Accrued ($) (INT) Number Number Number Number Total INT Number Principal Balance Accumulated at End of Payment Interval ($) (BAL) Number Number Number NumberA capital budgeting project has a net investment of $550,000 and is expected to generate net cash flows of $200,000 annually for 7 years. What is the payback period? 5 years 25 years 55 years 75 yearsCourse Title: Principle Of Healthcare Finance Problem: Better Health Inc. is evaluating two capital investments, each of which requires an up-front (Year 0) expenditure of $1.5 million. The projects are expected to produce the following net cash inflows: Year Project A Project B 1 $ 500,000 $2,000,000 2 1,000,000 1,000,000 3 2,000,000 600,000 What is each project's IRR? What is each project's NPV if the opportunity cost of capital is 10 percent? 5 percent? 15 percent?
- 7 Present work in Excel Consider the following: Financed amount: $385,000 Cost of funds: 7.25% (interest rate) 30-year amortization Calculate (round to nearest dollar): Annual payment amount (this is monthly payment x 12 --- then rounded to nearest dollar) Amount of 'Interest paid' during year 3 (rounded to nearest dollar) Amount of 'Principal paid' during year 3 (rounded to nearest dollar)9.Capital budgeting Mason Co. is evaluating two alternative investment proposals. Below are data for each proposal: Initial investment cost Estimated useful life... Estimated salvage value. Estimated annual net income. Proposal A $84,000 $1 due in 5 years, discounted at 12%.. $1 due in 6 years, discounted at 12%.. $1 received annually for 5 years, discounted at 12%.. $1 received annually for 6 years, discounted at 12%.. 5 years $ 4,000 $ 8,200 The following information was taken from present value tables: (a) Annual net cash flow: (b) Payback period (in years): (c) Average investment: (d) Return on average investment: (e) Net present value: All revenue and expenses other than depreciation will be received and paid in cash. The company uses a discount rate of 12% in evaluating all capital investments. Compute the following for each proposal (round payback period to the nearest tenth of a year and round return on average investment to the nearest tenth of a percent): Proposal A $…An investment center in Shellforth Corporation was asked to identify three proposals for its capital budget. Details of those proposals are as follows. Capital Budget Proposals Capital required Annual operating return $ 96,000 $ 60,000 20,400 $ 180,000 16,200 24,960 Shellforth uses residual income to evaluate all capital budgeting projects. Its minimum required return is 10 percent. a-1. Assume you are the investment center manager. Calculate the residual income for each project? a-2. Which project do you prefer? b-1. Assume your investment center's current ROI is 18 percent and that the president of Shellforth is thinking about using ROI for the investment center's evaluation. Calculate the ROI for each project? b-2. Would your preferences for the projects listed change? Complete this question by entering your answers in the tabs below. Reg A1 Req A2 Req B1 Req B2 Assume you are the investment center manager. Calculate the residual income for each project? Project A Project B Project…
- 1 Year Plan ☐ Projected Income ☐ Savings Goal ☐ Monthly Budget Bank Accounts and Lines of Credit First/Small Scale InvestmentsNeed help please show all work neatly. Thanks A four-year life project has an initial capital expenditure of $3,000 and annual operating costs beginning at the end of the year 1 of $2,000. At the end of the years of 2, 3, and 4 the project receives $7,000 as income. Assume that the cash flows given are in today dollars, and that incomes are escalated at 5%, costs are escalated at 6%. and inflation is 3%. Calculate the IRR in constant dollar. O 57% O 25% O 34% O 15%Basic Capital Budgeting Techniques Answer each independent question, (a) through (e).a. Project A costs $5,000 and will generate annual after-tax net cash inflows of $1,800 for 5 years.What is the payback period (in years, rounded to 2 decimal places) for this investment under theassumption that the cash inflows occur evenly throughout the year?b. Project B costs $5,000 and will generate after-tax cash inflows of $500 in year 1, $1,200 in year2, $2,000 in year 3, $2,500 in year 4, and $2,000 in year 5. What is the payback period (in years,rounded to 2 decimal places) for this investment assuming that the cash inflows occur evenlythroughout the year?c. Project C costs $5,000 and will generate net cash inflows of $2,500 before taxes each year for 5years. The firm uses straight-line depreciation with no salvage value and is subject to a 25% taxrate. What is the payback period (in years, and rounded to 2 decimal places) under the assumptionthat all cash inflows occur evenly throughout the…
- 5. A scholarship fund pays out 50,000 annually beginning n years from now. To make this go according to plan, annual deposits of 10,000 are made starting today. The credits interest at an annual effective rate of 3% for the first n years and 6.881052981% thereafter. Find n.With interest at 10%, what is the benefit-cost ratio for this government project? Initial Cost $243,606 Additional costs at the end of $32,572/year year 1 and year 2 Benefits at end of year 1 and year 2 $0/year Annual benefits at end of year 3 through year 10 Enter your answer as follow: 12.34 $90,556/year8. The director of capital budgeting for Big Sky Health System, Inc. has estimated the following cash flows for a new service and has a cost of capital of 8%. What is the project's MIRR? Year 0 123 Annual Cash Flows $ (125,000) 75,000 55,000 25,000 SASSAS $ 2 $ $ Choice: 11.2% Choice: 16.9% Choice: 13.3% Choice: 9.5% Project Cost of Capital 8%