10-31 An energy efficiency project has a first cost of G $400,000, a life of 10 years, and no salvage value. Assume that the interest rate is 10%. The most likely value for annual savings is $50,000. The optimistic value for annual savings is $80,000 with a probabil- ity of 0.2. The pessimistic value is $40,000 with a probability of 0.25. (a) What is the expected annual savings and the expected PW? (b) Compute the PW for the pessimistic, most likely, and optimistic estimates of the annual savings. What is the expected PW? (c) Do the answers for the expected PW match? Why or why not?

A project with 10-year life requires an initial investment of $30000. The annual cost of the project is $6300 while the annual revenue is $17500. There will be an additional investment of $8000 in year 5. Assume that the salvage value at the end of usage life is $7500. At which MARR value, the project is economically viable? If necessary, you can choose more than one options, O a. 50% O b. 40% O c. 30% Od. 20%

A new engineer is evaluating whether to use a higher-voltage transmission line. It will cost $250,000 more initially, but it will reduce transmission losses. The optimistic, most likely, and pessimistic projections for annual savings are $25,000, $20,000, and $13,000. The interest rate is 6%, and the transmission line should have a life of 30 years. (a) What is the present worth for each estimated value? (b) Use the range of estimates to compute the mean annual savings, and then determine the present worth.(c) Does the answer to (b) match the present worth for the most likely value? Why or why not?

An investment that costs $25,000 will produce annual cash flows of $5,000 for a period of 6 years. Further, the investment has an expected salvage value of $3,000. Given a desired rate of return of 12%, the investment will generate a (Do not round your PV factors and intermediate calculations. Round your answer to the nearest whole dollar): Multiple Choice negative net present value of $2,923. negative net present value of $1,520. negative net present value of $25,000. positive net present value of $20,557

Consider a project with a 3-year life. The initial cost to set up the project is $100,000. This amount is to be linearly depreciated to zero over the life of the project and there is no salvage value. The required return is 16% and the tax rate is 34%. You've collected the following estimates: Base case Pessimistic Optimistic Unit sales per year (Q) 7,000 5,000 9,000 Price per unit (P) 50 40 60 Variable cost per unit (VC) 20 35 15 Fixed costs per year ( FC) 30,000 50,000 20,000 What is the annual cash flow from assets in the base case? What is the NPV in the base case? What is the NPV in the pessimistic case? What is the NPV in the optimistic case?

The expected average rate of return for a proposed investment of $6,000,000 in a fixed asset, using straight-line depreciation, with a useful life of 20 years, no residual value, and an expected total net income of $12,000,000 over the 20 years is: The answer is 20%. How did they get 20%?

Pls solve it quickly !!

Coronado, Inc. is considering purchasing equipment costing $39000 with a 7-year useful life. The equipment will provide cost savings of $9000 and will be depreciated straight-line over its useful life with no salvage value. Coronado Inc. requires a 11% rate of return. What is the approximate net present value of this investment? Period 7 O $30000 O $4812 O $3408 O $2076 9% 5.033 Present Value of an Annuity of 1 10% 4.868 11% 4.712 12% 4.564 13% 4.423 16% 4.039

Hh2. Account

A project that will provde annual cash flows of $3,000 for nine years costs $10,000 today. a. At a required return of 10 percent, what is the NPV of the project? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. At a required return of 28 percent, what is the NPV of the project? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. c. At what discount rate would you be indifferent between accepting the project and rejecting it? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. a. NPV b. NPV c. Discount rate %