6.30 For the alternatives shown, determine the sum ofthe cash flows in the Z-X difference column.First cost, $Annual operating cost, $/yearSalvage value, $Life, yearsSystem X-40,000- 12,0006,0003System Z-95,000-5,00014,0006

Given information: First cost of System X is -$40,000 and for Z is -$95,000 Annual operating cost of…

Answered: 6.30 For the alternatives shown,…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

Consider two mutually exclusive projects A and B: Cash Flows (dollars) Project Co C₁ A -39,000 28,200 B -59,000 42,000 C₂ NPV at 10% 28,200 42,000 +$ 9,942 +13,893 a. Calculate IRRs for A and B. Note: Do not round intermediate calculations. Enter Project A B IRR 41.98 % 36.05 %
The following table indicates the net cash flows of a capital asset: Year Net Cash Flow 0 $-159,000 1 $59,000 2 $59,000 3 $59,000 4 $59,000 Do not enter dollar signs or commas in the input boxes. Round your answer to 2 decimal places. Calculate the cash payback period using the formula method. Payback: Answer years
4
Cash Flow Asset End of year Amount Appropriate Required Return D 1 through 5 $1,500 12% 6 $8,500 By using cell references to the given datea and the function PV, Calculate the value of asset D.
Consider the following cash flows: Year 0 1 2 3 4 Cash Flow -$ 8,000 2,250 5,300 2,050 1,750 What is the payback period for the cash flows? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Payback period years M Prev 1 of 5 Next > tubi
with cashflow diagram
please tell me which is the best option and formulate why, thanks
D-78 Which of the following equations can be used to find the internal rate of return (i) for a project that hun initial investment of P, net annual cash flows of A, and salvage value of S after n years? (a) 0 = -P + AP/A, i%,n) + SP/A, i%, n) | (b) (Р — А)P/А, 1%, п) — SPIF, 1%, n) (с) — А %3D — РАР, %, п) — S(AF, i1%, п — 1) (d) 0 = -PF/P, i%,n) + A(F/A, i%, n) + S
For the cash flows below, use an annual worth comparison to determine which alternative is best at an interest rate of 1% per month.
Company Express S. A. asks you to construct cash flows for following three (3) investment projects, containing following information:PROJECT 1a. Sales (in ThCh$):- Year 1: 90,000- Year 2: 55,000- Year 3: 75,000- Year 4: 190,000b. Cost of sales is estimated at 53% of sales.c. Depreciation for year is ThCh$ 15,000 per period (period 1 to 3). In year 4 there is a sale of machinery that results in a gain on sale of non-current assets of ThCh$ 9,800. Total depreciation for year 4 is ThCh$ 12,500.d. Administrative expenses are equivalent to 17% of sales.e. In period 0 there is an investment of ThCh$ 58,000.f. There is credit financing of ThCh$ 32,000 which is amortized in equal parts of ThCh$ 8,000 per period with a financial expense of ThCh$ 3,700 per period.g. There is an investment in working capital of ThCh$ 24,000 in period 0, which is recovered in period 4.h. In period 4 there is an investment in land of ThCh$ 40,000.i. Income tax rate is 17%. Calculate: cash flow per period. Please…
Q1:Compare the alternatives below using future worth analysis at i = 8% per year using LCM. First cost, $ Annual operating cost, $ per year Salvage value, $ Life, years - 23,000 -30,000 -4,000 - 2,500 3,000 1,000 3 6
Given the cash flows and information in the table below. Which alternative do you choose (mutually exclusive)? MARR 6% Life (years) 4 A B D Initial Cost CF, years 1-4 PW B 11,000 13,500 14,000 8400 4000 4500 4880 3000 $13,860 $15,593 $16,910 $10,395 B/C 1.26 1.16 1.21 1.24 A-D B-D C-A 1.02 2.63 C-D В-А C-B B/C 1.33 1.02 1.16 0.69

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

6.30 For the alternatives shown, determine the sum of the cash flows in the Z-X difference column. First cost, $ Annual operating cost, $/year Salvage value, $ Life, years System X -40,000 -12,000 6,000 3 System Z -95,000 -5,000 14,000 6