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- Whats the paybck period & discounted payback period for a project with costof 2OO,OOO that generates an annualcash infloww of 3O,OOO for the first 2years, 4O,OOO per year for years 3to5, & 5O,OOO per year for years 6through9?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 0Determine the B/C ratio for the following project.First Cost = P100, 000Project life, years = 5Salvage value = P10, 000Annual benefits = P60, 000Annual O and M = P22, 000Interest rate= 15%
- 0 ave servie if for 20 years with o savage value, Which equipment should be the rate of retum is 10 % and all equipment shown in the following table. slected using the incrementa bencfitcostanalysisSuppose you have the following two investment projects with operating costs and revenues over 5 years: Year Project A Project B Revenues Operating Costs Revenues Operating Costs (OMR) (OMR) (OMR) (OMR) 2025 12000 5000 50000 33000 2026 12500 5300 52000 34500 2027 13500 5700 53800 35000 2028 13800 6000 54000 36000 2029 14200 6200 45500 36500 2030 15000 6500 55000 37000 If the investment cost is OMR25000 for project A and OMR155000 for project B, determine which project is the best choice using ARR and IRR methods (Interest rate is 10%).(Ex) The initial investment cost for project A is 200 000 $ at probability 100%. the annual revenue is 50 000$ at probability 30% , 100 000 at probability 50% and 125 000 $ at 20% the life of project is 2 year at probability 20%, 3 year at 20% 4 year at 50% ,5 year at 10%, find expected present worth if i=9 % per year.
- Calculate the annual benefits (A) If G = 200$, n = 5 years and i = 11%. Select one: a. 395$ O b. 385$ O c. 358$For a project with: F.C. = JD 4000 Extra cost at the end of the 4 year = 2500 Annual income = 2000 n= 5 years a) Calculate the IRR (i*) b) is it acceptable, if MARR=10% per year?If a project requires a $1000 initial investment, it returns $500 at the end of the first year, $600 at the end of the second year, $700 at the end of the third year, and -$500 in the fourth year. Calculate MIRR for this project if the discount rate is 9% O 10.45% O 14.77% 15.96% O 11.99%
- The table below lists four mutually exclusive projects, Which project should be selected based on the equivalent annual net cost? Assume a 10% discount rate? Project A Project B Project C Project D Total Operating Cost (PV) Project D Project C Project A Project B Project life (years) 44000 37500 36000 32000 978 6 5Kamty Karzis evaluating a project (Project A that costs S325.000 and is expected to generate 5200.000 for the next two years. They are ao evaluatinga project (Project Bi that costs $350.000 and is expected to generate $200.000in the first vear and $230.000 in the second year. Komfysrequired rate of tetarnfor both projects is 13.3% Upload with the following caklations Calulate the NV for both proects Caulate the ER lor both proects Cate theback pertor tohproiects Cakulatehe dacnted ptack priod for both projects Ceuate theos rateproject requires $ 80,000 md produces a A on initial outlay of return of $20,00 end of year 1 , $ 30000 at the at the end Of If the at the end of year 2, ond $R Determine te Value of 10 % . R year 3. internal rate of return
