Assume a cost improvement project has only a firs cost of $100,000 and a monthly net savings, M There is no salvage value. Graph the project's IRF for payback periods from 6 months to the project's life of N years. The firm accepts projects with a 2 year payback period or a 20% IRR. When are these standards consistent and when are they not? (a) Assume that N = 3 years.

Use annual worth

please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly

1. A pharmaceutical company that manufactures ascorbic acid tablets is investigating two production options that have the estimated cash flows shown ($10 million units). Which one should be selected based on a present worth analysis (in million units) at 10% per year? In- outsourced house Initial Investment -30 Annual cost, $ per year 24 -5 -2 Annual Revenue, $ per 13 year 2 N/A Salvage Value, $ Life

Q1:A person wants to have (5000 CU) pay for his education at the end of each year for (6 years). If the bank rate of interest is (11.5%), how much money has to be deposit at present. Q2:A company invests in one of three alternatives, the life of all alternatives is estimated to be (5 years) with the following investments, annual returns, and salvage value: Alternatives 3 200000 CU 70000 CU 50000 CU Details Alternatives 1 Alternatives 2 Investment 150000 CU 175000 CU Annual equal return 60000 CU 70000 CU 15000 CU 25000 CU Salvage value Determine the best alternative based on Net Present Worth Comparison (NPW) by assuming i=10%. نوں

A sportswear factory has two alternative machines for producing jerseys. Costs are shown below. Minimum acceptable rate of return is 8%.What is the annual cost for machine Y?

You have been asked to perform a sensitivity analysis on a plant modernization plan. The initial investment is $30,000. Expected annual savings is $13,000. Salvage value is $7,000 after a 7 year planning horizon. The MARR is 12%.   Determine the AW if the annual savings change by the following percentages from the initial estimate: b. -80%c. -60%d. -40%e. -20%f. +20%g. +40%h. Determine the percentage change in net annual savings that causes a reversal in the decision regarding the attractiveness of the project

What is MARR value?

Alternative X Alternative Y Capital Investment Useful life $5,000 20 $200 $6,000 15 $800 in year 10 and decreasing by a constant amount of $50 per year Annual Expenses thereafter Salvage Value $1,000 (a) What is the annual worth (AW) of alternative X? Show all the steps of calculation. (4 marks) (b) What is the annual worth (AW) of alternative Y? Show all the steps of calculation. (5 marks) (c) Based on your answers in part (a) and (b), explain which alternative should be selected. (2 marks) LE10 Mec)

Q.1 Find the capitalised cost of an investment at 15% interest rate. The investment has initial cost $200000 and operating annual cost is $40000 for life time.