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- Project S has a cost of $10,000 and is expected to produce benefits (cash flows) of $3,000 per year for 5 years. Project L costs $25,000 and is expected to produce cash flows of $7,400 per year for 5 years. Calculate the two projects’ NPVs, IRRs, MIRRs, and PIs, assuming a cost of capital of 12%. Which project would be selected, assuming they are mutually exclusive, using each ranking method? Which should actually be selected?Required information The following data is provided for a PPP project. To the Government $1.8 million now and $200,000 every 3 years To the People Benefits $85,000 per year beginning now Cost Disbenefits $5,000 per year Savings $130,000 per year Calculate the conventional benefticost ratios using an interest rate of 5% per year and an Infinite project perlod. The conventional B/C ratio is 0.4504 The following dats is provided for a PPP project. To the Government $1.8 million now and $200,000 every 3 years $130,000 per year To the People Benefits $85,000 per year beginning now Cost Disbenefits $55,000 per year Savings Calculate the modified benefit/cost ratios using an interest rate of 5% per year and an infinite project period. The modified B/C ratio is 04504Required information The following data is provided for a PPP project. To the Government $1.8 milion naw and $200,000 every 3 years To the People Benefits $90,000 per year beginning now Cost $25,000 per year Savings $115,000 per year Disbenefits Calculate the conventional benefit/cost ratios using an interest rate of 7% per year and an infinite project period. The conventional B/C ratio is
- The following data is provided for a PPP project. To the People To the Government Benefits $95,000 per year beginning now Cost $1.8 million now and $200,000 every 3 years Disbenefits $60,000 per year Savings $115,000 per year Calculate the conventional benefit/cost ratios using an interest rate of 12% per year and an infinite project period. The conventional B/C ratio is .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/yearDetermine the best alternatives for a government project with the following data: PROJECT A B C ANNUAL BENEFIT P250,000.00 P320,000.00 P350,000.00 ANNUAL COSTS P100,000.00 P135,000.00 p180,000.00 B/C RATIO 2.5 2.37 1.94 What is the best Project and its incremental ratio? a. A = 1.2 b. A = 2 c. B = 2.0 d. B = 1.18
- Required information The following data is provided for a PPP project. Benefits Disbenefits To the People $115,000 per year beginning now $60,000 per year The conventional B/C ratio is .08 Cost Savings Calculate the conventional benefit/cost ratios using an interest rate of 10% per year and an infinite project period. To the Government $1.8 million now and $200,000 every 3 years $105,000 per year3. To compare the feasibility of a project, the following information was provided. To the People To the Government Benefits $110,000 per year beginning now Cost $1.8 million now and $200,000 every 3 years $25,000 per year $100,000 per year Disbenefits Savings a) Calculate the conventional benefit/cost ratios using an interest rate of 6% per year and an infinite project period. b) Calculate the modified benefit/cost ratios using an interest rate of 12% per year and an infinite project period.A project is expected to produce cash inflows of $5,000 for seven years. What is the maximum amount that can be spent on costs to initiate this project and still consider the project as acceptable, given an 11% discount rate? Select one: Oa. $15,884.15 Ob. $23,340.13 Oc. $25,900.63 O d. $23,560.98 Oe. $26,984.02
- A public project is being considered by a local government that will cost $10M at the start and SSM at the end of years 1 through 5. The project is estimated to earn $20M at the end of year 2, $30M at the end of years 3 and 4, and $20M at the end of year 5. Assuming i = 10%. What is the benefit-to-cost ratio for this project? Draw a cash flow diagram for the costs and benefits annually.1. Assuming monetary benefits of a construction project at $50,000 per year during year 1, 2, 3 and 5 (not year 4), one-time costs (initial investment) of $15,000, recurring costs of $35,000 per year (every year), a discount rate of 10 per cent, and a 5-year time horizon, calculate the net present value (NPV) of an information system's costs and benefits. Calculate the overall return on investment (ROI) of the project. During which year does break-even occur?. Use the NPV template provided (modify to suit your answer) and clearly display the NPV, ROI, and year in which payback occurs. Write a paragraph explaining whether you would recommend investing in this project based on your financial analysis. Explain your answer referring to the NPV, ROI and payback for this project. Discount Rate (10%) Year 0 - 1.0000 Year 1 - .9091 Year 2 - .8264 Year 3 - .7513 Year 4 - .6830 Year 5 - .6209Moates Corporation has provided the following data concerning an investment project that it is considering: Initial investment $ 200,000 Annual cash flow $ 123,000 per year Expected life of the project 4 years Discount rate 10% Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided. The net present value of the project is closest to: (Round your intermediate calculations and final answer to the nearest whole dollar amount.)