Compute the missing information pertaining to each investment proposal. (Round your percentage answer to 1 decimal place (i.e., 0.123 to be entered as 12.3).)
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- The following information Company: available for a potential investment for Rose Initial investment P80,000 Net annual cash inflow 20,000 Net present value 36,224 Salvage value 10,000 Useful life 10 yrs. The potential investment's profitability index is A. 2.50 B. 2.85 C. 4.00 D. 1.45Information for two alternative projects involving machinery investments follows: Project 1 Initial investment Salvage value Annual income $ (128,000) Ө Project 2 $ (98,000) 18,000 14,080 11,600 a. Compute accounting rate of return for each project. b. Based on accounting rate of return, which project is preferred? Complete this question by entering your answers in the tabs below. Required A Required B Compute accounting rate of return for each project. Project 1 Project 2 Numerator: Accounting Rate of Return Denominator: Required A Required B Based on accounting rate of return, which project is preferred? Based on accounting rate of return, is preferred. = Accounting rate of returnFoz Co. is considering four investment proposals (A, B, C, and D). The following table provides data concerning each of these investments: Compute the missing information pertaining to each investment proposal. (Round your percentage answer to 1 decimal place. Omit the "$" & "%" signs in your response.) A B C D Investment cost $ 48,000 $ 30,000 $ 49,000 $ Estimated salvage value 8,000 5,000 2,000 Average estimated net income 5,000 5,600 4,500 Return on average investment % 24 % 20 % 20 %
- You are given the following data for a project that is to be evaluated using the APV method. Year EBIT CAPEX 0 O $201.765 O $193,822 O $185,617 O $222,872 O $213,918 1 $127.000 $60,000 2 Depreciation Increase in NWC Year-end net debt $80,000 Cost of net debt = 8% Unlevered cost of capital = 11.8% Corporate tax rate = 30% Calculate the total value of the project at t = 0. using the APV method. $72,000 $50,000 $100,000 $133,000 $40,000 $80,000 $60,000 $140,000 3 $138.500 $10,000 $84,000 $30,000 $140,000Company A has provided figures for two investment projects, only one of which may be chosen. These are the calculations based on the figures: Payback Period The Accounting Rate of Return / Return on Capital Employed Net Present Value Project A 2 years 4 months 27.08% £63,705 Project B 2 years 7 months 39.47% £74.971 Analyse and provide recommendations as to what project needs to be chosen based on the calculations above.Using the following two relationships: AW = CR + A of AOC CR = -P(A/P,i,n) + S(A/F,i,n) %3D Calculate the Annual Worth (AW) based on the data for the following project: Corporate MARR = 10% Initial Investment Cost $1,000,000 Anticipated Project Life = 10 years Salvage Value at the end of 10 years $100,000 Annual Cost of Operation %3D $50,000 10% Compound Interest Factors
- Dock Company is considering a capital investment in machinery: E (Click the icon to view the data.) 8. Calculate the payback. 9. Calculate the ARR. Round the percentage to two decimal places. 10. Based on your answers to the above questions, should Dock invest in the machinery? 8. Calculate the payback. Payback years - X Data Table Initial investment $ 1,500,000 Residual value 350,000 Expected annual net cash inflows 500,000 Expected useful life 4 years Required rate of return 9% Print DoneAn oil and gas company considers five sizes of pipe for a new pipeline. The costs for each size are provided below. Cash flow item Initial investment ($) Annual operating & maintenance cost (AOC) ($) Salvage value ($) Annual income ($) Lifetime, years 140 a) Payback period b) Rate of return (ROR) 3200 600 1000 1000 10 160 4000 950 1250 1500 10 Pipe size, mm c) Discounted profit to investment ratio (DPI) d) Annual worth criterion (AW) 200 5500 1000 1450 2000 10 240 6000 1150 700 2250 20 300 7500 1200 700 3250 If all pipes will last over the provided lifetimes and the company's minimum attractive rate of return (MARR) is 10%, which size of pipe would you choose according to the: 20The accounting rate of return on the average cost of investment (ARRAC) is 19%. The project has a salvage value of P 8,000. The average cost of investment is P326,000 What is the accounting rate of return on the original cost of investment (ARROC)?a. 9.1%b. 9.3%c. 9.6%d. 9.9%
- The following data are accumulated by Watershed Inc. in evaluating two competing capital investment proposals: Project A Project Z Amount of investment $64,000 $48,000 Useful life 4 years 5 years Estimated residual value 0 0 Estimated total income over the useful life $8,960 $12,600 Determine the expected average rate of return for each project. Round your answers to one decimal place.Bridgeport Company is considering two capital expenditures. Relevant data for the projects are as follows: Project Initial investment Annual cash inflow Life of project Salvage value A $260,084 $46,590 Project A 7 years $0 Project B Click here to view the factor table. Bridgeport Company uses the straight-line method to depreciate its assets. B $278,237 Calculate the internal rate of return for each project. (For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 1.25125. Round answers to O decimal places, e.g. 15%.) $44,540 9 years $0 Internal rate of return % %The following data are accumulated by Watershed Inc. in evaluating two competing capital investment proposals: Project A Project Z Amount of investment $64,000 $84,000 Useful life 4 years 9 years Estimated residual value 0 0 Estimated total income over the useful life $8,960 $43,470 Determine the expected average rate of return for each project. Round your answers to one decimal place. Project A % Project Z %