Determine the FW of the following engineering project when the MARR is 13% per year. Is the project acceptable?Proposal AInvestment cost$10,000Expected lifeMarket (salvage) value6 years- 51,200Annual receiptsS7,000Annual expenses$4.000A negative market value means that there is a net cost to dispose of an asset.Click the icon to view the interest and annuity table for discrete compounding when the MARR is 13% per year.The FW of the following engineering project is S(Round to the nearest dollar.)According to the FW Decision Rule the projectv acceptable. i More InfoDiscrete Compounding; i=13%Unifonm SeriesSiriking,FundFactorTo Find AGiven FSingle PaymentCompoundAmountCapitalRecoveryFactorTo Find AGiven PA/PCompoundAmountFactorPresentWorth FactorTo Find PGiven FPIFPreseritWorth FactorTo Find PGiven 4PIAFactorTo Find FGiven 4FIATo Find FGiven PFIP1.13000.88501.00000.88501.66812.36121.00001.13001.27690.78312.13000.46950.59951.44290.69313.40690.29350.42351.63050.61334.84986,48038.32272.97450.20620.33621.84240.54283.51723.99754.42260.15430.28432.08200.48030.12020.25022.35260.425110.40470.09610.226182.65840.376212.7573479880.07840.20843.00400.332915.41575.13175.42620.06490.1949103.39460.294618.41970.05430.1843PrintDoneZ12 3456 709

Determine the FW of the following engineering project when the MARR is 13% per year. Is the project acceptable? Proposal A Investment cost $10,000 Expected life Market (salvage) value Annual receipts Annual expenses 6 years - $1,200 S7,000 $4,000 *A negative market value means that there is a net cost to dispose of an asset. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 13% per year. The FW of the following engineering project is S (Round to the nearest dollar.) According to the FW Decision Rule the project Vacceptable.

Determine the FW of the following engineering project when the MARR is 13% per year. Is the project acceptable? Proposal A Investment cost $10,000 Expected life Market (salvage) value Annual receipts Annual expenses 6 years - $1,200 S7,000 $4,000 *A negative market value means that there is a net cost to dispose of an asset. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 13% per year. The FW of the following engineering project is S (Round to the nearest dollar.) According to the FW Decision Rule the project Vacceptable.

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

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A small company wants to invest in Project A or B. The cash flows for both are shown below. Determine the payback period for each project assuming a MARR of 5% and suggest which project should be selected based on discounted payback period analysis.
Consider the three small mutually exclusive investment alternatives in the table below. The feasible alternative chosen must provide service for a 10-year period. The MARR is 12% per year, and the market value of each is 0 at the end of useful life. State all assumptions (repeatablity/co-terminated at 5 year study period) you make in your analysis. Which alternative should be chosen? A B Capital Investment PhP 2,000 PhP 8,000 PhP 20,000 Use IRR (FW equation) analysis. Annual revenues less expenses 600 2,200 3,600 Useful life (years) 5 5 10 ANSWER: IRRA = 15.24% ; IRRB = 11.65% ; IRRC = Blank 3% ; Choose alternative Blank 4 %3D %3D Do not use comma and any unit of measure. Use two decimal places in the Final answer.
An investment project costs $12,600 and has annual cash flows of $3,100 for six years Required: (a) What is the discounted payback period if the discount rate is zero percent? (Click to select) (b) What is the discounted payback period if the discount rate is 3 percent? (Click to select) (c) What is the discounted payback period if the discount rate is 20 percent? (Click to select) eBook & Resources eBook: 9.3. The Discounted Payback
The cash flow of an energy management opportunity is estimated as follows: Initial cost:$12,000 Energy saving:$2,700/year for 12 years Maintenance cost:$1,200/year for 12 years Salvage value:$2,500@the end of 12 years If the interest rate is 10%, 1) What is the simple payback period (SPP) (in years)? (a)5.2 (b)4.2 (c)4.6 (d)8.02) With an annual discount rate is 10%, what is the discounted payback period (in years)? (a)9.5 b) 15.1 (c)8.1 (d) 16.9 (e) 6.53)With an annual discount rate is 10%, what is the benefit-cost ratio (BCR)? (Hint: Benefit = Annual saving-Maintenance; Cost= Initial investment - Salvage)(a) 1.04(b) 0.80(c) 1.25(d) 1.12(e) 1.43
A project yields annual benefits of 75,000 for 10 years with 0 salvage value. It is designed to have a benefit cost ratio of 2. Determine the cost of the project if money is worth 10%
Please show complete steps all parts or skip it
Foc
Two mutually exclusive alternatives have the estimates shown below. Use annual worth analysis to determine which should be selected at an interest rate of 10% per year. Q $-44,000 R $-84,000 First Cost AOC per Year Salvage Value $-10,000 $-5,000 in year 1, increasing by $1,000 per year thereafter $4,000 $5,000 Life 2 years 4 years Alternative (Click to select) should be selected.
Net present value—unequal lives Project 1 requires an original investment of $375,000. The project will yield cash flows of $90,000 per year for 8 years. Project 2 has a computed net present value of $50,000 over a 6-year life. Project 1 could be sold at the end of 6 years for a price of $40,000. Use the Present Value of $1 at Compound Interest and the Present Value of an Annuity of $1 at Compound Interest tables shown below. Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.567 0.497 0.402 6 0.705 0.564 0.507 0.432 0.335 7 0.665 0.513 0.452 0.376 0.279 8 0.627 0.467 0.404 0.327 0.233 9 0.592 0.424 0.361 0.284 0.194 10 0.558 0.386 0.322 0.247 0.162 Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3…
Compute the discounted payback statistic for Project C if the appropriate cost of capital is 8 percent and the maximum allowable discounted payback period is three years. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Project C Time: 1 3 4 Cash flow: -$1,900 $840 $750 $790 $480 $280 Discounted payback period years Should the project be accepted or rejected?
Net Present Value—Unequal Lives Project 1 requires an original investment of $63,800. The project will yield cash flows of $13,000 per year for five years. Project 2 has a calculated net present value of $15,600 over a three-year life. Project 1 could be sold at the end of three years for a price of $56,000. Use the Present Value of $1 at Compound Interest and the Present Value of an Annuity of $1 at Compound Interest tables shown below. Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.567 0.497 0.402 6 0.705 0.564 0.507 0.432 0.335 7 0.665 0.513 0.452 0.376 0.279 8 0.627 0.467 0.404 0.327 0.233 9 0.592 0.424 0.361 0.284 0.194 10 0.558 0.386 0.322 0.247 0.162 Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690…
Calculate Net Present Value of minitor that costs $ 35,000.00 Amortization period 5 years with savings of 8000 per year with a hurdle rate of 12%, 5%. Which investment is more attractive?

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