need answer for this pls help asap Given four proposals for funding a new project with a 10OM limit on capital funding and the MARR isestablished at 12% per year.Project First CostEstimated Annual SavingsProject Life, Yearsw12M5M3X25M7.3M4Y45M12.1M660M9MUse the exact internal rate of return method to determine which of the four independent projectsshould be funded. Write the value of the acceptable project accordingly/in sequence (W/X/Y/Z).ANSWER for ALTERNATIVE 1: Blank 1ANSWER for ALTERNATIVE 2: Blank 2Blank 1 Add your answerBlank 2Add your answer

In order to determine the feasibility of the independent projects, we are required to use various…

Given four proposals for funding a new project with a 100M limit on capital funding and the MARR is established at 12% per year. Project First Cost Estimated Annual Savings Project Life, Years w 12M 5M 3 25M 7.3M 4 Y 45M 12.1M 6 60M 9M 8 Use the exact internal rate of return method to determine which of the four independent projects should be funded. Write the value of the acceptable project accordingly/in sequence (W/X/YIZ). ANSWER for ALTERNATIVE 1: Blank 1 ANSWER for ALTERNIATIVE 2: Rlank 2

Given four proposals for funding a new project with a 100M limit on capital funding and the MARR is established at 12% per year. Project First Cost Estimated Annual Savings Project Life, Years w 12M 5M 3 25M 7.3M 4 Y 45M 12.1M 6 60M 9M 8 Use the exact internal rate of return method to determine which of the four independent projects should be funded. Write the value of the acceptable project accordingly/in sequence (W/X/YIZ). ANSWER for ALTERNATIVE 1: Blank 1 ANSWER for ALTERNIATIVE 2: Rlank 2

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter26: Capital Investment Analysis

Section: Chapter Questions

Problem 3CMA

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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?
In an unrelated analysis, you have the opportunity to choose between the following two mutually exclusive projects, Project T (which lasts for 2 years) and Project F (which lasts for 4 years): The projects provide a necessary service, so whichever one is selected is expected to be repeated into the foreseeable future. Both projects have a 10% cost of capital. (1) What is each projects initial NPV without replication? (2) What is each projects equivalent annual annuity? (3) Apply the replacement chain approach to determine the projects extended NPVs. Which project should be chosen? (4) Assume that the cost to replicate Project T in 2 years will increase to 105,000 due to inflation. How should the analysis be handled now, and which project should be chosen?
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Net present value method, present value index, and analysis for a service company First United Bank Inc. is evaluating three capital investment projects by using the net present value method. Relevant data related to the projects are summarized as follows: Instructions 1. Assuming that the desired rate of return is 15%, prepare a net present value analysis for each project. Use the present value table appearing in Exhibit 2 of this chapter. 2. Determine a present value index for each project. (Round to two decimal places.) 3. Which project offers the largest amount of present value per dollar of investment? Explain.
Given four proposals for funding a new project with a 100M limit on capital funding and the MARR is established at 12% per year. Project First Cost Estimated Annual Savings Project Life, Years W 12M 5M 25M 7.3M 4 Y 45M 12.1M 60M 9M Use the exact internal rate of return method to determine which of the four independent projects should be funded. Write the value of the acceptable project accordingly/in sequence (W/X/Y/Z). ANSWER for ALTERNATIVE 1: Blank 1 ANSWER for ALTERNATIVE 2: Blank 2 Blank 1 Add your answer Blank 2 Add your answer
Given four proposals for funding a new project with a 100M limit on capital funding and the MARR is established at 12% per year. Project First Cost Estimated Annual Savings Project Life, Years 12M 5M 3 25M 7.3M 4 Y 45M 12.1M 60M 9M 8. Use the exact internal rate of return method to determine which of the four independent projects should be funded. Write the value of the not acceptable project accordingly/in sequence (W/X/Y/Z). ANSWER for ALTERNATIVE 1: Blank 1 ANSWER for ALTERNATIVE 2: Blank 2
Compute NPV and IRR if the required return is 12 percent. Year CashFlow 0 -8,000 1 0 2 5,500 3 3,200 What is the “cross-over” rate of the following projects? Year Project A Project B 0 -1,400 -800 1 950 600 2 950 600 Sketch the NPV profile of the following project and show the multiple IRRs. Note that the project has two IRRs and the first one is at 25 percent. Year CashFlow…
NEED HELP ASAP!! THANK YOU!! Given four proposals for funding a new project with a 100M limit on capital funding and the MARR is established at 12% per year. Project First Cost Estimated Annual Savings Project Life, Years W 12M 5M 3 X 25M 7.3M 4 Y 45M 12.1M 6 Z 60M 9M 8 Use the exact internal rate of return method to determine which of the four independent projects should be funded. Write the value of the acceptable project accordingly/in sequence (W/X/Y/Z). ANSWER for ALTERNATIVE 1: Blank 1 ANSWER for ALTERNATIVE 2: Blank 2
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