planning to install wind turbines to provide enhanced evaporation of reverse osmosis concentrate from its inland desalting plant. The company will spend Php1.5 million in year 1 and Php2 million in year 2. Annual maintenance is expected to cost Php65,000 per year through year 10. Determine the equivalent annual cost of the project in years 1 through 10 at an interest rate of 6% per year.

Vermont Technology is considering a project that would last for 3 years and have a cost of capital of 21.72 percent. The relevant level of net working capital for the project is expected to be $1,990.00 immediately (at year 0); $4,830.00 in 1 year; $15,200.00 in 2 years; and $0.00 in 3 years. Relevant expected revenue, costs, depreciation, and cash flows from capital spending in years 0, 1, 2, and 3 are presented in the following table. The tax rate is 50.00 percent. What is the net present value of this project? Year 0 Revenue $0.00 Costs $0.00 Depreciation $0.00 Cash flows from capital spending $-$7,130.00 Year 1 Year 3 $12,700.00 $12,700.00 $12,700.00 $4,020.00 $4,020.00 $4,020.00 $1,950.00 $1,950.00 $1,950.00 $0.00 Year 2 $0.00 $4,180.00 $3,195.22 (plus or minus $10) -$5,233.42 (plus or minus $10) -$8,995.62 (plus or minus $10) $5,002.99 (plus or minus $10) O None of the above is within $10 of the correct answer

A water Reservoir will have a first cost of Php 10,000,000,000, an annual maintenance cost of 35,000,000, and minor reconstruction costs of 3,000,000 every five years. What the capitalized cost of the reservoir at an interest rate of 10% per year?

A new project will cost $40,000 to fund today, and an additional $40,000 next year.  The device built will generate revenues of $17,000 starting in year 2 which increases by 4% each year until the device is sold at the end of year 12.  The device’s salvage value is $10,000.  $2,000 of maintenance is required every year.  What is the NPV of building this device, if the interest to borrow the funds is 15%?  (Round to nearest dollar)

Maroc Group of Companies (MGC) Ltd is considering an investment in an equipment costing GHȻ80,000. The equipment would attract a 25% annual written down allowance. The operating cash flows are expected to be as follows:   Year  GHC 1 30,000 2 40,000 3 20,000         The investment would also require additional working capital of GHȻ25,000 in the year of investment which will be recovered at the end of the project. The project is expected to have a useful life of three years after which the investment would be scrapped at a value of GHȻ50,000. The rate of tax on profits is 30%. The company’s cost of capital is 8%. As a financial manager of MGC: Required: 1. Estimate the cost of capital for MGC   2. Assess the viability of the investment using the Net Present Value (NPV) approach   3. Determine the Modified Internal Rate of Return (MIRR)

The initial investment in a government-funded city flood control system is $500,000. From the initial year to the endless future, materials, maintenance, electric power, and other running expenditures are estimated to reach $10,000 per year. Every five years, major repairs and rehabilitations will be carried out at a cost of $100,000. What is the project's equivalent capitalized cost if the interest rate is 10% per year?

A large company named High Hill Holding is considering a project. At the start of this project, the company will have to spend RM700 million to acquire necessary construction material and also paying the contractor with the following expected cash flows of RM200 million, RM370 million, RM225 million and RM700 million for Year 1, 2, 3 and 4 respectively. Assume a discount rate of 12% per annum, will the company consider the project and comment on the action to be taken. (b)

RealTurf is considering purchasing an automatic sprinkler system for its sod farm by borrowing the entire $30,000 purchase price. The loan would be repaid with four equal annual payments at an interest rate of 12%/year. It is anticipated that the sprinkler system would be used for 9 years and then sold for a salvage value of $2,000. Annual operating and maintenance expenses for the system over the 9-year life are estimated to be $9,000 per year. If the new system is purchased, cost savings of $15,000 per year will be realized over the present manual watering system. RealTurf uses a MARR of 15%/year for economic decision making. Based on a present worth analysis, is the purchase of the new sprinkler system economically attractive?

The annual maintenance costs of a tunnel, which is considered to have an infinite life, are worth 500 TL, the interest rate is accepted to be 5% per year, and the capitalized cost is estimated to be 15000 TL.What is the initial investment cost of the tunnel.

The Whilst Co. is analyzing a project that has projected sales of $189,400 and costs of $102,300. The project requires an investment in inventory of $15,000 plus another $28,000 in accounts receivable. Fixed assets of $80,000 are needed and will be depreciated straight-line over 5 years. Accounts payable will increase by $36,000. An interest expense of $11,000 will be incurred annually. The project has a life of 3 years. At the end of the three years, the equipment has an estimated market value of $26,000. The company requires a 14% rate of return and is in the 34% marginal tax bracket. What is the net present value of this project? $65,887 $68,023 $88,671 $91,425 None of the above.