QUESTION 3 You head BETMARK's project selection department. Your department is contemplating three separate projects. BETMARK anticipates at least a 20% return based on historical data. Your financial analysts estimate that inflation will remain at 3 percent for the foreseeable future. Given the following data about each project, which Project should be BETMARK's top priority? Should BETMARK sponsor any of the remaining projects? If so, what should be the order of priority in terms of return on investment? Project: A Year 0 1 2 3 Project: B Year 0 1 2 3 4 Project: C Year 0 1 2 345 Investment K11, 250,000 Investment K5,625,000 Investment K1,687,000 Revenue Stream 0 1,125,000 5,625,000 7,875,000 Revenue Stream 0 1,687,500 1,687,500 1,687,500 1,125,000 Revenue Stream 0 337,500 562,500 1,125,000 1,125,000 3,375,000

1.Assuming you are facing with making a decision on a large capital investment proposal. the capital investment amount is $ Estimated the study period is years .The annual revenue at the end of each year is $ and the estimated annual year-end expense is $ starting in year Assuming a market value at the end year is $ and the benchmark rate is 10%, please answer the following questions: 1.Please design this investment project to fill the proper number in blank space to let the project is feasible in economics( 2.To give the cash flow chart of the project(

I need to know the Cash payback period for each project, the Net present value, the annual rate of return for each project and finally I need the projects ranked best to worse (1, 2, 3) on their cashpayback, net present value, and annual return. Finally I need to know which is the best project. Question 1 of 1 > E Pharoah Company is considering three long-term capital investment proposals. Each investment has a useful life of 5 years. Relevant data on each project are as follows. Project Bono Project Edge Project Clayton Capital investment $172,000 $182,000 $202,000 Annual net income: Year 1 14,700 18,900 28,350 2 14,700 17,850 24,150 3 14,700 16,800 22,050 4 14,700 12.600 13,650 5 14,700 9,450 12,600 5 14,700 9,450 12,600 Total $73,500 $75,600 $100,800 Depreciation is computed by the straight-line method with no salvage value. The company's cost of capital is 15%. (Assume that cash flows occur evenly throughout the year.)

Assuming monetary benefits of a construction project at $50,000 per year, one-time costs (initial investment) of $15,000, recurring costs of $35,000 per year, a discount rate of 10 per cent, and a 4-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

Please correct answer thes question

1. Calvulate the internal rate of return(IRR) of each project and based on this criterion. Indicate which project you would recommend or acceptance.

Profitability index. Given the discount rate and the future cash flow of each project listed in the following table, , use the PI to determine which projects the company should accept. ..... What is the Pl of project A? (Round to two decimal places.)

Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 13 percent, and that the maximum allowable payback and discounted payback statistic for the project are 2 and 3 years, respectively.  Time 0 1 2 3 4 5 6 Cash Flow -1,110 70 530 730 730 330 730   Use the payback decision rule to evaluate this project; should it be accepted or rejected?   Multiple Choice A. 1.10 years, accept B. 4.00 years, reject C. 2.70 years, reject D. 0 years, accept

A firm wants to select one new research and development project. The following table summarizes six possibilities. Considering expected return and risk, which projects are good candidates? The firm believes it can earn 5.5% on a risk-free investment in government securities (labeled as Project F).

Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 11 percent, and that the maximum allowable payback and discounted payback statistic for the project are 2 and 3 years, respectively.   Time  0 1 2 3 4 5 6   Cash Flow -1,040 140 460 660 660 260 660 Use the NPV decision rule to evaluate this project; should it be accepted or rejected?