**Comparative Investment Analysis of Two Projects**Tempura, Inc. is evaluating two potential projects. The details of each project are provided below:### Project A:- **Investment Required:** $54,000- **Estimated Annual Receipts:** $23,000 for 20 years- **Estimated Annual Costs:** $12,500- **Net Annual Receipts:** $23,000 - $12,500 = $10,500### Project B:- **Investment Required:** $77,000- **Estimated Annual Receipts:** $31,000 for 20 years- **Estimated Annual Costs:** $18,000- **Net Annual Receipts:** $31,000 - $18,000 = $13,000Both projects have:- **Zero Salvage Value at the end of 20 years**- **Minimum Acceptable Rate of Return (MARR):** 9.5% per year**Objective:**Calculate the present worth (PW) of each project using the provided TVM Factor Table Calculator and given MARR.**Procedure:**1. Click on the provided link to access the TVM Factor Table Calculator.2. Input the relevant data for Project A and Project B.3. Calculate the present worth of the net annual receipts for each project considering their initial investments and MARR.### Question:What is the present worth of each project?- **Project A: $**- **Project B: $****Note:**Carry all interim calculations to 5 decimal places and round the final answer to the nearest dollar. The tolerance for the answers is ±20.**Feedback:**Your answer is incorrect. Please revise the calculations and attempt again.

Answered: Image /qna-images/answer/84908117-27ac-491e-97b7-4e3f16cea220.jpg

Answered: Tempura, Inc., is considering two…

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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Your firm is contemplating purchasing a new piece of equipment that would allow for additional production. Project details: Equipment cost $82,000, installation cost $8,000. MACRS 3 year. EBITDA has been calculated to be $30,000 year 1, $50,000 year 2, $30,000 year 3. The equipment can be sold at the end of the 3 years for $10,000. Tax rate 30% WACC 10% 1. What is the NPV and IRR for this project. 2. If WACC increases to 12% what will be the NPV and IRR for the project?
Orange Tech. can make a maximum of 2743 webcams per month and sell them for $209 each. The company's fixed costs per month are $143,660, and the variable costs are $99 per unit.a) Compute the contribution margin per unit. CM=CM=$ b) Compute the contribution margin rate (round off to the nearest percent). Hint: Contribution margin rate is CM(%)=CMSPCM(%)=CMSP CM(%)=CM(%)= % c) Calculate the number of webcams the company needs to sell per month to break-even. xBE=xBE= webcams d) Calculate the break-even in dollars (round off to the nearest cent). TRBE=TRBE= $ e) Calculate the break-even as a percent of capacity (round off to the nearest percent). %
6. A new Ford Escape can be leased for $119/month for 24 months, with $2200 due at signing. Assuming no additional charges will occur, what will be the total cost of this lease?
Scenario 1: Start working with a $10,000 bonus and then have your boss pay you 10,000 for 3 full weeks including weekends. Scenario 2: Start working with a savings account with a .25 cents in it and your boss double it each day for 3 full weeks including weekends. Question 1: Calculate each scenario individually. Question 2: Calculate the total sum collected by both scenarios at the end of the 3 weeks. Clearly identify the value in each account at the end of 3 weeks. (Hint: Create a table of values for both functions and then add.)
Teal Inc., manufactures ice tea and would like to increase its market share in the North. In order to do so, Teal has decided to locate a new factory in the Cedar Rapid area. Teal will either buy or lease a site depending upon which is more advantageous. The site location committee has narrowed down the available sites to the following three buildings: Building A: Purchase for a cash price of $1,533,000, useful life 26 years. Building B: Lease for 26 years with annual lease payments of $126,000 being made at the beginning of the year. Building C: Purchase for $1,965,000 cash. This building is larger than needed; however, the excess space can be sublet for 26 years at a net annual rental of $20,700. Rental payments will be received at the end of each year. Teal Inc. has no aversion to being a landlord. Click here to view factor tables In which building would you recommend that Teal Inc. locate, assuming a 12% cost of funds? (Round factor values to 5 decimal places, e.g. 1.25124 and…
I. A producer of felt-tip pens has received a forecast of demand of at least 50,000 pens for the coming month from its marketing department. Fixed costs are $20,000 per month, and variable costs are 25 cents per pen. a. Find the break-even quantity the company must produce if pens sell for $1.50 each. b. Find the quantity to be produced to realize a profit of $20,000. 70
Suppose that with a certain phone company, an international long distance phone call from Canada to Brazil costs $0.90 for the first minute (up to and including 60 seconds), plus $0.50 for each additional minute or part of a minute. Note: "Part of a minute" means that if a new minute is started even just by one second, a full minute is charged. For example, a 5 min 1 sec phone call costs the same as a 5 min 50 sec phone call and the same as a 6 min O sec phone call. Suppose C (t) is the function that gives the cost of making a t minute long phone call. On a piece of paper, sketch a graph showing C (t) (with C on the y-axis and t on the a-axis). Then use your graph to evaluate each of the following: (Write DNE for undefined.) C (2.5) [ Select ] C (4) = [ Select ] lim C (t) [ Select ] 2+3.1 lim C (t) [ Select ] lim C (t) = [ Select ] lim C (t) = [ Select ]
A dealership advertises a sale price of $45 899 (including taxes) for a new truck. The salesman offers Darrel two options • Option 1: Lease o down payment of $5000 o monthly payments of $577.50 (including taxes) for 4 years o residual value of $15 000 after 4 years o allowable limit of 20 000 km/year and $0.15 for each additional kilometre Option 2: Purchase down payment of $5000 o loan with monthly payments, compounded monthly for 4 years at an annual rate of 4.9% a) Darrel estimates that he will drive 30 000 km/year. If he chooses Option 1, how much will he pay in total if he returns the truck at the end of the lease? b) What will be the total price of the truck, including the down payment, if Darrel decides to purchase it according to Option 2?
Steven and Donna have been married for 35 years. Both are in great health, but they feel it is time that they start planning for their future health needs. Steven is 60 years old, and Donna is 61 years old. They have been approached by a long-term care insurance salesperson who is offering the following insurance product: . . . . Annual maximum benefit: $67,200 or 80% of annual cost, whichever is less. Daily maximum benefit: $187 or 80% of daily cost, whichever is less. Billing cycle: 360 days. Premium for policy with 180-day elimination period: $3,248. Premium for policy with 90-day elimination period: $3,696. Premium for policy with 30-day elimination period: $4,256. Steven and Donna are interested in possibly purchasing one of these policies. Use the following information to help them analyze which policy may be the best alternative, The current annual cost of a good nursing care facility in their area is $91,440, They have $28,000 saved in a money market savings account, $11,200 in…
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