The American Pharmaceutical Company (APC) has a policy that all capital investments must have a three-year or less discounted payback period in order to be considered for funding. The MARR at APC is 7% per year. Is the above project able to meet this benchmark for funding? Click the icon to view the interest and annuity table for discrete compounding when the MARR is 7per year. .... The payback period is years. (Round to the nearest whole number.) End of Year 0 1 2 3 4 5 6-8 Cash Flow - $275,000 - $25,000 $50,000 $180,000 $235,000 $330,000 $95,000

Jane has $240,000 to invest and is considering the following two investment opportunities.Investment A requires an initial investment of $240,000 and promises to return $57,040 every year for 5 years.Investment B requires an initial investment of $216,000 and is expected to return $51,200 every year for 5years. If Jane’s MARR is 5% per year compounded annually, which investment should she choose, if any?

A Philippine Society of Civil Engineers is planning to put up its own building, and two proposals (5-year project) are being considered. The money is worth 20% compounded monthly. PROPOSAL A. The construction of the building to cost P246,933.00 at the end of 4 years and P162,751.00 for the next year. PROPOSAL B. The construction of the building now, to cost P55,016.00, P184,773.00 at the end of 4 years and an extension to be added a year after, to cost P92,348.00. Determine the following: 1. Equivalent present cost of Proposal A. 2. Equivalent present cost of Proposal B.

You have received the proposal to invest $1,000,000 in exchange for receiving income of $75,000 at the end of the first month that would decrease 0.3% each month starting from the 2nd month. Expenses are estimated at $25,000 at each end of the month, starting from the 1st month. Assume that the proposal will last 5 years and that the minimum acceptable rate of return (m) is 1.5% per month. What does the Present Value criterion recommend? Show your work. If flow patterns are found (uniform, arithmetic, exponential), use factors.

Caduceus Company is considering the purchase of a new piece of factory equipment that will cost $565,000 and will generate $135,000 per year for 5 years. Calculate the IRR for this piece of equipment. For further instructions on internal rate of return In Excel, see Appendix C.

Problem #2 Solve for the following: 1) Present worth equivalence 2) Annual worth equivalence spread from years 1 to 10 3) Future worth equivalence at the end of year 8 4) Future worth equivalence at the end of year 10 i= 10% 10 A = $3000 P=?

An industrial firefighting truck costs $100,000. Savings in insurance premiums and uninsured losses from the acquisition and operation of this equipment is estimated at $60,000/yr. Salvage value of the apparatus after 5 yrs. is expected to be $20,000. A full-time driver during operating hours will accrue an added cost of $10,000/yr. What would the rate of return be on this investment? @ 40% present worth @ 50% present worth

An engineer planning for her retirement will deposit 10% of her salary each year into a stock found. The initial balance in her stock found (year 0) is $20,000. If her salary this year is $120,000 (end of year 1) and she expects her salary to increase by 5% each year, what will be the future worth of the found after 25 years if it earns 15% per year? $4,202,290.77 $5,480,462.35 O $5,315,867.58 O $4,138,818.64 O $3,543,911.72

The city of Oak Ridge is considering the construction of a three kilometer​ (km) greenway walking trail. It will cost $1,000 per km to build the trail and $320 per km per year to maintain it over its 23​-year life. If the​ city's MARR is 10​% per​ year, what is the equivalent uniform annual cost of this​ project? Assume the trail has no residual value at the end of 23 years.

ANSWER: ERR (i %) = 23.71%