The modified B/C ratio for a city-owned hospital heliport project is 1.7. The initial cost is $1 million, annual benefits are $150,000, and the estimatedlife is 30 years. What is the amount of the annual M&O costs used in the calculation at a discount rate of 6% per year?
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The modified B/C ratio for a city-owned hospital heliport project is 1.7. The initial cost is $1 million, annual benefits are $150,000, and the estimated
life is 30 years. What is the amount of the annual M&O costs used in the calculation at a discount rate of 6% per year?
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- Assume that the projected costs and benefits for this project are spread over four years as follows: Estimated costs are $300,000 in Year 1 and $40,000 each year in Years 2, 3, and 4. Estimated benefits are $0 in Year 1 and $120,000 each year in Years 2, 3, and 4. Use a 7 percent discount rate, and round the discount factors to two decimal places. Create a spreadsheet to calculate and clearly display the NPV, ROI, and year in which payback occurs.The Parks and Recreation Department of Burkett County estimates that the initial cost of a “barebones” permanent river park will be $2.3 million. Annual upkeep costs are estimated at $120,000. Benefits of $340,000 per year and disbenefits of $40,000 per year have also been identified. Using a discount rate of 6% per year, calculate (a) the conventional B/C ratio and (b) the modified B/C ratio.Keating Hospital is considering two different low-field MRI systems: the Clearlook System and the Goodview System. The projected annual revenues, annual costs, capital outlays, and project life for each system (in after-tax cash flows) are as follows: Clearlook Goodview Annual revenues $720,000 $900,000 Annual operating costs 445,000 655,000 System investment 900,000 800,000 Project life 5 years 5 years Assume that the cost of capital for the company is 8%. Required: 1. Calculate the NPV for the Clearlook System. 2. Calculate the NPV for the Goodview System. Which MRI system would be chosen? 3. What if Keating Hospital wants to know why IRR is not being used for the investment analysis? Calculate the IRR for each project and explain why it is not suitable for choosing among…
- Perform a financial analysis for a project. Assume that the projected costs and benefits for this project are spread over four years as follows: Estimated costs are $300,000 in Year 1 and $ 75,000 each year in Years 2, 3, and 4. Estimated benefits are $0 in Year 1 and $110,000 each year in Years 2, 3, and 4. Use a 6 percent discount rate, and round the discount factors to two decimal places. What is the Return on Investment (ROI)? (Keep your answer in two decimal places. e.g. 46.59. Do not enter % symbol.)Assume that the projected costs and benefits for this project are spread over four years as follows: Estimated costs are $300,000 in Year 1 and $40,000 each year in Years 2, 3, and 4. Estimated benefits are $0 in Year 1 and $120,000 each year in Years 2, 3, and 4. Use a 7 percent discount rate, and round the discount factors to two decimal places.Keating Hospital is considering two different low-field MRI systems: the Clearlook System and the Goodview System. The projected annual revenues, annual costs, capital outlays, and project life for each system (in after-tax cash flows) are as follows: Clearlook Goodview Annual revenues $720,000 $900,000 Annual operating costs 445,000 655,000 System investment 900,000 800,000 Project life 5 years 5 years Assume that the cost of capital for the company is 8 percent. The present value tables provided in Exhibit 19B.1 and Exhibit 19B.2 must be used to solve the following problems. Required: Calculate the NPV for the Clearlook System.$ Calculate the NPV for the Goodview System.$ Which MRI system would be chosen? Clearlook System Goodview System3. What if Keating Hospital wants to know why IRR is not being used for the investment analysis? Calculate the IRR for each project. Round the discount factor to three decimal places. Round the IRR…
- Consider a project with costs of $39 million total in 6 years. Assuming that the costs are paid the last day of the last year, the present discounted value of these costs, using a 5% discount rate is ___ million: Please explain the process to finding the answer as well.Perform a financial analysis for a project using the format table provided in the picture below. Assume the projected costs and benefits for this project are spread over four years as follow: Estimated costs are $150,000 in Year 1 and $35,000 each year in Years 2, 3, and 4. Estimated benefits are $0 in Year 1 and $85,000 each year in Years 2, 3, and 4. Use a 12 percent discount rate and round the discount factors to two decimal places. Create a table to calculate and display the NPV, ROI, and year in which payback occurs.Perform a financial analysis of a project assuming that the projected costs and benefits for this project are spread over four years as follows: Estimated costs are $200,000 in Year 1 and $30,000 each year in Years 2,3 and 4. Estimated benefits are $0 in year 1 and $100,000 each year in Years 2,3 and 4. Use a 9 percentage, discount rate, round the discount factors to two decimal places. Create a table of financial template on the paper to calculate and clearly display the NPV, ROI and year in which payback occurs with the help of a graph. In addition, write a paragraph explaining whether you would recommend investing in this project, based on your financial analysis.
- A flood control project with a life of 14 years will require an investment of $57,000 and annual maintenance costs of $4,000. The project will provide no benefits for the first three years but will save $22,000 per year in flood damage starting in the fourth year. The appropriate MARR is 11% per year. What is the modifie B-C ratio for the flood control project? Click the icon to view the interest and annuity table for discrete compounding when the MARR is 11% per year. Choose the closest answer below. i More Info O A. The modified B-C ratio for the flood control project is 3.43. O B. The modified B-C ratio for the flood control project is 1.26. O C. The modified B-C ratio for the flood control project is 1.18. Discrete Compounding; i= 11% Uniform Series Single Payment Compound Amount O D. The modified B-C ratio for the flood control project is 1.75. Compound Amount Sinking Fund Factor To Find A Сaptal Recovery Factor O E. The modified B-C ratio for the flood control project is 1.64.…Perform a financial analysis for the following project and answer the following related questions. Projected costs for this project are spread over four years as follows: Estimated costs are $200,000 in Year 1 and $50,000 each in Years 2, 3, and 4. - Estimated benefits are $0 in Year 1 and $160,000 each year in Years 2, 3, and 4. - Use an 10% discount rate. What is the NPV of this project (rounded to nearest dollar)? Oa. $49,000.00 Ob. $116,124.00 OC. $66867.00Perform financial analysis for a project using the format discussed in the course. Assume the projected costs and benefits for this project are spread over four years as follows: Estimated costs are $130,000 in Year 1 and $15,000 each year in Years 2, 3, 4, and 5. Estimated benefits are $0 in Year 1 and $90,000 each year in Years 2, 3, 4, and 5. Use an 8% discount rate. 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.
