Three mutually exclusive projects, Project A, Project B, and Project C, are being considered for investment at a MARR of 10%. The three investments are explained in the table below. Answer the questions that follow the table. Project A Project B Initial Cost $50,000 $40,000 Project C $45,000 Annual O&M $3,500 $4,700 $2,800 Annual Revenues $5,300 $7,400 $8,200 Useful life 2 years 3 years 6 years What is the correct setup for calculating Annual Worth of Project A? How will you use this Annual Worth to calculate NPW for Project A? Use the different drop downs to complete the answers. AW: == [Select] [Select] NPW AW [Select] = ✓ ( [Select] [Select] ,10%, [Select] ,10%, [Select] 7 ) + (

A firm has the opportunity to invest in a project having an initial outlay of $20,000. Net cash inflows (before depreciation and taxes) are expected to be $5,000 per year for five years. The firm uses the straight-line depreciation method with a zero salvage value and has a (marginal) income tax rate of 40 percent. The firms cost of capital is 12 percent. Compute the IRR and the NPV. Should the firm accept or reject the project?

Bell Greenhouses has estimated its monthly demand for potting soil to be the following: N=400+4X where N=monthlydemandforbagsofpottingsoil X=timeperiodsinmonths(March2006=0) Assume this trend factor is expected to remain stable in the foreseeable future. The following table contains the monthly seasonal adjustment factors, which have been estimated using actual sales data from the past five years: Forecast Bell Greenhouses demand for potting soil in March, June, August, and December 2007. If the following table shows the forecasted and actual potting soil sales by Bell Greenhouses for April in five different years, determine the seasonal adjustment factor to be used in making an April 2008 forecast.

Metropolitan Hospital has estimated its average monthly bed needs as N=1,000+9X where X=timeperiod(months);January2002=0 N=monthlybedneeds Assume that no new hospital additions are expected in the area in the foreseeable future. The following monthly seasonal adjustment factors have been estimated, using data from the past five years: Forecast Metropolitans bed demand for January, April, July, November, and December 2007. If the following actual and forecast values for June bed demands have been recorded, what seasonal adjustment factor would you recommend be used in making future June forecasts?