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Project Description Initial Cost Annual Revenue ($1000s) ($1000s) $44 A Replace equipment to reduce labor costs 200 B. Overhaul equipment to 150 $36 reduce material costs Replace Equipment to reduce defective parts Change packaging to reduce shipping costs 120 $29 D 100 $25 ACME, Inc. is evaluating four proposals to increase their earnings. The initial costs and annual revenues are shown in the table below. If they have $300,000 in capital available to invest in these projects, what would ACME's rate of return be if they pursued Project A? Assume a common study period of 10 years. Show all work.

Initial Equipment $65,000 Project Life 3 Years Sales $55,000 Variable Costs $25,000 Fixed Costs $ 10,000 Tax rate 26% Cost of Capital 10% Ending Book Value $10,000 Sales Price at Year 3 $5,000 Net Working Capital $10,000 CALCULATE THE INITIAL COSTS, CALCULATE THE OPERATING CASH FLOW, CALCULATE THE TERMINAL NON OPERATING CASH FLOW, CALCULATE THE NPV. please show your work and formulus for the answers

Complete the Capital Budgeting Schedule

föllowing Cost Factor Site B 170,000$ Site A Price of land 100,000S Monthly cost of delivering materials S 10,000 $ 7,000 Cost of equipment setup $ 12,000 $ 9,000 Cost of utilities per month $ 1,500 1,100 For site A, an extra $ 60/ day is needed for additional site guards. a- Which site should the contractor select? b- When do the costs of two sites are equals (After how many months of work the costs are similar)?

The following is a cost / revenue estimates of a project:        Initial investment                   $50,000        Annual revenue                        20,000        Annual operating cost               2,500..        Salvage value@EOY                10,000        Study period                              5 years         MARR                                       20% per year Determine whether the project is profitable using the PW method .

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Compute the project cost. Gross income 1,000,000 Life of project Operating cost Rate of project 500,000 5 years 20% Benefit ratio 1.08 O a. P1,384,543.00 O b. P1,348,543.00 O c. P1,384,534.00 O d. P1,384,453.00

A medium size manufacturing company has a budget of $200,000 to invest on five different capital projects. Each has a six year life. Additional financial data for the five project opportunities are given below. Initial Cost $50K EUAB OD.A. E OCAB A OC. B. D OA.C.E 12,160 Determine which projects should be funded. B $80K 18,368 C $30K 7,932 D $40K 8,652 E $60K 13,374

Assignment 1 a) LIFE CYCLE COSTS FOR PROPOSED BRIDGE REPLACEMENT STEEL PANEL TRUSS DESIGN Year               Activity                                                                  Cost  0                 Bridge replacement                                             595,000 15                Replace asphalt paving                                       15,000 30               Replace asphalt paving                                        15,000 40               Replace deck, regalvanize trusses,                       306,000 55               Replace asphalt paving                                        15,000 70              Replace asphalt paving                                        15,000 Calculate the present value of the costs  for the above project cash flow with a discounting rate of 5% b)THREE-SPAN PRE-STRESSED GIRDER DESIGN Year                          Activity                                                           Cost 0                             Bridge replacement…

You are considering the following investment activity.  The facts are the following:                 Required investment    300,000.00         Discount Rate 9%         Life of project                7.00 Years       Net income for the project           Sales    140,000.00         Expenses           Material       25,000.00         Labor       35,000.00     235000   Overhead       15,000.00         Total Expenses       75,000.00         Net Income       65,000.00                     What is the NPV of this investment?          2,714,193.00       What is the IRR of this investment? 11646%       Would you fund this project? yes                   Show your work below              Year             0  -300,000.00          1  65,000.00          2  65,000.00          3  65,000.00          4  65,000.00          5  65,000.00          6  65,000.00          7  65,000.00

The Dammon Corp. has the following investment opportunities:   Machine A Machine B Machine C ($10,000 cost) ($22,500 cost) ($35,500 cost) Inflows Inflows Inflows year 1 $ 6,000   year 1 $ 12,000   year 1 $ -0-   year 2   3,000   year 2   7,500   year 2   30,000   year 3   3,000   year 3   1,500   year 3   5,000   year 4   -0-   year 4   1,500   year 4   20,000       Under the payback method and assuming these machines are mutually exclusive, which machine(s) would Dammon Corp. choose?

The following information is for a proposed project that will provide the capability to produce a specialized product estimated to have a short market life. Capital investment is $1,000,000 Cost of depreciable property which is part of $1,000,000 total estimated project cost is $650,000 Depreciable property is categorized in CCA 30% class with 50% rule applicable. Project analysis period is 3 years Annual operating and maintenance expenses are $636,000 in first year and increase at 5% rate per year Company expects to make $1,250,000 of revenue from sales of new product Salvage value of depreciable property at end of 3 years is $280,000 Corporate taxes are 40% MARR is 15% per year Calculate a 3-year cash flow statement then calculate using excel, Net Present Value of the project IRR

Can you explain how they calculate the value of NPV?

19. Economic data pertaining to three mutually exclusive layout design of a small facility are given in the following table. Suggest, for an M.A.R.R. is 15% per year, determine which layout design will you recommend using all methods for selecting among alternatives. Layout Designs II II Capital investment (P) Net annual revenue (P) -13,000,000 4,500,000 99,900 6,500,000 2,650,000 15,000 10,00,000 3,84,000 25,000 Salvage value(P) Useful life (years) 10 10 10

A project has been defined that consist of 13 activities for which the estimated cost and duration have been defined (TABLE). Afterfour-andahalf monthfthe activates A, B, D. E, G are completed and Fis one half complete nd (H) is three -fourth complete and (C) is half complete The incurred cost to date is 1720009 Apply your knowledge of camed value to calculate the status of this project in terms of the schedule and the budger? Activity 中 Cost 100000 25600 500000 4S000 150000 29000 180000 84000 840000 700000 470000 Jan Feb Mar May Jun H. 45000

Given the data in the following table, what is the IRR of Project B?

Which projects should be done, if a parks and recreation department has a capital budget of $350,000?

A county in Tennessee is considering the following public interest project. Initial Cost $22.5M Annual Maintenance Cost $525K EUAB $3.3M Given a useful life of 12 years and an interest rate of 4%, the benefit /cost ratio is........... A. 1.01 B. 1.67 C. 1.48 D. 1.51.

The Dammon Corp. has the following investment opportunities: Machine A Machine B Machine C ($10,000 cost) ($22,500 cost) ($35,500 cost) Inflows Inflows Inflows year 1 $6,000 year 1 $12,000 year 1 $-0- year 2 year 3 3,000 year 3 3,000 year 2 7,500 1,500 year 3 1,500 year 4 20,000 year 2 30, 000 5,000 year 4 -0- year 4 Under the payback method and assuming these machines are mutually exclusive, which machine(s) would Dammon Corp. choose? Multiple Choice Machine C Machine B Machine A

HOW TO SOLVE THIS?

Air Scrubbers Furnace Fuel Change: Initial Investment $ 1.350,000 $ 385.000 Annual Net Cash Flows $ 225.000 315.000 Annual Net Income Project Life Average Book Value Cost of Capital $ 135,000 S 150,000 15 years 15 years $ 675,000 692.500 6% 8%

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Evaluate the following project using PW method. The MARR is set to 12% per year Initial Investment - 13,000 Useful Life - 15 yrs Annual Operating Expenses - 1000 Overhaul cost EOY 5 - 200 Overhaul cost EOY 10 - 550

The tabular information of a certain engineering project is shown below: REVENUE AND COST ESTIMATES Capital investment Annual revenue Annual operating cost Salvage value Study period BD 60,000 BD 25,000 BD 9,000 BD 20,000 MARR 20% Evaluate the project using Present Worth (PW) method

Calculate for the cost of site clean-up if the total duration of the project is 18 months. The estimated number of trips per week is 3 truck loads of site rubbish and debris with a cost of Php 3,200.00 per trip. Php 9,600.00 Php 19,200.00 Php 345,000 Php 691,200.00

METHODS THAT CONSIDER TIME VALUE OF MONEY   Two investment proposals have been made and the following data thereon are given:   Project ALPHA Project BETA Investment P123,417 P155,934 Depreciable assets included in the investment figure 60,000 72,000 Economic life 8 years 12 years Annual sales revenue P65,000 P78,000 Annual out-of-pocket operating cost 36,000 42,500   Income tax rate 35% Cost of capital 10%   Determine which proposal is the better one based on:   a.   Internal rate of return b.   Net present value c.   Profitability index d.   Discounted payback period

Locations under consideration for a border patrol station have their costs estimated by the federal government. Use the B/C ratio method at an interest rate of 8% per year to determine which location to select, if any. Location North N South S Initial Cost. $ 960,000 2,900,000 Annual Cost, $ per Year 480,000 450,000 Disbenefits, $ per Year 70,000 60,000 00 Life, Years 00 The AB/C ratio is Select location (Click to select) v

Project A has the following information: Year 0 1 2 3 4 5 Initial investment outlay 125,000           Cash inflows   75,000 80,000 95,000 95,000 86,250 Personnel expenses   22,500 22,500 22,500 22,500 22,500 Material expesnes   15,000 20,000 22,500 22,500 22,500 Maintenance expenses   2,500 2,500 5,000 8,750 10,000 Other cash outflows   3,750 3,750 3,750 5,000 5,625 Liquidation value           12,500 Project B has the following information: Year 0 1 2 3 4 5 Initial investment outlay 225,000           Cash inflows   155,000 140,000 108,750 93,750 125,000 Personnel expenses   27,500 27,500 27,500 27,500 27,500 Material expenses   25,000 22,500 22,500 22,500 24,000 Maintenance expesnses   8,750 11,250 17,500 15,000 14,000 Other cash outflows   6,250 3,750 3,750 3,750 4,000 Liquidation value           15,000 The Discount Rate is 8%Assess the relative profitability of the two options using the following methods:(i) The Annuity Method(ii) The Net…

Calculate the NPV of Project A using the below information: Project period: 5 Years Amount paid for research: $10,500 Cost of equipment: $150,000 (Depreciation method: Straight line for 5 years) Annual savings from this project A: $55,500 Cost of Capital: 12% Tax rate: 38% a. $4,634.80 b. -$25,959.65 C. $15,134.80 d. -$36,459.65 U: 0.0 kB/s D: 0.3kBls rch DELL

Consider the project balances in following Table for a typical investment project with a service life of four years. Project Balance Cash Period Flow $ (5,200) $ (5,200) $ (3,780) $ (547) $ 3,771 $ 3,600 $ 7,937 1 3. Determine the interest rate used in computing the project balance. O 1496 O 10%6 896 O None of these