Year 25 20 15 20 15 Project A Project The discount rate is 10% Aner the following questions (you HAVE TO WRITE your final calculations on the side of each question anser IN ADOTION you will need to submit your excel sheet immediately after you finish a. Calculate the NPV, BCR, and IRR for both projects. b. Write a paragraph with your conclusion in part (a), if both projects were independent and if they were mutually exclusive. 20 30 20 75 20

Year 25 20 15 20 15 Project A Project The discount rate is 10% Aner the following questions (you HAVE TO WRITE your final calculations on the side of each question anser IN ADOTION you will need to submit your excel sheet immediately after you finish a. Calculate the NPV, BCR, and IRR for both projects. b. Write a paragraph with your conclusion in part (a), if both projects were independent and if they were mutually exclusive. 20 30 20 75 20

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 13P

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How much would you invest today in order to receive $30,000 in each of the following? (for further instructions on present value in Excel, see the Suggested Resources in the textbook: https://cnx.org/contents/kg0cimBs@14.13:bDQCmuJO@6/Suggested-Resources) a. 10 years at 9% b. 8 years at 12% c. 14 years at 15% d. 19 years at 18%
How much would you invest today in order to receive $30,000 in each of the following independent scenarios: 10 years at 9% 8 years at 12% 14 years at 15% 24 years at 10% Use the appropriate EXCEL spreadsheet in the Chapter11 TVOM Examples.xlsx downloadto complete the following table: Present Value (PV) Rate Time (Years) Future Value (FV) A 9% 10 $30,000.00 B 12% 8 $30,000.00 C 15% 14 $30,000.00 D 10% 24 $30,000.00 PLEASE NOTE: All dollar amounts will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67). Use the present value of $1 table in the Appendix B PV FV Tables downloadand verify that your answers above are correct: Future Value (FV) Rate Time (Years) FV Factor (from Table) Present Value (PV) A $30,000.00 9% 10 B $30,000.00 12% 8 C $30,000.00 15% 14 D $30,000.00 10% 24 PLEASE NOTE: All PV Factors will be rounded to three decimal places (i.e. 1.234). All dollar amounts will be with "$" and…
SUBJECT: ENGINEERING ECONOMICS (a) Identify the Given and the Unknown or what is being asked in the problem (b)Provide the formula to be used (c)Show the complete solution. The final answer is already provided. At 5% annual interest, what is the difference in the present and future value of P100 paid at the end of each year for 10 years and P100 paid at the beginning of each year? Answer: P value difference = P88.61, F value difference = P62.89
A potential project provides the following: Initial Investment = 36,101 Annual cash Flows = 12,101 period= 5 years What is the discount rate If NPV = 0? Answer in the format: #0.00 Answer as a percentage but without the % sign Example 0 0651 is entered as 6.51 Do not round intermediary calculations. Use full precision of your calculator or Excel. Do not include commas or dollar signs. Round properly to two decimal places Example: .157835 would be .16 Example: 2.3491 would be entered 2.35 HINT: Be sure your answer is percentage
Tri Star, Inc., has the following mutually exclusive projects: Year Project A Project B 0 –$ 13100 –$ 8500 1 7300 3200 2 6300 2700 3 2,100 5100 Calculate the payback period for each project. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) If the appropriate discount rate is 9 percent, what is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Q5: Solve the following two independent scenarios: A. How much must be invested now to receive $30,000 for 10 years if the first $30,000 is received one year from now and the rate is 8%? Future Value PV FV Tables Factor Present Value PLEASE NOTE: All FV Factors will be rounded to three decimal places (i.e. 1.234). All dollar amounts will be with "$" and commas as needed and rounded to whole dollars (i.e. $12,345). Use the appropriate EXCEL spreadsheet in the Chapter11 TVOM Examples.xlsx downloadto prove your answer above: Using the appropriate EXCEL spreadsheet, the answer = PLEASE NOTE: The dollar amount will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67). B. Project A costs $5,000 and will generate annual after-tax net cash inflows of $1,800 for five years. What is the NPV using 8% as the discount rate? Future Value PV FV Tables Factor Net Present Value PLEASE NOTE: All FV Factors will be rounded to three…
If a project requires a $1000 initial investment, it returns $500 at the end of the first year, $600 at the end of the second year, $700 at the end of the third year, and -$500 in the fourth year. Calculate MIRR for this project if the discount rate is 9% Group of answer choices 15.96% 10.45% 14.77% 11.99%
Question 9: You have a opportunity to make a investment that has $10.000,000 landing, 1.500.000 machine, outsourcing 500.000 and finance cost 1.000.000. Machines have 1.000.000 scrap value at end of 5th year. You will pay interest payment at the end of project, that is $400.000. If you make this investment now, you will receive $4.500,000 one year from today, $3.000,000, $5.000,000 and $ 4.000,000 respectively. The appropriate discount rate for this investment is 15 percent. Tax rate is % 30. Should you make the investment?
Lipsion Ltd company is thinking about investing in one of two potential new productsfor sale. The projections are as follows: year revenue/ product s revenue/ product v0 (150,000) outlay (150000) outlay1 14000 150002 24000 253333 44000 520004 84000 63333 Calculate NPV of both products (to 1 d.p.) assuming a discount rate of 7%. Then decide which product should be selected and why ?
Perform 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 $90,000 each year in Years 2, 3, 4, and 5. Use an 8% discount rate. Use the NPV template provided (modify to suit your answer) and clearly display the NPV, ROI, and year in which payback occurs. Write a paragraph explaining whether you would recommend investing in this project based on your financial analysis. Explain your answer referring to the NPV, ROI, and payback for this project.
Fast pls solve this question correctly in 5 min pls I will give u like for sure Surbh You are considering the following two mutually exclusive projects. The crossover rate between these two projects is ___ percent and Project ___ should be accepted if the required return is greater than the crossover rate. Year Project A Project B 0 −$ 21,000 −$ 21,000 1. 7,000 15,040 2 7,000 5,000 3 15,000 7,060 Multiple Choice 15.61; B 16.70; A 15.61; A 12.59; B 12.59; A
Perform a financial analysis for a project using the format below. Assume the projected costs and benefits for this project are spread over four years as follows: estimated costs are $100,00 in year 1 and $25,000 each year 2, 4, and 4. (hint: just change the years in the template file from 0,1,2,3, and 4. This discount factors will automatically be recalculated). Estimated benefits are $0 in Year 1 and $80,000 each years 2,3, and 4. Use an 8% discount rate. Use the business case financials template provided on the companion web site to calculate and clearly display the NPV, ROI, and year in which payback occurs. In addition, explain whether you would recommend investing in this project based on your financial analysis.