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 F is one half complete and (H) is three -fourth complete and (C) is half complete. The incurred cost to date is 1720000 Apply your knowledge of carmed value to calculate the status of this project in terms of the schedule and the budget? Activity Cost 100000 25000 500000 45000 IS0000 29000 Jan Feh Mar Apr May Jun A 84000 840000 700000 470000 980000 450000
Q: An organization has identified the following projects for possible investment The net present values…
A: Return on costs refers to the ratio of income from an investment and its cash outlay and can be used…
Q: You have been asked to sit on the Ministry’s project selection committee. The following information…
A: The payback period rule is 4 years if the project has a payback of 4 years or less than 4 years then…
Q: Given a Project with the following data: First (initial) cost = JD 7000; Annual Operating cost= JD…
A: The following calculations are done to calculate the equivalent single value of the project.
Q: n the design of a chemical plant, the following expenditures and revenues are estimated after the…
A: Solution- Pay Back Period=2.02 years Payback Period=Net initial investment / Annual inflow( Before…
Q: Evaluate the following projects using the payback method assuming a rule of 3 years for payback.…
A: Payback Period is used for project evaluation by measuring the years required to recoup the initial…
Q: what is the projects equivalent annual cost, or EAC?
A:
Q: The following data are accumulated by Watershed Inc. in evaluating two competing capital investment…
A: The formula for average rate of return is = Average Annual Profit/ Initial Investment Project A…
Q: nvestment Criteria. Calculate the IRR for a project costing $350,000 and providing $25,000 annually…
A: IRR is the rate at which the net NPV of the project is zero. IRR formula using trial and error…
Q: CONSTRUCTION COMPANY is executing a construction project, which is expected to take three years. The…
A: Marketing and selling costs are not included in the cost of construction because they cannot be…
Q: Using the ERR method and a 17% MARR, determine the acceptability of a 10-year manufacturing project…
A: MARR = 17℅ REINVESTMENT RATE = 14℅ Year Time to Maturity Outflows Inflows 0 10 2,800,000 1…
Q: Sunshine Bhd. entered a contract to build a building for its customer with the agreed total price of…
A: Cost incurred during the year 2019 = $1,000,000 - $400,000 = $600,000 Cost incurred during the year…
Q: Estimate the amount of money needed to complete a software project based on the given values,…
A: BAC = PHP 8000.000 AC = PHP 4200.000 EV = PHP 3800.000 Cost performance Index = EV / AC EAC can be…
Q: The following data are accumulated by Watershed Inc. in evaluating two competing capital investment…
A: Hence, the annual net income for project A is $2,240. It is obtained by dividing total net income…
Q: Assume that Larkspur completed the facility on December 31, 2017, at a total cost of $ 12,566,000,…
A: Depreciation is the reduction in the value of the assets due to normal wear and tear, passage of…
Q: ASAP D&L Group of Companies conducted an audit on the expansion project at Sto. Batangas. The…
A: The presented project dashboard implies Cost utility approach.
Q: You are given the following estimated information about a proposed project: Investment cost $ 66,000…
A: Economic life of the project means the duration for which the project will remain operational.…
Q: Earned Value Analysis of the project supported by cost Performance Index and Schedule Performance…
A: BCWS=Budgeted Cost of Work Scheduled/ Planned value ACWP=Actual Cost of Work Performed/ Actual cost…
Q: Required information [The following information applies to the questions displayed below.] The…
A: Present value method is used to evaluate the different level of investment projects. With the help…
Q: Using the IRR and NPV method calculate and determine if the capital budget project is viable project…
A: Net Present Value: The NPV is the Net of Present value of future inflow and the present value of…
Q: 1. There are five projects have been identified for possible implementation by JTG company that…
A: Here there are 5 projects and not all of them can be selected because of the budget constraint at…
Q: A project is estimated to cost P120T, last 8 years & have a salvage value of P20T. The annual gross…
A: Here, Initial investment = P 120,000 Time period = 8 years Salvage value = P 20,000 Annual income =…
Q: Nicholson Roofing Materials, Inc., is considering two mutually exclusive projects, that both cost…
A: The question is based on the concept of Financial Management. As per the Bartleby guidelines we are…
Q: Crane Company is considering three long-term capital investment proposals. Each investment has a…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: The following capital expenditure projects have been proposed for management's consideration at…
A: Present value refers to the current valuation for a future sum. Investors determine the present…
Q: What amount of development cost should Headway Company capitalize in 2024? a. 2,200,000 b.…
A: Project A: Cost incurred till date = 2,200,000 Project B: Nil, because the commencement of…
Q: following estimated benefit and cost. By using NPV method, select the project and consider WACC 8%…
A: Net Present Value: Net present value is the measure of profitability in dollar amounts of a project…
Q: DuraTech Manufacturing is evaluating a process improvement project. The estimated receipts and…
A: a.
Q: n the following set of projects from a roadway agency, determine the Minimum Attractive Rate of…
A: A suitable rate of return developed for the appraisal of alternatives is known as the MARR.
Q: Investec Plc is preparing its annual capital budget and is considering three projects, X, Y and Z.…
A: Payback period determines the number of year going to be consumed to recover the investment made by…
Q: Projects A and B have first costs of $5,000 and $9,000 respectively. • Project A has net annual…
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: You are evaluating three mutually exclusive public-works projects with the respective costs and…
A: In this question, we have been given 3 projects and the life of all three projects has been given 30…
Q: average rate of return for a project
A: Average annual income Total income/Number of years Total income $386,400 Number of years 4…
Q: December 31 Y1, the Company ARL develop a Product: Master 3D. The disbursement associate to the…
A: Solution Explanation - 1- Under US GAAP Entire research and development cost i.e (6000000+4000000)…
Q: Calculate the payback period for each project Year Project A ($) Project B ($) Project C ($) 0…
A: Payback period is the time it takes for a project to pay back its investment amount in the form of…
Q: Odin Ltd (Odin) carries out research and development. In the year ended 30 June 2018, Odin incurred…
A:
Q: Earned Value Analysis of the project supported by cost Performance Index and Schedule Performance…
A: Earned Value Analysis is a method applied by the managers to understand the schedule, cost and the…
Q: Engr. Alcayde presented the following information regarding his road construction project which is…
A: Under contract process, the profit is calculated on the basis of project completed this year.
Q: A quantity of steel in the amount of $423,000.0 is needed for a project, payment due (from…
A: Amount Needed For The Project $423000 Determination of Total Interest for the Project…
Q: The independent project estimates below have been developed by the engineering and finance managers…
A: The net present value is one of the capital budgeting techniques which can be used to evaluate…
Q: 7 independent project proposals from various departments of an enterprise has come. The budget…
A: [Amount in '000 TL] (1) (2) (3) (4) (5) (2)*(4) (6) (7) (8) (9) (10) (5+8-9)…
Q: DuraTech Manufacturing is evaluating a process improvement project. The estimated receipts and…
A: Net future value is the technique used in capital budgeting to evaluate the acceptability of the…
Q: Wermer, Inc. began a construction project in 2020. The project is accounted for under the percentage…
A: Percentage of completion method is a basis for revenue recognition in long-term construction…
Q: DuraTech Manufacturing is evaluating a process improvement project. The estimated receipts and…
A: end of year receipts disbursement 0 0 5000 1 0 200 2 2000 300 3 4000 600 4 3000 1000 5…
Q: You are given the following forecasted data about a project • Project life = 3 years Required…
A: Forecasted data : Project life = 3 years Required investment = $1200000 Salvage value = $200000…
Q: JPGR Inc is evaluating an investment with the following information: Initial investment at time t=0…
A: NPV is a technique under Capital budgeting which help in decision making on the basis of future Cash…
Step by step
Solved in 2 steps
- Earned Value Analysis of the project supported by cost Performance Index and Schedule Performance Index readings. Comment on the progress of each activity and overall health of the project. Activity 1- Percentage Completion 80% BCWS Rs. 30,000 ACWP Rs. 25,000. Activity 2- Percentage Completion 40% BCWS Rs. 60,000 ACWP Rs. 80,000. Activity 3- Percentage Completion 100% BCWS Rs. 80,000 ACWP Rs. 78,000. Cumulative BCWS Rs. 170,000 ACWP Rs. 183,000.Evaluate the following project using PW method. The MARR is set to 12% per year Initial Investment - 13,000 Useful Life - 15 yrs Annual Operating Expenses - 1000 Overhaul cost EOY 5 - 200 Overhaul cost EOY 10 - 550A project requires an initial investment of 45,000$, has a salvage value of 11,000$ after six years, incurs annual expenses of 9,000$, and provides an annual revenue of 16,000$. Using MARR of 10%, determine the AW of this project detailed answer without using excel
- The company will have to allocate funds to net working capital (NWC) for parts inventories equivalent to 8% of annual sales, spent in year 1 and sold off in last year at the end of the project. Determine the amount of NWC that will be allocatedThe 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. The cost of depreciable property, which is part of the $1,000,000 total estimated project cost, is $650,000. The depreciable property is categorized in CCA 30% class, with 50% rule applicable. The project analysis period is 3 years. Annual operating and maintenance expenses are $636,000 in the first year, and then increase at the rate of 5% per year. The company expects to make $1,250,000 of revenue from the sales of the new product. Estimated salvage value of depreciable property at the end of three years is $280,000. Corporate taxes are 40% MARR is 15% per year. Solve the question on Exel. Calculate a 3-Year cash flow statement for the project, and then calculate the following two questions listed below using Excel: The Net Present Value of the project The IRR of the projectYou are evaluating three mutually exclusive public-works projects with the respective costs and benefits included in the table below. The useful life of each of the projects is 30 years and MARR is 12% annually. Should any of the projects be selected? (Hint: use incremental B-C Analysis) A B C Capital Investment $10,500,000 $12,000,000 $14,000,000 Annual Operating and Maintenance Costs $850,000 $925,000 $930,000 Market Value $1,350,000 $1,950,000 $2,100,000 Annual Benefit $2,250,000 $2,565,000 $2,700,000
- A project with a life of 10 has an initial fixed asset investment of $25,620, an initial NWC investment of $2,440, and an annual OCF of −$39,040. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required return is 10 percent, what is the project's equivalent annual cost, or EAC? Show equations using excel.Determine the B/C ratio for the following project.First Cost = P100, 000Project life, years = 5Salvage value = P10, 000Annual benefits = P60, 000Annual O and M = P22, 000Interest rate= 15%PLEASE ANSWER BOTH POINTS (1 AND 2), PROPERLY BREAKDOWN POINT NUMBER 2 WITH THE CORRESPONDING OPERATIONS AND ALL THE RESULTS. InstructionsAn evaluation is needed for a sock production project that requires an initial investment of $50,000,000°, of which 80% corresponds to depreciable fixed assets, and 20% to working capital. The unit production cost is $10,000°°, and a unit sale value of $13,500°° is estimated. The market study revealed a potential demand of 20,000 units for the first year. The fixed assets are depreciated straight-line over a useful life of 10 years. Operational expenses are estimated at $4,000,000° for the first year. The fixed costs amount to $10,000,000° for the first year. The following increments are estimated: sales increase by 2% annually, variable unit cost by 3% annually, unit sale price by 3% annually, operational expenses by 6% annually, and fixed costs by 5% annually. The project has a useful life of 5 years. 1. Build the project's cash flow.2. Calculate…
- ASAP D&L Group of Companies conducted an audit on the expansion project at Sto. Batangas. The project engineer presented the summary of project dashboard to be: PROJECTED PROJECT PLAN Project Duration: 2Years Project Cost: Php 193,000,000.00 Manpower: 125Persons ACTUAL PROJECT EXECUTION Project Duration: 6 Months Project Cost: Php 193,000,000.00 Manpower: 163 Persons Without mathematical calculation, what economic approach/ analysis the presented project dashboard implies?Why do you say so?Company A has provided figures for two investment projects, only one of which may be chosen. These are the calculations based on the figures: Payback Period The Accounting Rate of Return / Return on Capital Employed Net Present Value Project A 2 years 4 months 27.08% £63,705 Project B 2 years 7 months 39.47% £74.971 Analyse and provide recommendations as to what project needs to be chosen based on the calculations above.The following information relates to two projects of which you have to select one to invest in.Both projects have an initial cost of $400,000 and only one can be undertaken.Project X YExpected profits $ $Year 1 160,000 60,000Year 2 160,000 100,000Year 3 80,000 180,000Year 4 40,000 240,000Estimated resale value atthe end of year 4 80,000 80,000i) Profit is calculated after deducting straight line depreciationii) The cost of capital is 16%Required:a) For both projects, calculate the following:i) The payback period to one decimal place ii) The accounting rate of return using average investments iii) The net present value iv) Advise the board which project in your opinion should be undertaken, givingreasons for your decision.