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- Compute for the Annual Worth of MEA1 and explain. Compute using the Annual Worth formula and WITHOUT using Excel sheets. Thank you. MARR = 12%is considering a new 3- year - long project that would involve using specialized scanning software to scansubmitted screenshots in low resolution and convert them into high resolution text documents that there's currently astrong market for. Course Hero requires a 17 percent annual return on this uncertain project, high enough tocompensate for the underlying uncertainty of future cash inflows. A decision to accept the project would be followed byan immediate investment of $5.8 million into purchasing the software. At the end of the project Course Hero is hoping tobe able to find a different company in similar line of business that would be willing to pay $449, 400 for the software andits future ownership.other similar software, its value will be dropping over its economic life according to the 3- yearMACRS depreciation schedule. (See this MACRS Table) Course Hero pays taxes on its annual income and other taxablecash flows according to a 32 % tax rate. Course Hero estimates $5, 136, 000…BOND PROBLEM: $1675 bond matures in 16.5 years. Coupon rate 3.39%. Payment made biweekly. R= 4.89%. After 5 -years coupon rate becomes 22% and payment made weekly. R=13%. What is your RATE OF RETURN over the years (ROR)?
- dont use excel i will 5 upvotes. Assuming a firm’s weighted average cost of capital is 12%, what is the discounted payback period of the following project? Year Net Cash Flow 0 -$375,000 1 $200,000 2 $200,000 3 $350,000 Group of answer choices a. 2.40 years b. 2.15 years c. 2.21 years d. 1.88 years# 7 Use Excel - Be organized. Use Excel formulas/functions. A new high efficiency motor is being considered for a large compressor. It will cost $22,000 but it will save $8250 per year in O&M. The useful life of the motor is 8 years. The company has a 3-year discounted payback period, and a MARR of 15%. (a) Should the motor be bought?Triple J Construction Firm had put up for sale of some of their heavy equipmentfor construction works. There were two interested buyers submitting their respective bidsfor the heavy equipment. The bids are as follows:Buyer A offers P10,000,000 payable 20% down payment, the balance payable P1,000,000annually for 8 years.Buyer B offers P9,000,000 payable P2,000,000 down payment, the balance payableP500,000 semi-annually for 7 years.How much is the difference between the two bids if money is worth 10% effective?ANSWER: P347,733.29
- An electric cooperative is considering the use of a conicrete electric pole in the expansion of its power distribution lines A concrete pole costs 18.0o0 each and will last 20 years The company is presently using creosoted wooden poles which cost 12.000 per pole and will last 10 years. If money is worth 12 percent, which pole shoulcd be used? Assurne annual taxes amount to1 percerit of first cost and zero salvage value in both cases a) Use rate of return method b) if the maximum retum on investment is 20% what is the justifiable arnount that can be paid for concrete electric pole?Abbott wants to increase their marketing for Pedialyte leading up to St. Patrick's Day this year. They launch a Superbowl ad on 2/13/2022, costing them $5,000,000, and they launch a secondary campaign in early March (3/6) costing $800,000. They expect to see sales starting at $500,000 on 2/20, increasing by 20% every week for 6 weeks. Assuming a MARR of 12%, what is the present value of this project at the start of the campaign if they stop attributing sales to this on 4/3/2022?O. $602,449O. $597437O. $563,446O. $321,998Abbott wants to increase their marketing for Pedialyte leading up to St. Patrick's Day this year. They launch a Superbowl ad on 2/13/2022, costing them $5,000,000, and they launch a secondary campaign in early March (3/6) costing $800,000. They expect to see sales starting at $500,000 on 2/20, increasing by 20% every week for 6 weeks. Assuming a MARR of 12%, what is the present value of this project at the start of the campaign if they stop attributing sales to this on 4/3/2022? Group of answer choices $563,446 $602,449 $321,998 $597,437
- A firm is considering which of twodevices to install to reduce costs. Both devices have useful lives of 5 years and no salvage value. Device A costs $10,000 and can be expected to result in $3000 savings annually. Device B costs $13,500 and will provide cost savings of $3000 the first year but will increase $500 annually, making the second-year savings $3500, the third-year savings $4000, and so forth. For a 7% MARR, which device should the firm purchase?What is net future value for a project with MARR 10% and cash flows of: year 0: -200; year 1: $50; Year 2: $50; year 3: $50; year 4: -$100; year 5: $400; year 6: $400.When buying a luxury truck, three documents are signed, each one for $150,000.00, with expiration in one, two and three months. Instead, it is proposed to make two equal payments, the first in one month and the second in two months. Calculate the amount of each of the payments if the automaker collects a nominal 12.5% capitalized monthly.