An engineering project has an investment amount of $126983 with an annual net profit of $53824 for 5 years. If the interest rate and average inflation rate are 15% and 6%, respectively, calculate the present worth of the entire period.

Q: An independent project has a net investment of $250,000, and generates net cash flows of $90,000 for…

A: Calculation of Net present value of the project: Answer: Net present value is $19,155.09

Q: A four-year life project has an initial capital expenditure of $3,000 and annual operating costs…

A: Initial Capital expenditure(CAPEX) is $3000 Operating cost starting from end of 1st year is $2000…

Q: The initial cost of a project is 2,180,441 and annual income is 597,733. The expected life to be 12…

A: Capital budgeting is the process in which various projects and alternatives are evaluated and…

Q: An engineering project has an investment amount of $129849 with an annual net profit of $53187 for 4…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: An investment earns P50,000 at the end of the 1st year and decreases by P5,000 every year…

A: The rate of return methods are used to identify the most suitable projects amongst the available…

Q: What will be the equivalent uniform annual amount that will be deposited in a bank for 15 years that…

A: Time Period 15 Initial Cost  P20,00,000.00 Additional Cost at the end evry 5th year…

Q: Calculate the annual cost of the project that has an initial cost of P2.5 Million and an additional…

A: Annual Capitalized Project Cost is actually the total present value of  (i) Annual Operating Costs…

Q: The initial cost of a project is 2,180,441 and annual income is 597,733 . The expected life to be 12…

A: Initial Cost = 2,180,441 Annual Income = 597,733 Life = 12 years MARR = 15%

Q: engineering company expects to expand its plant facilities in 6 years at an estimated cost of…

A: a) Solved using Financial Calculator  N = 6 years * 4 = 24 I/Y = 10%/4 = 2.5% FV = 68,000 CPT PMT =…

Q: An engineering project has an investment amount of $129548 with an annual net profit of $53077 for 4…

A: Investment = $ 129548 Annual net profit = $ 53077 Period = 4 Years Interest rate = 15% Inflation…

Q: An engineering project has an investment amount of $129909 with an annual net profit of $53373 for 6…

A: The time value of money is the idea that the value of money received today will be more worthy than…

Q: The company recently invested in a project that has an expected annual cash inflow of P700,000 for…

A: The payback period represents the period that a project takes to recoup the initial investment. The…

Q: What is the interest earned on a project that requires an initial investment of $ 10,000 and…

A: Initial investment (PV) = $ 10,000 Future value (FV) = $ 20,114 Period (n) = 5 Years

Q: An engineering project has an investment amount of $129011 with an annual net profit of $52364 for 5…

A: Investment = $ 129011 Annual net profit = $ 52,364 Period = 5  Years Interest rate = 15% Inflation…

Q: A project's annual revenues will be $5,881,947 the first year and will decrease by $81,248 per year…

A: First year revenue = $ 5,881,947 Annual decrease = $ 81,248 Life of project = 24 Effective interest…

Q: Calculate the capitalized cost of a project with a P3,000,000 beginning cost and an extra P850,000…

A: Capitalized cost would be present value of all cost that are going to occur in future course of time…

Q: A project's annual revenues will be $6,421,691 the first year and will decrease by $51,096 per year…

A: Present value can be defined as the value at present that is., at year 0 of some future cash flows.…

Q: The annual worth equivalent of a long-life project which has estimated revenues of $50,000 now,…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: Calculate the Equivalent X(4) for a project with the following cash flows: First Cost (F.C) = JD…

A: Cash Flows: Year Cash Flow Reference 0 -13000 First Cost 1 -3000 Operating Cost 2 -3000…

Q: A company is considering a project with annual after-tax cash flows of $2,500.00 per year for six…

A: Present value: It can be defined as today’s worth of an investment that will be received in the…

Q: Calculate the capitalized cost of a project that has an initial cost of 3M and an additional…

A: Initial cost =3000000Additional cost=1000000N=10 yearsOperating cost:PA=P100000 for 4…

Q: An investment of $1,400,000 is made in 5-year MACRS-GDS equipment. Measured in constant dollars, the…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: The internal rate of return method is used by Testerman Construction Co. in analyzing a capital…

A: Internal Rate of ReturnInternal Rate of Return is the return where the sum of discounted cash…

Q: In 1-year the number of units sold will be revised either upward by 8,700 or downward by 4,300 with…

A: Given:

Q: A project has estimated annual net cash flows of $63,800. It is estimated to cost $740,080.…

A: Calculation of Cash payback period is to find the time required to recover the initial investment in…

Q: An Investment project provides the cash flow inflows of $615 per year for 8 years. a) What is the…

A: a)Calculation of project payback period:

Q: A company is considering the purchase of equipment for $270,000. Projected annual cash inflow from…

A: Payback period: It can be defined as the time that is usually taken by an investment before it…

Q: A project has a first cost of $75,000, operating and maintenance costs of $10,000 during each year…

A: First cost (C) = $75000 Annual cost (A) = $10000 n = 8 years Salvage value (S) = $15000 r = 12%

Q: An investment of $10,000 six years ago has now grown to $20,000. Determine the annual interest rate…

A: Compound Interest is calculated by multiplying the initial principal amount by one plus the annual…

Q: A project consists of an annual investment 47,000.00 for four years, with no residual values. The…

A: We use different capital budgeting tools to determine the financial feasibility and viability of…

Q: Calculate the capitalized cost of a project with a P3,000,000 beginning cost and an extra P850,000…

A: Capitalized cost would be present value of all cost that are going to occur in future course of time…

Q: A project has estimated annual net cash flows of $11,250 for four years and is estimated to cost…

A: a. Net present value of the projet = Present value of Annual net cash flows - Initial cost = Annual…

Q: An engineering project has an investment amount of $127420 with an annual net profit of $53826 for 4…

A: Here nominal rate of discount = 15% and we will use the nominal cash flows. Nominal cash flow = real…

Q: The capital cost of a certain project is $625,000 and the annual expenses are $33,000. If the study…

A: Capital Cost = -625,000 Annual Expenses = -33,000 Time Period (N) = 11 years Interest Rate = 7.25%…

Q: Determine the payback period (in years, round-off to 3 decimal places) at an interest rate of 7% per…

A: Payback period is the period which is the time period needed for recovering the investment cost. In…

Q: Twoyears ago, a certain company invested S450,00 in a project with a simple interest of 8% per year.…

A: The following information has been provided in the question: Amount invested =$450,000 Simple…

Q: An investment of P8.5 M is expected to yield an annual income of P2.8 M. Determine the payout period…

A: Payback period is the time taken by the investment to recover the cost of the investment. The…

Q: A project is estimated to cost $251,272 and provide annual net cash flows of $56,000 for eight…

A: Internal rate of return is a technique which define rate of return earned by a project for a period.

Q: Determine the Total Capital cost of a facility project with initial infrastructure cost of…

A: Present value Concept: The money having today has greater value than receivable in future.

Q: mpany project capitalized for $ 50,000 invested in depreciable assets will earn a uniform annual…

A: The income return on investment is defined as cash flows.The interest or dividends paid by a…

Q: An investment of s80.000 is expected to generate a net annuol income of $27,000 for 5 years f the…

A: Investment = 80,000 Net Annual Income = 27,000 for 5 years MARR = 13% Total Time Period = 20 years…

Q: Alfarsi Industries uses the net present value method to make investment decisions and requires a 15%…

A: Net present value means the difference between the present value of cash inflow and present value of…

Q: For the following project, compute an EAA: Project A requires you an upfront payment of $262,782 and…

A: The equivalent annual annuity approach is the method of capital budgeting that evaluates the…

Q: Determine the average rate of return for a project that is estimated to yield total income of…

A: Step 1 Average rate of return (ARR) is a return that  reflects the percentage rate of return…

Q: The maintenance on a machine is expected to be P3,500, P7,000, P10,500, and P14,000 for the second,…

A: We will have to use the concept of time value of money which states that worth of money changes with…

Q: Suppose that a project has an immediate cost of $10 million and running costs of $1 million per year…

A: A. NPV = Cash inflow- Cash outflow Cash outflow= $ 10 million Cash inflow= Net profit/ interest rate…

Q: An engineering project has an investment amount of $126585 with an annual net profit of $53362 for 7…

A: Net Present Worth Or Value = Present Value of Cash Inflows - Initial Investment. Nominal rate = Real…