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- 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%A certain project with annual benefit of P 50,000 at the end of each year for a period of 6 years. Assuming money is 10% and benefit ratio is 1.02, compute the cost of the project. a. P426,896.00 b. P426,986.00 c. P426,968.00 d. P462,986.00For a project with: F.C. = JD 4000 Extra cost at the end of the 4 year = 2500 Annual income = 2000 n= 5 years a) Calculate the IRR (i*) b) is it acceptable, if MARR=10% per year?
- SHOW THE BA II PLUS CALCU BUTTONS A 50- year project has a cost of $500,000 and has annual cash flows of $100,000 in years 1-25, and $200,000 in years 26-50. The company's required rate is 8%. Given this information, calculate the IRR of the project. Ans 20.20For a project with an initial investment of $30,000 and cash inflows of $12,000 a year for three years, calculate NPV given a required return (I/Y) of 3.65%. Select one: a. $1,265 b. $3,524 c. $4,839 d. $730Determine the future values if $25,000 is invested in each of the following situations:a. 8% for 20 yearsb. 12% for 5 yearsc. 15% for 3 years
- A proposed project will cost $1,400 five (5) years from today. Beginning at the end of year six, $500 in annual benefits will be received, continuing until the end of year nine. What is the project’s present (year 0) worth at MARR = 10%?Write the objectives and procedure of value engineering. Assume a sum of $10,000 is invested for one year at 10% interest. What is the future value of that money?In our company the WACC = 5% and the PBT cannot be more than 5 years. Consider the following projects and financial information: Project 1 has an NPV = -20k and an IRR = 12% and a PBT of 36 months; Project 2 has a NPV = -50k and an IRR = 15% and a PBT of 35 motnhs; Project 3 has an NPV = 200k and an IRR= 15% and a PBT of 75 months; Project 4 has a NPV = 95k and an IRR= 7% and a PBT of 12 months. Which project should we choose and why?
- Assuming a cost of capital of 5% and that $60,000 is the correct profit estimate each year for the next 10 years, what is the IRR if NPV=463,304 a. 32.0% b. 8.1% c. 21.0% d. 2.8%The cost of the project is $100,000. You expect the project to make $500,000 in 7years (CF of year 7 = $500,000). Youjr cost of capital is 15%. The IRR for this project equals___. A)25.85%B)23.94%C)22.01%D)17.85%U3 Company Is considering three long-term capital investment proposals. Each Investment has a useful llfe of 5 years. Relevant data on each project are as follows. Project Bono Project Edge Project Clayton Capital investment $169,600 $185,500 $214,000 Annual net income: Year 1 14,840 19,080 28,620 2 14,840 18,020 24,380 3 14,840 16,960 22,260 4 14,840 12,720 13,780 5 14,840 9,540 12,720 Total $74,200 $76,320 $101,760 Depreciation is computed by the straight-line method with no salvage value. The company's cost of capital is 15%. (Assume that cash flows occur evenly throughout the year.) [Use the factor table.] 1) Compute the cash payback period for each project. (Round to two decimals.) 2) Compute the net present value for each project. (Round to nearest dollar.) 3) Compute the annual rate of return for each project. (Round to nearest dollar.)