Angel healthcare Ltd., has 2 investment opportunities, each costing $120000 and each have expected profit as shown below: Years Project "A' Project "B' ($) ($) 1 40000 30000 2 30000 40000 3 20000 35000 4 15000 30000 Year 1 2 3 PVIF @ 10% 0.909 0.826 0.751 4 0.683 Compute NPV & Profitability Index, Suggest which Project to be preffered at 10%cost of capital
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Angel healthcare Ltd., has 2 investment opportunities, each costing $120000 and each have expected profit as shown below: Years Project "A' Project "B' ($) ($) 1 40000 30000 2 30000 40000 3 20000 35000 4 15000 30000 Year 1 2 3 PVIF @ 10% 0.909 0.826 0.751 4 0.683 Compute NPV & Profitability Index, Suggest which Project to be preffered at 10%cost of capital
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- Randall Systems in considering four projects A, B, C and D that have risks associated with the producing benefits. Based on the information given in the table below, which project is more desirable for the company? Project A Project B Project C Project D EUAW Prob. EUAW Prob. EUAW Prob. EUAW Prob. $2,000 0.2 $3,000 0.1 -$5,000 0.2 $4,000 0.4 $1,500 0.5 -$2,500 0.4 $6,500 0.5 $2,500 0.3 $3,000 0.3 $3,500 0.5 $1,000 0.3 -$2,000 0.310.6 This optional problem requires knowledge of statistics. Heywood Home Healthcare is evaluating a project with the following net cash flows and probabilities: Time 0 Year 1 Year 2 Year 2 Year 3 Year 4 Prob = 0.2 ($100,000) 20,000 20,000 20,000 20,000 30,000 Prob = 0.6 ($100,000) 30,000 30,000 30,000 30,000 40,000 Prob = 0.2 ($100,000) 40,000 40,000 40,000 40,000 50,000 The year 5 values include salvage value. Heywood’s corporate cost of capital is 10 percent. What is the project’s expected NPV on the basis of the scenario analysis? What is the project’s standard deviation of NPV? Assume that Heywood’s managers judge the project to have lower-than-average risk. Furthermore, the company’s policy is to adjust the corporate cost of capital up or down by 3 percentage points to account for differential risk. Is the project financially attractive?Please no written by hand and no emage The following data are available for two mutually exclusive projects: Project A $16,900,000 PW(benefits) PW(operating and maintenance costs) PW(capital cost) 4,700,000 7,600,000 Complete parts (a) through (e) below. a. Compute the benefit-cost ratios for both projects. Project B $15,100,000 9,300,000 3,000,000 The ratios for projects A and B, respectively, are 1.374 and 1.228 (Type integers or decimals rounded to three decimal places as needed.) b. Compute the modified benefit-cost ratios for both projects. The ratios for projects A and B, respectively, are 1.605 and 1.933 (Type integers or decimals rounded to three decimal places as needed.) c. Compute the benefit-cost ratio for the increment between the projects. Select the correct choice below and, if necessary, fill in the answer box to complete your choice. OA. The ratio is (Type an integer or decimal rounded to three decimal places as needed.) B. The ratio is undefined. d. Compute the…
- Haya International are considering a project that is susceptible to risk. An initial investment of OMR90,000 will be followed by four years each with the following ‘most likely’ cash flows (there is no inflation or tax): OMR OMR Annual Sales 400,000 (volume of 100,000 units multiplied by estimated sales price of OMR 4) Annual Costs Labour 200,000 Materials 40,000 Other 10,000 250,000 (250,000) 150,000 The initial investment consists of OMR80,000 in machines, which have a zero scrap value at the end of the four-year life of the project and OMR10,000 in additional working capital which is recoverable at the end. The discount rate is 10 per cent. Required : Calculate the NPV and show the sensitivity of NPV to changes in the following: Increase in sales price by 10%; Decrease in discount rate by 10%Manager Cafe "Blue Sky" is considering investing 2 (two) projects. Project X is an investment of $ 75,000 to replace a working but outdated cooling equipment. Project Y is a $ 150,000 investment to expand the dining facilities. Relevant cash flow data for the two projects over the expected 2 years are as follows: Project X Year 1 Year 2 Probability Cash Flow Probability Cash Flow 0.16 $0 0.08 $0 0.66 $50000 0.82 $50000 0.18 $100000 0.10 $100000 Project Y Year 1 Year 2 Probability Cash Flow Probability Cash Flow 0.50 $0 0.13 $0 0.50 $200000 0.74 $100000 0.13 $200000 Calculate: Expected value, standard deviation, and coefficient of variation for cash flows from each project. Compute: Risk-adjusted NPV for each project using a cost of capital of 15% for riskier projects, and 12% cost of capital for less risky projects. Which project is more…The table below contains information about an environmental clean-up project in the township of Hiles. Shorten the project threethree weeks by finding the minimum-cost schedule. Assume that project indirect costs and penalty costs are negligible. Identify activities to crash while minimizing the additional crash costs. Activity Normal Time (weekweeks) Crash Time (weekweeks) Cost to Crash ($ per weekweek) Immediate Predecessor(s) A 55 44 300300 None B 77 44 5050 None C 77 66 300300 A D 77 66 250250 A E 11 11 long dash— B F 33 33 long dash— C, D G 55 44 200200 D, E H 44 22 200200 F I 22 22 long dash— G Part 2 Fill in the table below with the activity times after crashing to show the resulting schedule. (Enter your responses as…
- The owner of Maxwell's Coffee and Cakes wants to start selling products that feature her coffee shop's logo. Her first product will be backpacks which she will sell for $137.44 each. She can buy the backpacks for $21.97 and have them customized for $10.92 apiece. There is a one-time set up charge of $1,525.15 for customization. In order for the project to go forward, she needs to show a $14,718.68 profit. How many backpacks will she have to sell in order for this project to be acceptable? Round to the nearest whole number.The project described in the following table has just begun. It is scheduled to be completed in 11 weeks.Use Table B1 and Table B2. Activity Estimated Time(weeks) Standard Deviation(wks.) 1-2 4 0.70 2-4 6 0.90 1-3 3 0.62 3-4 9 1.90 a. If you were the manager of this project, would you be concerned? (Round your intermediate calculations to 2 decimal places and "Probability" values to 4 decimal places.) because the probability of finishing on schedule is only about . b. If there is a penalty of $5,000 a week for each week the project is late, what is the probability of incurring a penalty of at least $5,000? (Round your intermediate calculations to 2 decimal places and "Probability" values to 4 decimal places.) Probability Have worked this with various formulas and all come back wrong. Where am I making a mistakeYou are the Project Analyst for Nairobi Project Advisors who have been asked by a client to advise on which of the following two projects should be accepted. Each project costs US$ 10,000 and each entails a 12% cost of capital: Year Expected Net Cash flows Project X Project Y 0 ($ 10,000) ($ 10,000) 1 6,500 3,500 2 3,000 3,500 3 3,000 3,500 4 1,000 3,500 a) Advise on which project should be undertaken using the Pay Back Period (PBP), Net Present Value (NPV), Internal Rate of Return (IRR), and Modified Internal Rate of Return (MIRR) assuming: i. The projects are independent ii. The projects are mutually exclusive
- 14. Stephanie, the supply chain analyst of Nestle is asked to present an expansion plan for thecompany. The plan is either to construct a plant, open a distribution center, or do nothing. Fromthe plant construction, the company will gain 80,000Php if the market turns favorable, loss of10,000 if average, and loss of 50,000 if unfavorable. From opening a distribution center, thecompany will gain 40,000Php if favorable, gain 20,000Php if average, and loss of 30,000Php ifunfavorable. And if the decision is do nothing, the company will gain nothing regardless of themarket turnout. Then, he was able to determine further the probability of occurrence of eachtype of market. The probability of occurrence is 60%, 25%, and 40%, respectively. He also foundout that he can buy the information on what will really happen to the market for 2,000Php.a. What should be the analyst’s decision?b. How much gain or loss will he expect for the company?c. Should he buy the perfect information? Why or why not?d.…The table below contains data for the installation of new equipment in a manufacturing process for a steel corporation. Your company is responsible for the installation project. Indirect costs are $6,000 per week, and a penalty cost of $10,000 per week will be incurred by your company for every week the project is delayed beyond week 15. Activity Immediate Predecessor(s) Normal Time (weeks) Crash Time (weeks) Normal Cost ($) Crash Cost ($) A None 2 1 7,000 10,000 B None 2 2 3,000 3,000 C A 3 1 12,000 40,000 D B 3 2 12,000 28,000 E C 1 1 8,000 8,000 F D, E 5 3 5,000 15,000 G E 3 2 9,000 18,000 H F, G 8 6 14,000 32,000 Construct a network diagram for the project. What are the project completion time and the total cost under normal conditions? What is the shortest time duration for this project regardless of cost? What is the resulting total cost? What is the…Q You have been asked to select between three projects. Project A has a netpresent value of $54,750 and will take six months to complete. Project B hasa net present value of $85,100 and will take two years to complete. ProjectC has a net present value of $15,000 and a benefit-cost ratio of 5:2. Whichproject should you choose?A. Project AB. Project BC. Project CD. There is not enough information to decide Q Which of the following is a defect?A. A mistake made by a team member on the jobB. A change that the team needs to make in how they do the workC. A project management plan that does not meet its requirementsD. A change request that’s been rejected by the change control board