Find the explicit reinvestment rate of return (ERRR) for the project shown in Figure (5). M.A.R.R =10%, %e=%15. Is the project accepted economically? *
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- a) Draw the cash flow diagram for a project if the contractor expenditures in the beginning of the project is (25000$) and he receives payments (8000$, 10000$, and 13000$) after (2, 4, and 8) months respectively. b) For the question (Q2-a), what is the compound amount of money if the contractor save the initial cost (25000$) in a bank offering interest rate (9%) yearinyGiven four proposals for funding a new project with a 100M limit on capital funding and the MARR is established at 12% per year. Project First Cost Estimated Annual Savings Project Life, Years W 12M 5M 25M 7.3M Y 45M 12.1M 60M 9M 8 Use the exact internal rate of return method to determine which of the four independent projects should be funded. Write the value of the acceptable project accordingly/in sequence (W/X/Y/Z). ANSWER for ALTERNATIVE 1: Blank 1 ANSWER for ALTERNATIVE 2: Blank 2 Blank 1 Add your answer Blank 2 Add your answerAttach a complete solution. Draw the cash flow diagram.Calculate the capitalized cost of a project that has an initial cost of P8,000,000 and an additional cost of P250,000 at the end of every 8 years. The annual operating costs will be P150,000 at the end of every year for the first 5 years and P200,000 thereafter. In addition there is expected to be recurring major rework cost of P500,000 every 13 years. Assume i=12%
- Determine the exact simple interest on P1,000 for the period from January 10 to December 31, 2012 at 12% interest rate. What is the nrincinal mount if the3. Consider the investment project with the net cash flows as shown in the following table. Caculate the value of X if the project's IRR is 23%? End of year (n) Net cash flow -$12,000 $2,500 $5,500 1 2 X 4Find the equivalent annual payment of the following obligations at 20% interest rate. End of Year Payment 1 P 8,000 2 P 7,000 3 P 6,000 4 P 5,000
- Eng David is required to pay 57500pesos at the end of 30 days of 60000pesos at the end of 80 days.determine the rate of interest per annum.The initial construction cost of a project is $200000 which should be paid at the beginning of the construction period (time =0). Extra expenditures planning to be paid during operation period, which are ($5000) at the end of the first year, $3000 at the end of the second year, $1000 at the end of the third year, $1000 at the end of the fifth year and $ 1000 at the end of the sixth year. If the project life is 10 years and the interest rate is %10, draw the cash flow diagram and find a) the present worth of the project, b) the future worth at the end of the project life, c) the annual payment worth.What will be the maturity value of PhPl12,000 invested for 4 years at 15% compounded quarterly? A. PhP21,626.71 B. PHP21,626.73 C. PHP21,626.75 Answer:
- A man bought an equipment costing P60,000 payable in 12 quarterly payments each installment payable at the beginning of each period. The rate of interest is 24% compounded quarterly. What is the amount of each payment2. If the price/demand function is p-50-1.25x and the total cost function is 160+10x, where x is the number of units (D) in thousands and cost is in dollars, determine the following; a. General Equation of the Total Profit (profit function) b. General Equation of the Total Revenue (revenue function) Breakeven points Note: Put Final Answer in the yellow box C.Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 12 percent, and that the maximum allowable payback and discounted payback statistics for your company are 2.5 and 3.0 years, respectively. Time: Cash flow: 0 1 2 3 -$227,000 $65,000 $83,200 $140,200 4 $121,200 5 $80,400 Use the payback decision rule to evaluate this project. Note: Round your answer to 2 decimal places. Payback years