How many years will it take to double yourinvestment of $ 2000 if it has an interest rateof 6% compounded annually?Select one:а. 10 yearsb. 20 yearsС. 12 yearsd. 24 years3When dealing with uniform series, the normalsituation is to have the series begins at theend of period 2Select one:TrueFalse 1 Capitalized cost:Select one:a. is the net present value (NPV) of aperpetual series of cash flowsb. is a cash flow series that allows theprincipal to be withdrawn every year and theamortization will always remainc. is a special kind of present worth analysisthat chooses between alternatives withdifferent durationd. is the future sum needed to provide aperpetual series of cash flows that willsupport a capital project.

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How many years will it take to double your investment of $ 2000 if it has an interest rate of 6% compounded annually? Select one: а. 10 years b. 20 years С. 12 years d. 24 years 3 When dealing with uniform series, the normal situation is to have the series begins at the end of period 2 Select one: True False

How many years will it take to double your investment of $ 2000 if it has an interest rate of 6% compounded annually? Select one: а. 10 years b. 20 years С. 12 years d. 24 years 3 When dealing with uniform series, the normal situation is to have the series begins at the end of period 2 Select one: True False

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 10E

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A five-year project has an initial fixed asset investment of $613,600, an initial net working capital investment of $22,200. The project will have an annual operating cash flow (OCF) of (-$76,540). The fixed asset is fully depreciated over the life of the project and has no salvage value. The net working capital will be recovered when the project ends. The required return is 11.7 percent. What is the project's equivalent annual cost, or EAC? O-$248,052.76 O-$182,309.18 O-$147,884.01 O $242,212.22
What rent PSF would be needed to incentivize this development? Suppose new Class A Office developments cost $200 per square foot (psf), all in (i.e. land cost, construction, dev costs, reasonable dev profits) If the new building can be sold for $200 psf, development is feasible. Suppose investors are willing to pay $12.50 per dollar of (net operating) income on the building
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The California Forest Service is considering two locations for a new state park. Location Ewould require an investment of $3 million and $50,000 per year in maintenance. Location Wwould cost $7 million to construct, but the Forest Service would receive an additional $25,000per year in park use fees. The operating cost of location W will be $65,000 per year. The revenueto park concessionaires will be $500,000 per year at location E and $700,000 per year at locationW. The disbenefits associated with each location are $30,000 per year for location E and $40,000per year for location W. Use(a) The B/C method, and(b) The modified B/C method to determine which location, if either, should be selected, using aninterest rate of 12% per year. Assume that the park will be maintained indefinitely.
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4) Which of the following power plants is better investment, assuming 8% interest on the sinking fund and no salvage value in either case, taxes/insurance at 10% and interest on capital at 12%. Use ROR and Present Worth Method. - Coal plant which costs P1M, last 10 years and cost annually P100k to operate. - Fuel-oil plant which costs P800k will last 7 years and cost annually P70k to operate.
Consider these two alternatives.Alternative A Alternative BCapital investment OMR 6000 7500Annual revenues OMR 1800 2250Annual expenses OMR 500 750Estimated market valueOMR1200 1600Useful life 10 10MARR 12% 1. Recommend which alternative should be selected.2. How much capital investment of the expensive alternative have to vary so that theinitial decision would be reversed.
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NO tables, please, only formulas correct answers are: (i) n=12×5=60(months) --> ?0 = £16,775 (ii) L12 = £15,293.38 (iii) a) I13 = 98.4 and C13 = 161.6 --> L13 = L12 − C13 = 15,131.79 b) I14 = 97.36 and C14 = 167.64
Q2) One of the energy companies incurred miscellaneous costs and a group of engineers analyzed the costs according to the long-term investment contract. Answer the following points based on the above situation: A) How would you classify these possible costs based on line of your study that will be included in each annual economic assessment. Within short clarification for each possible costs that you suppose to mentione it? B) Give an simple example about each costs-line. C) How will the level of revenue be determined economically? Clarify this statement?