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A: In the mentioned question we have been asked what actually PW is and do the given statement is true…
Q: Options are: P3 P3--p2 C+E A+B+C A D+E+F F B+D A+B+C+D+E P1-P2 G+H+C+E
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
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A: Cost of Truck = 84,000 life = 6 MV = 0 Receipt less Expenses per year = 18,000 MARR = 19%
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Q: An equipment can be purchased for $84,000. Its expected useful life is eight years at which time its…
A: Purchasing Cost = 84,000 n = 8 years MV = 5% of Purchasing Cost
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Q: An investment of 15,000,000 yields net annual revenues of 11,500,000. What is the simple payback…
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Q: If the PW of an investment is negative, then we will recommend the investment. True or False?
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If the company's MARR is known to be 10%, is the investment justified?
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- An investment of 15,000,000 yields net annual revenues of 11,500,000. What is the simple payback period?A football team wants to invest in an airplane to transport the team and staff around the country. The expected life of the airplane is 20 years and its operation will cost $750,000 on an annual basis. If the manager declares that they can spend at most $4 million on a new plane, and the MARR is 6%, find the AW.A cookie company wants to expand its retail operations. Based on a preliminary study, 10 stores are feasible in various parts of the country. The cash flow at each store is expected to be $150 per year for five consecutive years. Each store requires an immediate investment of $400 to set up operations. Assuming a required rate of return 6%, what is the NPV of each store?
- Today, you have $30,000 to invest. Two investment alternatives are available to you. One would require you to invest your $30,000 now, the other would require the $30,000 investment two years from now. In either case, the investments will the end five years from now. The cash flows for each alternative are provided below. Using a MARR of 14%, what should you do with the $30,000 you have?eBook Net Present Value Method—Annuity Take a Load Off Hotels is considering the construction of a new hotel for $12,000,000. The expected life of the hotel is 6 years with no residual value. The hotel is expected to earn revenues of $12,400,000 per year. Total expenses, including straight-line depreciation, are expected to be $10,000,000 per year. Take a Load Off's management has set a minimum acceptable rate of return of 12%. a. Determine the equal annual net cash flows from operating the hotel.$fill in the blank 1 b. Calculate the net present value of the new hotel, using the present value factor of an annuity of $1 table below. If required, round to the nearest dollar. If the net present value is negative, enter the amount using a minus sign. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791…An untreated electric wooden pole that will last 10 years under certain soil condition cost₱20,000. If a treated pole will last for 20 years, what is the maximum justifiable amount thatcan be paid for the treated pole, if the maximum return on investment is 20%. Consider annualtaxes and insurance amount to be 1% of first cost.
- A new municipal refuse-collection truck can be purchased for $84,000. Its expected useful life is six years, at which time its market value will be zero. Annual receipts less expenses will be approximately $18,000 per year over the six-year study period. At MARR of 19%, calculate the return on investment of the project.WHICH IS CORRECT OPTION IN THE SECOND SUBPART .A new utility service truck can be purchase for $70,043. Its expected useful life is six years, at which time its market value will the zero. Annual receipts less expenses will be approximately $28,084 per year over the six-year study period. Compute Present Worth (PW) with a MARR of 20% to determine whether this is good investment.
- Parker County Community College (PCCC) is trying to determine whether to use no insulation or to use insulation that is either 1 inch thick or 2 inches thick on its steam pipes. The heat loss from the pipes without insulation is expected to cost $1.50 per year per foot of pipe. A 1-inch thick insulated covering will eliminate 89% of the loss and will cost $0.40 per foot. A 2-inch thick insulated covering will eliminate 92% of the loss and will cost $0.85 per foot. PCCC Physical Plant Services estimates that there are 250,000 feet of steam pipe on campus. The PCCC Accounting Office requires a 10%/year return to justify capital expenditures. The insulation has a life expectancy of 10 years. Determine which insulation (if any) should be purchased using annual worth analysis.If the PW of an investment is negative, then we will recommend the investment. True or False?Options are: P3 P3--p2 C+E A+B+C A D+E+F F B+D A+B+C+D+E P1-P2 G+H+C+E