Ihitiative in Texas will significantly expand the wind-generated ivate out the state. The cash flow for one phase of the project involving Central Point E mission utility company, is shown. Given reinvestment rate of 14% per year for e 10.0/
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- A public-private initiative in Texas will significantly expand the wind-generated energy through- out the state. The cash flow for one phase of the project involving Central Point Energy, a trans-mission utility company, is shown. Given reinvestment rate of 14% per year for excess funds and 10 % per year for borrowing rate for extra funds, determine: given MARR = 12% Year Net cash flow 0 -50000 1 +22000 2 +38000 3 -2000 4 -1000 5 +5000 a) How many number of ROR values is expected and why? b) Calculate the external rate of return (MIRR). c) Is the project economically viable?4 QUESTION 9 A new production system for a factory is to be purchased and installed for $153,484. This system will save approximately 300,000 kWh of electric power each year for a 4year period. Assume the cost of electricity is $0.10 per kWh, and factory MARR is 10% per year, and the salvage value of the system will be $8,496 at year 4 Calcutate the FW of the above investment and insert the result below.A project your firm is considering for implementation has these estimated costs and revenues: an investment cost of $58,548, maintenance costs that start at $5,000 at end-of-year (FOY) one and increase by $1,000 for each of the next four years, and then remain constant for the following five years; savings of $20,007 per year (EOY 1-10); and finally a resale value of $33,311 at EOY 10. If the project has a 10-year life and the firm's MARR is 10% per year, what is the present worth of the project?
- ou've estimated the following cash flows (in $) for a project: Year Cash flow 0 -5,400 1 1,125 2 1,848 3 2,540 The required return for the project is the company's cost of capital of 8%. What is the MIRR for the project (using the reinvestment approach)?A specialized automatic machine costs $300.000 and is expected to save $111,837 50 per year while inoperation. Using a 12% interest rate, what is the discounted payback period?Select onea. 4b 8c.5d 7e 6A small company purchased now for $23,000 will lose $1,200 each year the first four years. An additional$8,000 invested in the company during the fourth year will result in a profit of $5,500 each year from the fifthyear through the fifteenth year At the end of 15 years the company can be sold for $33,000The ERR when externeal reinvestment rate per period is 12%Select onea. 10.74%b. 12.3%c. 19.25%d. 8.5% Ans both.. otherwise don't give ansa young engineer wishes to become a millionaire by the time he is 60 years old. He belives that by careful investment he can obtain a 15% rate of return. He plans to add a uniform sume of money to his investment program each year, beginning on his 20th birthday and continuing through his 59th birthday. How much money must the enigneer set aside in this project each year? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
- A loan of P50T whose interest is 15% compounded semiannually, is to be discharged by a series of 10 semiannual payments, the 1st payment to be made 6 months after consummation of the loan. The 1st 6 payments will be P5T each, while the remaining 4 payments will be equal & of such amount that the final payment will liquidate the loan. What is the PV of the 1st 6 payments?Lim Bon Fing Y Hermanos Inc has offered for sale its two-storey building in thecommercial district of Cebu City. The building contains two stores on the ground floor anda number of offices on the second floor.A prospective buyer estimates that if he buys this property, he will hold it for about 10years. He estimates that the average receipts from the rental during this period to beP350,000.00 and the average expenses for all purpose in connection with its ownershipand operation (maintenance and repairs, janitorial services, insurance, etc.) to beP135,000.00. He believes that the property can be sold for a net of P2,000,000 at the endof the 10th year. If the rate of return on this type of investment is 7%, determine thecash price of this property for the buyer to recover his investment with a 7% return beforeincome taxes.ANSWER: P2,526,768.61A trust fund is to be established for providing the costs associated with a small engineering laboratory for the Engineering College. The following costs are required for the engineering laboratory: (1) The construction cost is$1,500,000and the initial equipment cost is$900,000; (2) The annual laboratory operating cost is$250,000for the first 3 years and$200,000thereafter; (3) The cost of equipment replacement is$350,000every 6 years, beginning 6 years from now. How much money is required in the trust fund now to build the engineering laboratory and maintain its perpetual operation and equipment replacement? The interest rate is 8%per year.
- A junior PM determines the present worth of a project to be $56,417. He misplaced the full set of calculations but knows that the project lasts 5 years with a first cost of $180,000, and a set of equal cash flows at the end of each year. MARR used was 10%. What is the IRR for this project?A man plans to invest for a quarry operation which he will gain a net income of P 800, 000.00every end of the year for 5 years then the operation will be terminated. At what rate (%) does he receive interest on his P 5, 000, 000.00 investments at the end of each year if he accrues a replacement fund to recover his capital by annual investments at 5%?The will of a wealthy philanthropist left 5M to establish a perpetual charitable foundation. The foundation trustees decided to spend 1.2M to provide facilities immediately and to provide 100,000.00 of capital replacement at the end of each 5-year period. If the invested funds earned 12% per annum, what would be the year-end amount available in perpetuity from the endowment for charitable purpose