Imagine you are investing $100,000 into a project A. MARR is 15% This investment will bring you the following positive cash flows: Year 1: $31,000 Year 2: $31,000 Year 3: $31,000 Year 4: $31,000 Year 5: $31,000 a.Find the future worth of the investment b.You found another mutually exclusive alternative B that requires you to invest an additional $20,000 compared to investment A. It will bring $36,500 of net annual income for 5 years. Is this alternative better than the original one? Use incremental analysis to evaluate them. c.What are the IRRs of alternative A and alternative B? Please calculate with formula.

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A: Solution- (1)- IRRr of the project given by=-6000+3000/1+r-500/1+r2+2800/1+r3-100/1+r4+6000/1+r5=0

Q: 17

A: The computation of the IRR as follows:

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A:

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.