Question 2 Compute the BC ratio at i 10%, for the following project and justify if you selected it or not, based on economic view point (Benefits) $30 $30 $ 20 $ 20 $5 $5 $8 $8 $10 $10 (Recurring costs) (Investment)
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- Q)1.The benefit-cost ratio of a project represents its time-valued benefit per unit investment (first cost) Select one: True False9. A company is considering a £70,000 investment in a machine that would produce 10,000 items per year for 3 years before being sold for £10,000; these would incur £7 of variable costs and sell for £12 each. Extra fixed costs incurred would be £23,000 pa. Adrian has 10% cost of capital and has calculated the NPV to be £4,632. Tax can be ignored. What is the sensitivity of the decision to changes in the estimate of sales volume? A) 1.6% B) 2.7% C) 3.7% D) 6.9%NPV. A proposed nuclear power plant will cost $2.2 billion to build and then will produce cash flows of $300 million a year for 15 years. After that period (in year 15), it must be decommissioned at a cost of $900 million. a.What is project NPV if the discount rate is 5%? b. What if the discount rate is 18%? 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.
- 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?Calculation question: Suppose the following data accurately estimates the costs and benefits you outlined in #1. Calculate NPV assuming a discount rate of 4%. Should ISU invest in this project? Year Costs Benefits 0 1000 400 1 200 500 2 200 500 3 200 500A city has decided to build a sofiball complex, and the city council has already voted to fund the project at the level of $800,000 (initial capital investment ). The city engineer has collected the following financial information for the complex project:• Annual upkeep costs: $120.000• Annual utility costs: $13,000• Renovation costs: $50,000 for every five years• Annual team user fees (revenues): $32,000• Useful life: Infinite• l interest rate: 8%lf the city can expect 40.000 visitors to the complex each year, what should be the minimum ticket price per person so that 1he city can break even'?
- The Vice President of the Republic of Zambia launched a pilot project to clear canals on the Barotse flood plains in Western The pilot project estimated to cost 77 million kwacha will be implemented by China Railways and Samutala Management Services. Discus using suitable examples; 3 Secondary benefits the canal clearing project will bring to the people of Western Province.11 - Which of the following statements about Engineering Economics is false?A) Engineering Economics requires knowledge of cost management.B) NoneC) Engineering Economy means producing the best quality product/service at the most affordable price.D) Engineering Economics means being able to calculate profit and loss on investments.E) Engineering Economics means making cost-benefit calculations.The quality firm mentioned earlier, are having another project that is facing a problem to meet the deadline, the information provided below will help in crashing the project to meet the deadline.- Total Project Indirect cost = 500$.- Indirect Reduction in Cost/day= 60$ I. What is the total project cost?II. What is the slope value and max crash for the Improvement task ?III. What is the recommended task to crash first in this project?IV. What is the new total project cost after the firs crash iteration ?
- 1. Hardchoice Corp. is a firm considering prospective capital budgeting projects. Selected data on the projects follow: Image attached 1a) Consider only projects A and B by examining the incremental project cash flows B- A. They are mutually exclusive opportunities. If the IRRB-A = 12% and the discount rate is 15% then what is your decision? Pls show formula used. Final dollar answers should be rounded to two decimal places. Interest rate answers should be rounded to 6 decimal places if expressed as a decimal or 4 decimal places if expressed as a percent. Use timeline if necessary. No excel .Thanks!1.CEO of a state-owned airline receives results of initial cost estimates The new public access road to the airport costs a total of $ 4 million. And subsequent costs The new installment can be estimated at around $ 300,000. Benefits for 550,000 passengers Per year and 90,000 per year are defined as non-profit. 4% discount per annum and available Duration: 5 years. Calculate the B / C ratio analysis. Let be the difference between B-C. Plz do fast asap..The state of Glottamora has $300 million remaining in its budget for the current year. One alternative is to give Glottamorans a one-time tax rebate. Alternatively, two proposals have been made for state expenditures of these funds. The first proposed project is to invest in a new power plant, costing $300 million and having an expected useful life of 20 years. Projected benefits of the new power plant are as follows: Years Benefits per Year ($ Millions) 1 - 5 0 6 - 20 60 The second alternative is to undertake a job retraining program, also costing $100 million and generating the following benefits: Years Benefits per Year ($ Millions) 1 - 5 60 6 - 10 42 11 - 20 12 The state Power Department argues that a 5 percent discount factor should be used in evaluating the projects because that is the government’s borrowing rate. The Human Resources Department suggests using a 12 percent rate because that more nearly equals society’s true…