QUESTION 2 The company received an offer from ParkWay to invest NOW $15,000 and take back annually $1200 for ever. The IRR is: O 10.0% 09% 8% 00 1.5%
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- 7. after a lengthy meeting with the marketing team about a new product being introduced, your boss asks you to look into the project. the marketing team is estimating a 15 yer profit of $220,000 (annuity). That amount is expected to grow by an additional $25,000 (gradient) each year through year 5, level off at year five's amount through year 10, then decrease by $15,000 per year (decreasing gradient) through year 15. You determine that the initial cost of the production system will be $1,600,000. What is the PW of this project if the MARR is 25%? Enter your answer to the nearest whole dollar amount(PLEASE ANSWER REQUIRED ROR NOT THE FEE NEEDED TO BE PAID) Should this be collected by retailers when electronic products are sold to consumers, or should it be assessed at end-of-life (when consumers return products for recycling)? If collected when products are sold, what is the required rate of return in each of the following circumstances (work this regardless of when fee is collected), assuming the fees can be safely invested in the interim? If collected at end-of-life, the fee would be the direct cost to recycle.Assume that consumers keep devices on the following schedule:Cell phones, tablets, small laptops (screen size: 4”-15”): 2 years, costs $3.75 on average to recycle, upfront fee = $3.00Large laptops, desktop monitors, small TVs (screen size: 15”-35”): 3 years, costs $5.50 on average to recycle, upfront fee = $4.00TVs (screen size: > 35”): 4 years, costs $8.25 on average to recycle, upfront fee = $5.003) Find the rate of return (IRR-Ch16.3) on a project that will cost $100,000 today and $400,000 in 3 years from today, BUT will return $50,000 at the end of every year for 11 years (4)
- A transit system is considering buying 6 more buses to provide better service. It will cost $100,000 for buying a new bus and $15,000 per year for maintenance and operation for the following 8 years. If the city’s MARR is 8%, what is the equivalent uniform annual cost of this project? Assume the bus has no value at the end of 8 years.What would be the CAPITALIZED COST of $ 10,000 every 5 years forever, starting 5 years from today with 3% and 8% annual interest?, B). Support why the difference between both capitalized costs.2. 1. Company A is eyeing to purchase a piece of factory equipment for P300,000. It is expected to generate P150,000 of additional annual profit during those years. The equipment could would only last for three years. The company thinks it can sell the equipment for scrap afterward for about P10,000. Using IRR, will it be a good decision for the company to purchase the equipment considering a return of 10%.
- You are a project manager reporting to the general manager at your organisation. You are aware thatthe general manager will retire in 4 years, and it is the company's policy that whoever has to take upthat position should have at least a Master of Business administration degree. You can either applyfor an unpaid study leave and get a R270 000 interest free loan from the company for upkeep duringthe study of the degree on full-time basis for one and half years, or you can study on a part-time basisfor 3 years whilst going to work and pay a personal Tutor R12 000 a month for three years. The costof study is R200 000.00 regardless of whether it's part time or full time and the company is preparedto pay for your studies in either case. On a full-time basis, the probability of passing is 1 whereas it is0.5 for part-time study due to pressure from both work and study. Your salary is R30 000 per month.a. Develop the problem in this situation? Please state it in an explicit and precise…J 7 What is the ordinary simple interest on 7000 for 8 mos and 15 days if the rate of interest is 15%.Compute the rate of return on the $40,000 investment that yields a recurring benefit of $5,000 every other year starting 1 year from now and a benefit of $2,500 every other year starting 2 years from now. (ANS: 9.52%) How to solve this?
- What amount of money invested today at 15% interest can provide the following scholarships: P30,000 at the end of each year for 6yrs; P40,000 for the next 6 yrs and P50,000 thereafter? Complete solution using the formula.An investor made an investment of 55000 AED at the end of first year. He also made an investment of 7500DAED at the end of the third year. Lastly he made an investment of 90000AED at the end of the 6th year. If the profit rate is 5.5%, what equal annual investment he would have made for the same period instead of the 3 investments? 0 30224.70 AED O 36287.61 AED O 166577.86 AED O 34409.71 AED O 166246.31 AEDA business executive is offered a management job at Generous Electric Company, which offers him a 5-contractyear that calls for a salary of $62,000 per year, plus 600 shares of GE stock at the end of the 5 years. This executive is currently employed by Fearless Bus Company, which also has offered him a 5-year contract. It calls for a salary of $65,000, plus 100 shares of Fearless stock each year. The Fearless stock is currently worth $60 per share and pays an annual dividend of $2 per share. Assume end-of-year payments of salary and stock. Stock dividends begin one year after the stock is received. The executive believes that the value of the stock and the dividend will remain constant. If the executive considers 9% a suitable rate of return in this situation, what must the Generous Electric stock be worth per share to make the two offers equally attractive? Use the future worth analysis method in your comparison.