Solve Both questions...don't attempt for single question MC.12.072.AlgoQuestion 9 of 45Carlyle Inc. is considering two mutually exclusive projects. Both require an initial investment of $14,200 at t = 0. Project S has an expected life of 2 years withafter-tax cash inflows of $7,400 and $14,000 at the end of Years 1 and 2, respectively. In addition, Project S can be repeated at the end of Year 2 with nochanges in its cash flows. Project L has an expected life of 4 years with after-tax cash inflows $5,200 at the end of each of the next 4 years. Each project has aWACC of 9%. What is the equivalent annual annuity of the most profitable project? Do not round your intermediate calculations.a. $816.90b. $3,152.15c. $1,178.81d. $2,485.64e. $3,435.85O Icon Key Senate Inc. is considering two alternative methods for producing playing cards. Method 1 involves using a machine with a fixed cost (mainly depreciation) of$19,000 and variable costs of $2.70 per deck of cards. Method 2 would use a less expensive machine with a fixed cost of only $5,000, but it would require avariable cost of $3.20 per deck. The sales price per deck would be the same under each method. At what unit output level would the two methods provide thesame operating income (EBIT)?a. 38,000b. 14,000.c. 48,000d. 10,000Oe. 28,000

cashflow Disounted Cashflow year project S Project L PVF@ 9% project S Project L 0…

Senate Inc. is considering two alternative methods for producing playing cards. Method 1 involves using a machine with a fixed cost (mainly depreciation) of $19,000 and variable costs of $2.70 per deck of cards. Method 2 would use a less expensive machine with a fixed cost of only $5,000, but it would require a variable cost of $3.20 per deck. The sales price per deck would be the same under each method. At what unit output level would the two methods provide the name operating income (EBIT)? a. 38,000 b. 14,000 c. 48,000 O d. 10,000 Oe. 28,000

Senate Inc. is considering two alternative methods for producing playing cards. Method 1 involves using a machine with a fixed cost (mainly depreciation) of $19,000 and variable costs of $2.70 per deck of cards. Method 2 would use a less expensive machine with a fixed cost of only $5,000, but it would require a variable cost of $3.20 per deck. The sales price per deck would be the same under each method. At what unit output level would the two methods provide the name operating income (EBIT)? a. 38,000 b. 14,000 c. 48,000 O d. 10,000 Oe. 28,000

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter12: Capital Budgeting: Decision Criteria

Section: Chapter Questions

Problem 13P

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