the project' s net cash flow is listed as follows. Please calculate its simple payback period and discounted payback period (i=10%). End of Year 1 2 3 4 5 Net Cash Flow -$42,000 $12,000 $11,000 $10,000 $10,000 $9,000
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- Consider the following cash flow profile and assume MARR is 10%/year. EOY NCF Part a Determine the ERR for this project. 10 1 2 3 4 5 6 % -$125 $27 $27 $27 $27 $27 $27 Carry all interim calculations to 5 decimal places and then round your final answer to 1 decimal place. The tolerance is ±0.2.kuzukuzu12121@outlook.com just sent here I NEED EXCEL FİLE. Determine the NPW, AW, FW and IRR of the following engineering project. Initial Cost ($400,000) The Study Period 15 years Salvage (Market) Value of the project 15% of the initial cost Operating Costs in the first year($9,000) Cost Increase 3% per year Benefits in the first year $40,000 Benefit Increase 9% per year MARR 8% per year Is the Project acceptable? WHY?Mary, a project manager for ABC Ic., is reviewing a product quality improvement project. She has determined that the project's Annual Worth of $3,396. for a period of 8 years. She now has to calculate the IRR for the project but unfortunately she has lost some information about the cash flows. She knows only that the project has: a 8-year project life with an initial cost of $400,000. a set of equal revenue cash flows occurred at the end of each year for 8 years, and • MARR used for calculation the Annual Worth was 8%. Find the annual revenue first and then calculate the IRR for the project = ? O 14% < IRR (i*) < 15% O 13% < IRR (i*) < 14% O 10% < IRR (i*) < 11% O 9% < IRR (i*) < 10% O 8% < IRR (i*) < 9%
- 5) The University has just invested $9,000 in a new desktop publishing system. From past experience, annual cash returns are estimated as A(t) $8000 - $4000(1 + 0.15)t- 1 S(t) $6000(1 0.3)t where A(t) stands for the net cash flow in period t and S(t) stands for the salvage value at the end of year t, and t 2 1. If the MARR is 12%, compute the annual equivalent cost in year 2The Flynn manufacturing company is undergoing a review by the board of regents for expounding their performance. Three proposals were under strict scrutiny given its investment and corresponding cash flow. If the company desires an MARR=15% for the period 5 years, which from the following proposal will be beneficial for Flynn company? End of year Proposal A Proposal B Proposal C -135000 -160000 -200000 1 24000 43000 60000 2 24000 43000 60000 24000 43000 60000 4 24000 43000 60000 24000 43000 60000 Calculate using Benefit-Cost Ratio Method. O A. Proposal A о в. Proposal B O C. Proposal C O D. None of theseThe Flynn manufacturing company is undergoing a review by the board of regents for expounding their performance. Three proposals were under strict scrutiny given its investment and corresponding cash flow. If the company desires an MARR=15% for the period 5 years, which from the following proposal will be beneficial for Flynn company? End of year Proposal A Proposal B Proposal C -135000 -160000 -200000 1 24000 43000 60000 2 24000 43000 60000 3 24000 43000 60000 24000 43000 60000 24000 43000 60000 Calculate using Benefit-Cost Ratio Method. ОА. Proposal А О В. Proposal B О С. Proposal C O D. None of these 4-
- The Flynn manufacturing company is undergoing a review by the board of regents for expounding their performance. Three proposals were under strict scrutiny given its investment and corresponding cash flow. If the company desires an MARR=15% for the period 5 years, which from the following proposal will be beneficial for Flynn company? End of year Proposal A Proposal B Proposal C -135000 -160000 -200000 1 24000 43000 60000 2 24000 43000 60000 3 24000 43000 60000 4 24000 43000 60000 5 24000 43000 60000 Calculate using Benefit-Cost Ratio Method. A. Proposal A B. Proposal B O C. ProposalC O D. None of theseUse Excel® to solve the following problem. An eight-year life project has an initial capital expenditure of $450,000, annual income of $300,000 beginning at the end of year 1, and annual operating costs of $80,000 beginning at the end of year 1. Calculate the IRR for the following cases: (a) Assume the cash flows given are in escalated dollars and the escalated dollar MARR is 10%, 20%, and 30%. (b) Assume the cash flows given are in today dollars and pairs of escalation rates are: a. Incomes are escalated at 7% and costs are escalated at 6% b. Incomes are escalated at 3% and costs are escalated at 5% c. Incomes are escalated at 4% and costs are escalated at 4% (c) Assume inflation is 49% and rework all portions of part (b) in terms of constant dollars.Illustrate the cashflow diagram and compute for the payback period for a project with the following characteristics, if the minimum attractive rate of return (MARR) is 10%? First Cost $20,000 Annual Benefits $8,000 Annual Maintenance $2,000 in year, then increasing by $500 per year Salvage Value $2,000 Useful Life 10 years
- Question 3 A project with the following costs are under consideration to determine its profitability. Using the IRR comparison, and an annual MARR of 10% compounded semiannually, determine if the project should be executed First cost $45,000 Semiannual operating cost $10,000 Semiannual income $20,000 Salvage value $20,000 Life in years 4 years Oa. IRR = 17% semiannual Ob. IRR= 18.7% semiannual O IRR = 16.9% semiannual Od. IRR 15.3% semiannualA company is considering the purchase of a fleet of % ton pickup trucks for their contracting business. The owner is trying to decide whether to purchase the trucks with diesel or gas engines. The company specifies an intermal rate of return on equipment purchases of 6% . The owner estimates the following cash flows of costs for a gas and diesel equipped truck. What is the EUAC of the Diesel Truck? Gas Diesel Purchase Purchase Year Fuel Fuel Maintain Maintain $30,000 $250 $300 $39,000 $6,750 $5,000 $1,000 $5,000 $1,500 1 $500 $6,750 $6,750 2 3 $350 $5,000 4 $400 $6,750 $2,000 $5,000 $2,500 $5,000 $3,000 $5,000 $3,500 $5,000 $4,000 | $5,000 5 6. Note: no need to find the common useful life when using EUAC.Q2) The two projects as part of oil industrial their cash flows in tables belwo: project B: r=8% cash flow (CF) project A:r=8% year cash flow (CF) -398 -242 1 120 105 2 175 105 280 115 Required: a) Find NPV for both project on base of r = 8%? b) Find the required IRR for both project and evaluate them based on this proceuder? Let the required IRR on range (10-20)%? c) Evaluate the mentioned project by using Pl during r=8%? %3D