QUESTION 16 Find the crossover rate with the following information. Required rate of return: 8% Year 0 1 2 3 CFS -$2000 $750 $750 $750 $750 CFL -$6,000 $2,500 $2,500 $1,800 $1,500 16.25% 12.45% O 14.49% O 15.27%
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- Module 02 Written Assiqnment Application of Future Value and Present Value.xlsx - OpenOffice Calc File Edit View Insert Format Iools Data Window Help ABC 《 的, ABC Verdana 10 В I U 三 開 % 0 □ A B G H I 1. Assume an investment of $2,000 today. Calculate the FV of the investment according to eac 6. 7 a. 6 percent compounded annually 8 9. Rate 6% 10 Nper PMT 12 11 12 PV $2,000.00 $0.00 13 FV 14 15 b. 8 percent compounded annually 16 17 Rate 8% 18 Nper 12 19 PMT 20 PV $2,000.00 21 FV 22 23 c. 10 percent compounded annually 24 25 Rate 10% 26 Nper 12 27 PMT 28 PV $2,000.00 29 FV 30 31 d. 10 percent compounded semiannually 32 Rate K Future Value Present Value 33 10% STD Sheet 1/2 PageStyle Future ValueQuestion 8 Find the value of P for which the inflows will equal the outflows. Find the effective rate first. Rate pycd 8% Inflows Year Outflows 0 -P 1 2 3 4 5 6 7 8 9 10 -2P -4P -8P -16P O $3,786 O $4,376 O $5,172 O $5,246 $24,000 $30,000 $36,000 $42,000 $48,000 $54,000NPV profiles WACC (Dollars in Millions) Plan A Plan B Project NPV Calculations: NPVA NPVB Project IRR Calculations: IRRA IRRB NPV Profiles: Discount Rates 0% 5% 10% 15% 20% 22% 25% 11.00% NPVA $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 0 -$40.00 Formulas #N/A #N/A -$11.00 $2.47 $2.47 $2.47 #N/A #N/A NPVB 1 $6.39 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 2 3 $6.39 $6.39 4 $6.39 $2.47 5 6 7 $6.39 $6.39 $6.39 $2.47 $2.47 8 9 $6.39 $6.39 $2.47 $2.47 $2.47 10 $6.39 $2.47 11 $6.39 12 $6.39 13 $6.39 $2.47 $2.47 $2.47 14 $6.39 15 $6.39 $2.47 $2.47 16 $6.39 $6.39 $2.47 17 39 $2.47
- ANSWERS: NPW= 220,148.69 NFW= 442,797.66 AW= 65,673.78 PI= 1.44 IRR i%= 31.39% ERR i%= 23.71% PAYBACK Simple= 2.5 years and Discounted= between 3&4 years B/C Conventional= 1.44 and Modified= 1.44Governorate Optional Initial Years: Values in OMR Project Investment 2022 2023 2024 2025 2026 2027 Ad Land 30000 7000 15000 14000 22000 Nil 5000 development Ad Dhahirah Ceramic products Dakhiliyah 24000 8000 5000 10000 4000 12000 10000 Al Batinah Fish 54000 6000 9000 12000 11000 10000 12000 North Processing Al Batinah Clay and pots 18000 6000 5000 7000 9000 8000 6000 South Al Buraymi Desert 5000 20000 Nil 50000 12000 22000 10000 camping Rock Garden Al Wusta 100000 20000 25000 18000 26000 22000 Nil Ash Ship Building 84000 16000 14000 12000 40000 30000 35000 Sharqiyah North Ash Turf racing 14000 15000 20000 42000 8000 7000 6000 Sharqiyah track South Dhofar Hotel chain 150000 26000 25000 20000 35000 29000 50000 Oil refinery 120000 22000 30000 50000 24000 20000 Muscat 40000 Musandam Date farming 48000 20000 25000 14000 60000 9000 8000 Required : Calculate the following investment appraisal criteria for THREE optional projects (Selection is from your own choice): 1. i. Accounting Rate of…S=26.32 E-55 t=3 standard diviation=60% r=3.1% d₁ In 3-year r=2.4% 10-year S E ( 2 ) + ( R + O²) (ox√₁) 2 x1 d₂=d₁-ox√₁ What minimum value would you assign? What isthe maximum value you would assign?
- Match the following measurements with the terms below: Question 15 options: 12345 cash conversion efficiency ratio 12345 economic ordering quantity 12345 credit terms 12345 net working capital 12345 days of working capital 1. 5.1% 2. 47.2 days 3. 1/10, n/30 4. $200,000 5. 700 units6) Year Project A Project B Difference 0 -75000 -75000 0 1 26300 24000 2300 2 29500 26900 2600 3 45300 51300 -6000 Crossover rate 14.60% Hi I need help with the following question! Thank you! Are you going to accept project A or project B? Why?id 1 :uonsenn siu i 29 o Consider the following two projects: Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Discount Project C/F Alpha C/F C/F C/F C/F C/F C/F C/F Rate -79 20 25 30 35 40 N/A N/A 12% Beta - 80 25 25 25 25 25 25 25 13% The net present value (NPV) for project alpha is closest to: A. $31 B. $25 OC. $21 D. $38 Click to select your answer. MacE esc D00 O O O 0
- 11:52 Investment Appraisal (Year 2 Column 2... 6. Discount Factor (5%) Year 0 -450,000 150,000 1.00 Year 1 0.952 Year 2 180,000 0.907 Year 3 250,000 0.864 Year 4 200,000 0.823 Year 5 200,000 0.784 What is the NPV ? £530,000 £298,595 £393,460 7. Based on NPV which project would you ассept? Net Cash F Net Cash F Net Cash F Project 1 (110,000) (105,000) Project 3 (116,000) Project 2 Year 0 ... Activity Chat Teams Assignments MoreYear 5 222826.84 8% fee=17826.15= 240652.99 20%annual return(240652.99*20%). =48130.59 Rs.288,783.58 For the above part, is the answer correct. should it not be 222,826.84 - 17,826.15 which results to 205,000.69Find the rate i. j12 equivalent to j1 = 10.08% ii. equivalent to j4 = 12% iii. j4 equivalent to joo = 9% iv. per month equivalent to 5% per half-year