2. The company is considering a project involving the purchase of new equipment. Change the data area of your worksheet to match the following: Use Exhibit 148-1 and Exhibit 148-2. (Use appropriate factor(s) from the tables provided.) 1. Chapter 14: Applying Excel 3. Data Example E Cost of equipment needed 6 Working capital needed Overhaul of equipment in four years Salvage value of the equipment in five yoars 9 Annual revenoes and costs: 4. 320,000 50,000 20,000 %24 8. 25,000 10 Sales revenues %24 376.000 11 Cost of goods sold %24 230,000 60,000 10 % 12 Out-of-pocket operating costs 13 Discount rate a. What is the net present value of the project? (Negative amount should be indicated by a minus sign. Round your present value factor to 3 decimals and round all other intermediate calculations to nearest whole dollar.)

2. The company is considering a project involving the purchase of new equipment. Change the data area of your worksheet to match the following: Use Exhibit 148-1 and Exhibit 148-2. (Use appropriate factor(s) from the tables provided.) 1. Chapter 14: Applying Excel 3. Data Example E Cost of equipment needed 6 Working capital needed Overhaul of equipment in four years Salvage value of the equipment in five yoars 9 Annual revenoes and costs: 4. 320,000 50,000 20,000 %24 8. 25,000 10 Sales revenues %24 376.000 11 Cost of goods sold %24 230,000 60,000 10 % 12 Out-of-pocket operating costs 13 Discount rate a. What is the net present value of the project? (Negative amount should be indicated by a minus sign. Round your present value factor to 3 decimals and round all other intermediate calculations to nearest whole dollar.)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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need to solve the question in handwriting Q4:.: A company is planned to install new automated plastic molding press. Four different presses are available as follows: Press 1 Press 2 Press 3 Press 4 Capital Investment $24,000 $30,000 $49,000 $52,000 Useful Life (year) 5 5 5 5 Annual Expenses Power (S) Labor ($) Maintenance ($) Tax & Insurance ($) 2,720 2,720 26,400 24,000 1,600 480 1,800 608 4,800 16,800 2,600 992 4,800 14.800 2,000 1,040 Assume that each press has the same output capacity (120,000 units per year) and all units can be sold (the selling price is $0.375 per unit. Additional capital invested is expected to earn at least 10%. Which press should be chosen?
Help please, 2. Perform a financial analysis for a project using the format provided in Figure 4-5 in your textbook (attached business_case_financials template). Assume that the project costs and benefits for this project are spread over four years as follows: Estimated costs are $200,000 in Year 1 and $30,000 each year in Years 2, 3, and 4. Estimated benefits are $0 in Year 1 and $100,000 each year in Years 2, 3, and 4. Use a 9 percent discount rate, and round the discount factors to two decimal places. Using the attached business case financials template, calculate and clearly display the NPV, ROI, and year in which payback occurs. In addition, write a paragraph explaining whether you would recommend investing in this project, based on your financial analysis.Business case financial spreadsheet for Task 2 and paragraphexplaining your recommendations for investing or not in the project.
The Dammon Corp. has the following investment opportunities: Machine A Machine B Machine C ($10,000 cost) ($22,500 cost) ($35,500 cost) Inflows Inflows Inflows year 1 $6,000 year 1 $12,000 year 1 $-0- year 2 year 3 3,000 year 3 3,000 year 2 7,500 1,500 year 3 1,500 year 4 20,000 year 2 30, 000 5,000 year 4 -0- year 4 Under the payback method and assuming these machines are mutually exclusive, which machine(s) would Dammon Corp. choose? Multiple Choice Machine C Machine B Machine A
launching new software with in 5 months at a cost of $ 5000 can be categorized under a. Scope b. Objective c. Project goal
The Dammon Corp. has the following investment opportunities: Machine A Machine B Machine C ($10,000 cost) ($22,500 cost) ($35,500 cost) Inflows Inflows Inflows year 1 $ 6,000 year 1 $ 12,000 year 1 $ -0- year 2 3,000 year 2 7,500 year 2 30,000 year 3 3,000 year 3 1,500 year 3 5,000 year 4 -0- year 4 1,500 year 4 20,000 Under the payback method and assuming these machines are mutually exclusive, which machine(s) would Dammon Corp. choose?
ne NPV, with rankings Botany Bay, Inc., a maker of casual clothing, is considering four projects shown in the following table, Because of past financial difficulties, ptions the company has a high cost of capital at 14.4%. a. Calculate the NPV of each project, using a cost of capital of 14.4%. b. Rank acceptable projects by NPV. c. Calculate the IRR of each project and use it to determine the highest cost of capital at which all of the projects would be acceptable. a. Calculate the NPV of each project, using a cost of capital of 14.4%. The NPV of project A is $ (Round to the nearest cent.) Is project A acceptable? (Select the best answer below.) O A. No O B. Yes The NPV of project B is $ (Round to the nearest cent.) la nreinnt Danontabl-2/0lest the hant an nr hale Click to select your answer(s). P Type here to search
Two alternative means of providing engineering drafting services are under consideration. Handy-Cam R-tistry $200,000 $120/hr $250/hr $20,000 $250,000 $115/hr Purchase Price Operating Cost $250/hr $15,000 Revenue Market value (end of useful life) Useful life 6 years б уears It is anticipated that the chosen alternative wilI be used to generate revenue 8 hrs/day, 250 days per year. The company uses a MARR = 12% for all investments. 12% Interest Table ,
3. As supervisor of a facilities engineering department, you consider mobile cranes to be critical equipment. The purchase of a new, medium-sized truck-mounted crane is being evaluated. The economic estimates for the two best alternatives are shown in the following table. MARR is at 15% per year. You can use the assumption of repeatability in this case. Alternative B A Capital investment $272.000 $346.000 Annual expenses Useful life (years) | Salvage value 28.800 19,300 6. 25,000 40.000 Show that the same selection is made for the following methods: b. AWC method
CengageNOWv2| Online teachin X N2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=D&inpro... Differential Analysis Involving Opportunity Costs On July 1, Coastal Distribution Company is considering leasing a building and buying the necessary equipment to operate a public w Alternatively, the company could use the funds to invest in $149,100 of 6% U.S. Treasury bonds that mature in 16 years. The bond at face value. The following data have been assembled: Cost of store equipment $149,100 Life of store equipment 16 years Estimated residual value of store equipment $18,600 Yearly costs to operate the warehouse, excluding depreciation of equipment $55,900 Yearly expected revenues-years 1-8 75,600 Yearly expected revenues-years 9-16 70,100 Required: 1. Prepare a differential analysis as of July 1 presenting the proposed operation of the warehouse for the 16 years (Alternative 1) a investing in U.S. Treasury bonds (Alternative 2). If an amount is…
Q2: A project manager has a generator construction project that needs to be completed in 1 year and the entire financial plan of this project is $200,000. An evaluation meeting occurred at the beginning of the seventh month. The results of the meeting are that $120,000 have been spent till now and the actual percentage of completion is 40%. However, the schedule indicates that 50% of the work must be finished. Please answer the following questions: 1- How efficiently are we using our time? 2- Will we be ahead or behind schedule? 3- How efficiently are we using our cost? 4- Will we be under or over budget?
1) A manufacturing plant manager has purchased a new bologna slicing machine for $24,500. The new machine is expected to produce an extra $8,000 of revenue and have an annual operating expense of $3,000. If the useful life is expected at 6 years and i = 7% per year, what is the PW? Select one: a. $35000 b. $23835 c. $ 25000 d. $50000
Two alternative means of providing engineering drafting services are under consideration. Handy-Cam $250,000 $115/hr $250/hr $15,000 R-tistry $200,000 $120/hr $250/hr $20,000 Purchase Price Operating Cost Revenue Market value (end of useful life) Useful life б years б years It is anticipated that the chosen alternative will be used to generate revenue 8 hrs/day, 250 days per year. The company uses a MARR = 12% for all investments.

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