Determine the average rate of return for a project that is estimated to yield total income of $270,400 over 4 years, costs $615,000, and has a $61,000 residual value. %
Q: Determine the average rate of return for a project that is estimated to yield total income of…
A: 1. Formula for average rate of return is = Average annual income or profit/ Initial investment2. To…
Q: A project is estimated to cost 110,000, last 8 years and have a 15,000 salvage value. The annual…
A: A rate of return is the net gain or loss of an investment over a specific period represented as a…
Q: A company's current net operating income is $16,800 and its average operating assets are $80,000.…
A: The residual income of the new project is determined by taking the difference between the estimated…
Q: Average Rate of Return Determine the average rate of return for a project that is estimated to yield…
A: The average rate of return is an approach of comparison the profit of various selections over the…
Q: Determine the annual worth (AW) of a project, where it requires capital investment of BD 40,000, has…
A: Annual Worth = AW is an equal annual series of dollar amounts, over a stated period (N), equivalent…
Q: Average Rate of Return The following data are accumulated by Watershed Inc. in evaluating two…
A:
Q: flows of $21,200 for nine years costs $120,000 today. What is the NPV for the project if the…
A: Net present value or NPV is excess of present value of cash inflows over present value of cash…
Q: What is the interest earned on a project that requires an initial investment of $ 10,000 and…
A: Initial investment (PV) = $ 10,000 Future value (FV) = $ 20,114 Period (n) = 5 Years
Q: For projects A and B determine the payback period(PBP) and the Account rate of return (ARR). The…
A: Payback period and accounting rate of return are tools to evaluate potential investment projects of…
Q: A project requires an initial investment of $170,000 and has a project profitability index of 0.350.…
A: Profitability Ratio The Profitability Index (PI) measures the ratio between the present value of…
Q: You are evaluating projects 1 and 2. The projects have the following yearly operating profit.…
A: Definition: Net present value method: Net present value method is the method which is used to…
Q: what is its IRR? Use 2 financial calculator to determine your answer
A: Information Provided: Initial capital cost = $750,000 Tax operating cash flow per year = $225,000…
Q: Find the net present value (NPV) and profitability index (PI) of a project that costs $1,500 and…
A: The net present value for the project is calculated below:
Q: You are evaluating projects 1 and 2. The projects have the following yearly operating profit.…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: A project that provides annual cash flows of $72,000 for 6 years costs $263,000 today. If the…
A: Initial Cost = 263,000 Annual Cash Flow = 72,000 N = 6 years Required Return = 14%
Q: The annual worth equivalent of a long-life project which has estimated revenues of $50,000 now,…
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: 1.) A project is estimated to cost P100,000, lasts 8 years and have a P10,000 salvage value. The…
A: “Since you have asked multiple questions, we will solve the one question for you. If you want any…
Q: An investment has an initial cost of $410,000 and will generate the net income amounts shown below.…
A: Average Accounting Rate of Return (ARR) = Average Annual Profit / Average Investment
Q: What is the project's NPV?
A: NPV is an abbreviation for Net Present Value. For example, NPV helps us to know the present value of…
Q: A project requires an initial investment of $40 million. It generates cash flows of $25 million in…
A: Calculation of Profitability Index:The profitability index is 1.16.Excel Spreadsheet:
Q: A fixed capital investment of ₱10,000,000 is required for a proposed manufacturing plant and an…
A: Given Information: Fixed capital investment = ₱10,000,000 Estimated working capital = ₱2,000,000…
Q: Average Rate of Return The following data are accumulated by Watershed Inc. in evaluating two…
A: It is also known with the name of the accounting rate of return. We can evaluate by dividing net…
Q: Determine the average rate of return for a project that is estimated to yield total income of…
A: Average rate of return = ? Initial investment = $608,000 Average investment = 1/2 (cost -…
Q: You are given the following forecasted data about a project: Project life = 3 years Required…
A: NPV means PV of net benefit which will arises from the project in the coming years. It is equal to…
Q: Determine the average rate of return for a project that is estimated to yield total income of…
A:
Q: A project with an initial cost of $29,900 is expected to provide cash flows of $9,750, $11,000,…
A: The PI index is the profitability index of the project. The shows the profitability of the project…
Q: Assume a project has estimated fixed costs of $61,200, variable costs per unit of $84.29, a selling…
A: Excel Spreadsheet:
Q: average rate of return for a project
A: Average annual income Total income/Number of years Total income $386,400 Number of years 4…
Q: An investment has an initial cost of $3.2 million. This investment will be depreciated by $900,000 a…
A: The average accounting return or average rate of return is an accounting metric which helps in…
Q: Average Rate of Return Determine the average rate of return for a project that is estimated to yield…
A: Average annual income = $665,820/6 Average annual income = $110,970 Average investment = ($731,600…
Q: A project is estimated to cost P120T, last 8 years & have a salvage value of P20T. The annual gross…
A: Net cost is nothing but the opposite of NPV where cost of an investment exceeds the present value of…
Q: Average rate of return Determine the average rate of return for a project that is estimated to yield…
A: The average rate of return is calculated as estimated average annual income divided by average…
Q: A project with an initial outlay of $400 has an economic life of 5 years. The project after-tax…
A: The internal rate of return refers to a matrix used for determining the probability of the…
Q: Average Rate of Return Determine the average rate of return for a project that is estimated to yield…
A: It is also known by the name of the accounting rate of return. We can evaluate by dividing average…
Q: A company requires an initial investment of $75,000 with a residual value of $12,500 after five…
A: Answer initial investment = $75,000 residual value = $12,500 annual returns = $20,000 Discounting…
Q: What is the net present value of this project?
A: Net Present Value: It is the difference between the discounted cash inflows and cash outflow. The…
Q: Average Rate of Return Determine the average rate of return for a project that is estimated to…
A: Average Rate of Return is the average rate of profit earned over the investment made. Example: If…
Q: &takeAssignmentSessionLocator=D&inpro... to ... Determine the average rate of return for a project…
A: Average rate of return on project means how much net income is generated by investing a particular…
Q: A project has estimated annual cash flows of $95,000 for four years and is estimated to cost…
A: Net present value = Present value of cash inflows - Initial investment To calculate present value,…
Q: You are considering a five-year project with initial investment of $40,446.46. The required return…
A: The net present value is the technique of evaluation of the performance of long-term capital…
Q: Berwick's Bike shops initial capital cost (not including working capital) is 750,000, expected after…
A: Concept used: Salvage value will be added to the cash flow of year 5. An increase in working capital…
Q: 3.) A project is estimated to cost $350,000, last 9 years, and have a salvage value of $90,000. The…
A: First we need to calculate present value(PV) of all annual cash inflows by using this equation PV…
Q: XYZ is considering a project that would last for 3 years and have a cost of capital of 18.20…
A: Year 0 1 2 3 Revenue $ - $ 12,500.00 $ 10,400.00 $…
Step by step
Solved in 2 steps
- in 1. Calculate the Annual rate of return. Solving for Rates - Excel HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Calibri, BIU - A- Alignment Number Conditional Format as Cll Formatting Table Styles 国 Paste Cipboard H. 1. D. E. C. 3. What annual rate of return is earned on a $5,000 investment when it grows to $10,750 in six years? (Do not round intermediate calculations and round your final answer to 2 decimal places. Present value Future value Number of periods 0000 2410,750 Complete the following analysis. Do not hard code values in your calculations. 28 of 40 ere to search %23Consider the following information about a project: PROJECT YEAR O YEAR 1 YEAR 2 YEAR 3 YEAR 4 COSTS $160,000 $43,000 $50,000 $50,000 $64,000 BENEFITS $0 $400,000 $400, 000 $500,000 $500,000 a) Calculate the NPV assuming 10% discount rate b) Determine in which year will be the payback c) Calculate (ROI)? Provide the detail answer for your calculation.Compute the IRR, NPV, Pi, and payback period for the following two projects. Assume the required return is 10%. Year Project A Project B 0 $-200 $-150 1 $200 $50 2 $800 $100 3 $-800 $150 Please show inputs from the BAII Plus Financial calculator of how to get these answers
- Calculate the profitability index for the below projects and indicate your order of choices. Project Present Value Investment A $145,000 $95,000 $135,000 $80,000 $175,000 $110,000 Select one: a. B, A and C b. A, C and B c. B, C and A d. C, B and A B сA firm evaluates all of its projects by applying the IRR rule. If the required return is 14 percent, should the firm accept the following project? Input area: Required Return Year 0 Year 1 Year 2 Year 3 (Use cells A6 to B10 from the given information to complete this question.) Output area: 14% ($41,000) $20,000 $23,000 $14,000 IRR1. In Excel, solve the following problem and create a spider graph: d. A new online patient diagnostics system for surgeons will cost $280,000 to insttan. cost $12,000 annually to maintain and will have an expected life of 5 years. The added revenue is estimated to be $75.000 per vear, and the Marr is 8% per year. i. Determine the PW of the project ". Vary the following parameters, in increments of 10% by +/- 40%. 1. First cost 2. Revenue 3. Expected life
- Below are four cases that you will have to solve using Excel spreadsheets. 1st case The company COMERCIAL SA has two investment alternatives that present the following information: PROJECT A B It is requested Initial investment. $25,000 $22,000 Cash flows year 1 1. Determine the internal rate of return. 2. Determine the present value. $7,000 $12,000 The discount rate for the project will be 10% and the MARR will be 20%. 3. Determine the recovery period. 4. Define which is the most viable project. Year 2 cash flows $15,000 $8,000 Year 3 cash flows $18,000 $12,000You work for an outdoor play structure manufacturing company and are trying to decide between the following two projects: (Click on the following icon in order to copy its contents into a spreadsheet.) Project Playhouse Fort Year-End Cash Flows ($ thousands) 1 2 18 IRR 33.8% 13.2% 52 You can undertake only one project. If your cost of capital is 7%, use the incremental IRR rule to make the correct decision. 0 -25 -75 The incremental IRR is%. (Round to two decimal places.) 20 39 Save OLHelp 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.
- NPV Calculate the net present value (NPV) for a 30-year project with an initial investment of $45,000 and a cash inflow of $8,000 per year. Assume that the firm has an opportunity cost of 18%. Comment on the acceptability of the project. The project's net present value is $ (Round to the nearest cent.) Text ia Librai Calculat Resource Enter your answer in the answer box and then click Check Answer, Check Answer ic Study es Clear All part remaining unication Tools 10:11 4/19/ P Type here to search insert f10Crane Company is considering three long-term capital investment proposals. Each investment has a useful life of 5 years. Relevant data on each project are as follows. Project Bono Project Edge Project Clayton Capital investment $164,000 $180,500 $204,000 Annual net income: Year 1 14,420 18,540 27,810 2 14,420 17,510 23,690 14,420 16,480 21,630 4 14,420 12,360 13,390 14,420 9,270 12,360 Total $72,100 $74,160 $98,880 Depreciation is computed by the straight-line method with no salvage value. The company's cost of capital is 15%. (Assume that cash flows occur evenly throughout the year.) Click here to view the factor table. Compute the cash payback period for each project. (Round answers to 2 decimal places, e.g. 10.50.) Project Bono years Project Edge years Project Clayton yearscompute for ROI, NPV and Profitability Index I. Create a structural organization of your team. Choose any of the exampled structu assign a designation to cach member. State the qualifications of each of every team member. II. Select the most profitable project, using required rate of return of 15% - Project A Initial Investment = 50,000 Cash fiow for the next 3 years = 25,000 Project B Initial Investment = 100,000 Cash flow for the next 4 years = 31,250 - Project C Initial Investment = 150,000 Cash flow for the next 5 years = 35,000
