Initial cost Annual benefit Salvage value Life O Rave O BBQ Brewery Brewery BBQ $50,000 10000 25000 6 years Rave $100,000 $12,000 15000 5000 35000 -5000
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- Your cousin Vance tells you that you can invest $15,000 in his business, and he will pay you back $25,000 in 2 years' time. What is the return on this investment? Multiple Choice 15.59% 30.00% 66.67% 29.10% 32.72%Julie wants to borrow $10,250 from you. She has offered to pay you back $12,250 in a year. If the cost of capital of this investment opportunity is 12%, what is its NPV? Question content area bottom Part 1 The NPV of the investment is $enter your response here. (Round to the nearest cent.)1.Calculate the NPV of the following project using a discount rate of 12 %. Yr 0 = -$500; Yearr1 = -$50; Yr2 = $50; Yearr3 = $200; Yearr4 = $400; Yearr5 = $400a.$118.75b. $208.04c. $ 61.22d.$ 618.752.You are buying your first house for $220,000, and are paying $30,000 as a down payment. You have arranged to finance the remaining $190,000 30-year mortgage with a 7% nominal interest rate and monthly payments. What are the equal monthly payments you must make?a. $1,976b. $1,110c. $1,264d. $1,5133.How much would $1,599 due in 9 years be worth today if the discount rate were 10.5%?a. $3,955.20b. $3,770.35c. $3,927.43d. $4,000.004. Apple company sales last year were $48,000, and its total assets were $25,500. What was its total assets turnover ratio?a. 1.10b. 1.99c. 1.21d. 1.885. you purchase 100 shares at a price of $RM45 per share. One year later, the share are selling for $47 per share. In addition, a dividend of $4 per share is paid at the end of the period. Determine the total return…
- You would like to invest in the following Project: Year Cash Flow 0 $-55,000 1 30,000 2 37,000 Your boss insists that only projects that return $1.10 in today's dollars for every $1 invested can be accepted. The discount rate is 10%. Based on this criteria, should you accept the Project? Why?Which alternative should be selected using the incremental rate of return analysis, if MARR =11.0%? Do- nothing A B C D First Cost 0 $10,000 $4000 $10,000 $7000 Annual benefit 0 1,806 828 1,880 1,067 Life 10 Years ROR 12.5% 16.0% 13.5% 8.5% a. B, because its ROR is the highest b. Something other than C, because C costs the most initially c. C, because the C-B increment has a ROR of 11.78% and the A-B increment has a ROR of 10.5% d. C because C has the highest annual benefits Book Het Print ferences If you insulate your office for $13,000, you will save $1,300 a year in heating expenses. These savings will last forever. a. and b. What is the NPV of the investment when the cost of capital is 8%? What if it is 10%? Cost of Capital a. 8% b. 10% 1320 NPV
- Gary wants to save $555,000 in 8 ears, he currently has $225,000 in an investment. Due to financial constraints, he i lime lett 0:43:03 to this investment. What interest rate must he earn to achieve his goal? Select one: a. 16.24% b. 13.77% c. 11.95% d. 19.79% e. 10.55%How much would you invest today in order to receive $30,000 in each of the following? (for further instructions on present value in Excel, see the Suggested Resources in the textbook: https://cnx.org/contents/kg0cimBs@14.13:bDQCmuJO@6/Suggested-Resources) a. 10 years at 9% b. 8 years at 12% c. 14 years at 15% d. 19 years at 18%You have been promised that if you invest in Asset X you would receive an amount of $1 500 at the end of each year forever. If your required rate of return is 18%, would you purchase this asset if it costs $10 000? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). 10pt A BIUS Paragraph Arial O WORDS POWERED BY TIN A WhatsApp Image.jpeg E MBA661 Gendere.pdf Show all P Type here to search 25°C AQI 85 A@G O 4) 3:18 PM 9/7/2021 tSonicMaster F12 pause break prt sc sysrq delete home pgdn pgup 3 4. 6. backspace num Ik scr Ik E R. Y U [ home pgup H. K enter 4. C B shift& end 立 S'
- Connor Corporation is considering two projects (see below). For your analysis, ass rate of return of 10%. Based on your analysis, which is the best choice? Initial Investment Cash Flow Year 1 PV NPV Profitability Index IRR Project A -465,000 510,000 463,636.364 ($1,363.64) $1.00 ANSWER 10% Project B -700,000 You can change the i 850,000 772,727.273x E My Home CengageNOWv2 |Online teachir x+ now.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inpro. ta o 伯 Determine the average rate of return for a project that is estimated to yield total income of $250,000 over 4 years, costs $480,000, and has a $20,000 residual value. Next Previous Submit Test for GradingAny suggestions? Thanks for the help! Given the data for three different alternatives in the table below, determine the best alternative using the incremental rate of return (∆RoR) analysis. MARR =9%. A B C First cost $15,000 $25,000 $20,000 O &M Cost/ year 1,600 400 900 Benefit/year 8,000 13,000 9,000 Salvage value 3,000 6,000 4,600 Life in years 4 4 4 1. The better alternative between the first increment is ________________. 2. The better alternative between the second increment is ___________________.