Calculate the NPV of a project under consideration with the following information: project life = 5 years; project cost = $1,500,000; unit sales = 25,000; unit price = $200; unit variable cost = $170; fixed costs = $250,000; tax rate = 34%; rate of return = 12%.
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- A project has an initial cost of 40,000, expected net cash inflows of 9,000 per year for 7 years, and a cost of capital of 11%. What is the projects NPV? (Hint: Begin by constructing a time line.)Project S has a cost of $10,000 and is expected to produce benefits (cash flows) of $3,000 per year for 5 years. Project L costs $25,000 and is expected to produce cash flows of $7,400 per year for 5 years. Calculate the two projects’ NPVs, IRRs, MIRRs, and PIs, assuming a cost of capital of 12%. Which project would be selected, assuming they are mutually exclusive, using each ranking method? Which should actually be selected?Determine the B/C ratio for the following project.First Cost = P100, 000Project life, years = 5Salvage value = P10, 000Annual benefits = P60, 000Annual O and M = P22, 000Interest rate= 15%
- Determine the average rate of return for a project that is estimated to yield total income of $347,360 over 4 years, costs $608,000, and has a $60,000 residual value.Determine the average rate of return for a project that is estimated to yield total income of $600,000 over 4 years, costs $840,000, and has an $80,000 residual value. Round your answer to one decimal place.Find the net present value (NPV) and profitability index (PI) of a project that costs $1,500 and returns $800 in year one and $850 in year two. Assume the project’s cost of capital is 8 percent.
- Perform a financial analysis of a project assuming that the projected 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 percentage, discount rate, round the discount factors to two decimal places. Create a table of financial template on the paper to calculate and clearly display the NPV, ROI and year in which payback occurs with the help of a graph. In addition, write a paragraph explaining whether you would recommend investing in this project, based on your financial analysis.1. Assuming monetary benefits of a construction project at $50,000 per year during year 1, 2, 3 and 5 (not year 4), one-time costs (initial investment) of $15,000, recurring costs of $35,000 per year (every year), a discount rate of 10 per cent, and a 5-year time horizon, calculate the net present value (NPV) of an information system's costs and benefits. Calculate the overall return on investment (ROI) of the project. During which year does break-even occur?. Use the NPV template provided (modify to suit your answer) and clearly display the NPV, ROI, and year in which payback occurs. Write a paragraph explaining whether you would recommend investing in this project based on your financial analysis. Explain your answer referring to the NPV, ROI and payback for this project. Discount Rate (10%) Year 0 - 1.0000 Year 1 - .9091 Year 2 - .8264 Year 3 - .7513 Year 4 - .6830 Year 5 - .6209Find the equivalent present worth of the following 6-year project using the following data; purchase and installation cost, $100,000; maintenance per year, $10,000; energy saving per year, $45,000; salvage value, $20,000. Assume that the minimum attractive rate of return is 12%/year.
- Determine the average rate of return for a project that is estimated to yield total income of $332,000 over four years, has a cost of $604,200, and has a $59,800 residual value. Round to the nearest whole number.The table below lists four mutually exclusive projects, Which project should be selected based on the equivalent annual net cost? Assume a 10% discount rate? Project A Project B Project C Project D Total Operating Cost (PV) Project D Project C Project A Project B Project life (years) 44000 37500 36000 32000 978 6 5A permanent (life = infinity) project has the following estimates: First cost = -20 M, Annual cost = - 4 M, and Annual revenue = 8 M. At MARR = 10%, the annual worth of the project equals: