Projects A and B are mutually exclusive. The minimum attractive rate of return (MARR) is 12%. Using rate of return analysis, which project should be selected? If the image fails to load here, go to https://www.dropbox.com/s/ld6wctqieu8jgwp/ROR.jpg >> Year 0 A B - $750 - $1,150 B-A - $400 123 $200 $300 $100 $200 $350 $150 $200 $400 $200 4 $600 $700 $100 ROR 17.68% 16.44% 13.69% Project A Project B Both Project A and B Select none of the project. Insufficient information to make a decision.

Required information A process for producing the mosquito repellant Deet has an initial investment of $205,000 with annual costs of $53,000. Income is expected to be $90,000 per year. What is the payback period at /= 0% per year? At/ 12% per year? (Note: Round your answers to the nearest integer.) The payback period at / 0% is determined to be years. The payback period at i= 12% is determined to be years.

5) The University has just invested $9,000 in a new desktop publishing system. From past experience, annual cash returns are estimated as A(t) $8000 - $4000(1 + 0.15)t- 1 S(t) $6000(1 0.3)t where A(t) stands for the net cash flow in period t and S(t) stands for the salvage value at the end of year t, and t 2 1. If the MARR is 12%, compute the annual equivalent cost in year 2

Given four proposals for funding a new project with a 100M limit on capital funding and the MARR is established at 12% per year. Project First Cost Estimated Annual Savings Project Life, Years 12M 5M 25M 7.3M Y 45M 12.1M 6. 60M 9M Use the exact internal rate of return method to determine which of the four independent projects should be funded. Write the value of the not acceptable project accordingly/in sequence (W/XY/Z). ANSWER for ALTERNATIVE 1: Blank 1 ANSWER for ALTERNATIVE 2: Blank 2 Blank 1 Add your answer Blank 2 Add your answer co

Five alternatives are being evaluated by the incremental rate of return method. Initial investment Overall ROR (TL) Alternative Incremental ROR (%) (%) B E -23.000 9.6 12.3 8.2 23.3 31.1 -37.000 12.2 5.2 23.5 22.4 -42.000 17.4 6.5 27.3 D -50.000 14.4 9.8 E -75.000 25.7 If the projects are mutually exclusive and the MARR is 13% per year, what is the best alternative? O a. B O b.C O c.D Od.E e. A

The rate of return for the following cash flow is closest to: If the file failed to load, click https://www.dropbox.com/s/nuxqnt15nak2kdc/ROR-FE1.jpg If you decided to use Excel to solve this problem, be aware that you will need to solve in by hand in Exam 2. Year 0 Cash Flow - $15,000 1 0 2 $2,500 3 $5,000 4 $7,500 5 $10,000 10% 12% 14% 16%

Suppose Omni Consumer Products's CFO is evaluating a project with the following cash inflows. She does not know the project's initial cost; however, she does know that the project's regular payback period is 2.5 years. Year Cash Flow Year 1 $350,000 Year 2 $400,000 Year 3 $475,000 Year 4 $475,00 If the project's weighted average cost of capital (WACC) is 9%, what is its NPV? $373,562 $336,206 $317,528 $429,596

Given four proposals for funding a new project with a 100M limit on capital funding and the MARR is established at 12% per year. Project       First Cost          Estimated Annual Savings       Project Life, Years W                   12M                               5M                                       3 X                     25M                              7.3M                                    4 Y                      45M                             12.1M                                   6 Z                       60M                              9M                                       8 Use the exact internal rate of return method to determine which of the four independent projects should be funded. Write the value of the acceptable project accordingly/in sequence (W/X/Y/Z). ANSWER for ALTERNATIVE 1: Blank 1 ANSWER for ALTERNATIVE 2: Blank 2

Determine the IRR for this project

A project has an investment of $150,000 in year 0 and an additional investment of $20,000 at the end of year Project starts producing net cash inflows of $50,000 end of years years 2-7 (years 2 to years 7? What is the internal rate of return (IRR) of this Project? A 12.00% 13.77% 14.51% 15.00% 21.13%