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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- 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?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.)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%
- 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…s 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 NPVWhich 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 benefit
- 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%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'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%
- 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 GradingYou are offered $80,000 today or $400,000 in 10 years. Assuming that you can earn 16 percent on your money, which should you choose? Question content area bottom Part 1 If you are offered $400,000 in 10 years and you can earn 16 percent on your money, what is the present value of $400,000? $enter your response here (Round to the nearest cent.)