Please answe ASAP 11. An elective project is currently under review. The first alternative requires an initial investmentof $60,000 for equipment. The annual revenues and expenses are expected to be $36,000 and$20,000 each year, respectively, over the 6-year project period. The salvage value of theequipment at the end of the project period is projected to be $14,000. The B/C of thisalalternative is 1.34.DepThe second alternative requires an initial investment of $116,000 for equipment. The annualrevenues and expenses are expected to be $38,000 and $10,000 each year, respectively, overthe 6-year project period. The salvage value of the equipment at the end of the project period isprojected to be $22,000Find the preferred alternative using B/C analysis, assuming a MARR of 10%. Justify yourconclusion.

A cost-benefit analysis is a systematic process that businesses use to determine which decisions to…

11. An elective project is currently under review. The first alternative requires an initial investment of $60,000 for equipment. The annual revenues and expenses are expected to be $36,000 and $20,000 each year, respectively, over the 6-year project period. The salvage value of the equipment at the end of the project period is projected to be $14,000. The B/C of this alternative is 1.34. The second alternative requires an initial investment of $116,000 for equipment. The annual revenues and expenses are expected to be $38,000 and $10,000 each year, respectively, over the 6-year project period. The salvage value of the equipment at the end of the project period is projected to be $22,000 Find the preferred alternative using B/C analysis, assuming a MARR of 10%. Justify your

11. An elective project is currently under review. The first alternative requires an initial investment of $60,000 for equipment. The annual revenues and expenses are expected to be $36,000 and $20,000 each year, respectively, over the 6-year project period. The salvage value of the equipment at the end of the project period is projected to be $14,000. The B/C of this alternative is 1.34. The second alternative requires an initial investment of $116,000 for equipment. The annual revenues and expenses are expected to be $38,000 and $10,000 each year, respectively, over the 6-year project period. The salvage value of the equipment at the end of the project period is projected to be $22,000 Find the preferred alternative using B/C analysis, assuming a MARR of 10%. Justify your

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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a potential project is currently under review an investment of $87000 would be necessary for equipment. the annual revenues and expenses are expected to be $40000 and 19000 each year respectively over the 6-year project period. the salvage value of the equipment at the end of the project period is projected to be $17,000. Assume a MARR of 9%. find the B-C(to the nearest cent).
An elective project is currently under review. It requires an initial investment of $116,000 for equipment. The profit is expected to be $28,000 each year, over the 6-year project period. The salvage value of the equipment at the end of the project period is projected to be $22,000. Assume a MARR of 10%. Find an IRR for this project.
A project with a life of 5 has an initial fixed asset investment of $42,000, an initial NWC investment of $4,000, and an annual OCF of -$64,000. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required return is 13 percent, what is the project's equivalent annual cost, or EAC? Multiple Choice O O O о о $-53,786.35 $-76,461.21 $-80,284.27 $-64,992.03 $-72,638.15
A five-year project has an initial fixed asset investment of $345,000. an initial NWC investment of $25,000, and an annual OCF of -$41,000. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required return is 11percent, what is this project's equivalent annual cost, or EAC? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Equivalent annual cost
A project with 10-year life requires an initial investment of $30000. The annual cost of the project is $6300 while the annual revenue is $17500. There will be an additional investment of $8000 in year 5. Assume that the salvage value at the end of usage life is $7500. At which MARR value, the project is economically viable? If necessary, you can choose more than one options, O a. 50% O b. 40% O c. 30% Od. 20%
A 4-year project requires an initial investment in fixed assets of $40,000, an investment in inventory of $3,000, and an annual operating cash flows of -$60,000. The fixed assets are fully depreciated over the life of the project and have no salvage value. If the required return is 12 percent, what is the project's equivalent annual cost, or EAC? $-21,647 $-22,334 $-63,529 $-73,529 None of the above.
A project requires an initial investment of 45,000$, has a salvage value of 11,000$ after six years, incurs annual expenses of 9,000$, and provides an annual revenue of 16,000$. Using MARR of 10%, determine the AW of this project detailed answer without using excel
A project with a life of 11 has an initial fixed asset investment of $42,000, an initial NWC investment of $4,000, and an annual OCF of -$64,000. The fixed asset is fully depreciated over the life of the project and has no salvage value.If the required return is 19 percent, what is the project's equivalent annual cost, or EAC?
A five-year project has an initial fixed asset investment of $300,000, an initial NWC investment of $28,000, and an annual OCF of – $27,000. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required return is 11%, what is this project's equivalent annual cost, or EAC? (Negative answer should be indicated by a minus sign. Do not round your intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) Equivalent annual cost %24
A five - year project has an initial fixed asset investment of $335,000, an initial NWC investment of $35,000, and an annual OCF of -$34,000. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required return is 10 percent, what is this project's equivalent annual cost, or EAC? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)
2) Your Team wish to evaluate four independent projects that all have a 10-year life at MARR = 15% per year. Preliminary estimates for first cost, annual net income, and Salvage Value have been made. First cost, $ Annual net income, $/year Salvage value, $ A B C D -1,200 -2,000 -5,000 -7,000 200 400 1100 1300 5 ___6 8 7 (a) Accept or reject each project using a present worth analysis. On your spreadsheet, include the logical IF function to make the accept/ reject decision. (b) The preliminary estimates have changed for projects A and B as shown below. Use the same spreadsheet to reevaluate them. First cost, $ Annual net income, $/year Salvage value, $ A - 1,000 300 8 B -2,200 440 0
A five year project has an initial fixed asset investment of $15,960, an initial NWC investment of $1,520, and an annual OCF of $24,320. The fixed asset is fully depreciated over the life of the project and has no salvage value. required: if the required return is 11 percent, what is the projects equivalent annual cost, or EAC?

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