Question
In: Economics
Use Excel to answer the following question: The capital fund for research project investment at a...
Use Excel to answer the following question:
The capital fund for research project investment at a corporation is limited to $100,000 for next year. The company uses an MARR of 15% per year. There are three independent project proposals (i.e., none, one or more can be selected) with pertinent information given in the below table.
| Project | Initial Investment ($) | Annual Net Cash Flow ($/year) | Life (years) | Salvage Value ($) |
| A | -25,000 | 6,000 | 4 | 4,000 |
| B | -30,000 | 9,000 | 4 | -1,000 |
| C | -50,000 | 15,000 | 4 | 20,000 |
(a) Formulate the mutually-exclusive alternatives (i.e., bundles)
without calculating any worth. Which of the mutually-exclusive
alternatives are feasible? Comment.
(b) Use the Excel built-in function NPV to perform a PW analysis
for selection and comment.
Solutions
Rahul Sunny answered 8 months agoRelated Solutions
Use the information in the following table to answer the question. Note the fund started with...
Use the information in the following table to answer the
question. Note the fund started with 100 Net Asset Value
at the start of 2012. 2012 2013 2014 2015 2016 2017 2018
2019
Return 7.7% 10.4% 21.9% -2.2% 24.8% -20.5% 12.8% 7.7%
Asset Value 107.67 118.83 144.83 141.67 176.83 140.50 158.50
170.67
1)Given the above hedge fund manager’s performance, which
year(s) would the manager get paid on their high watermark?
2)Calculate the rolling 3 years' average returns and identify
which...
Use the information in the following table to answer the question. Note the fund started with...
Use the information in the following table to answer the
question.
Note the fund started with 100 Net Asset Value at the start
of 2012.
2012
2013
2014
2015
2016
2017
2018
2019
Return
8.0%
4.0%
1.7%
-4.5%
9.7%
10.7%
-0.3%
-14.1%
Asset Value
108.00
112.36
114.27
109.18
119.82
132.64
132.27
113.64
Given the above hedge fund manager’s performance, which year(s)
would the manager get paid on their high water mark? (1.5
marks).
Calculate the rolling 3 years average returns...
Plot the following parabolic functions in Excel and then answer the discussion question below . Use...
Plot the following parabolic functions in Excel and then answer
the discussion question below . Use at least 8 points for each
plot: Each graph is worth 15 points and must include 8 points. 1)
y=x2-6x+8 2) y=x2+4 3) y=(-1/2)(x2) 4) What is the maximum number
and the minimum number of x-intercepts for a parabola? Why? (15
points) In order to obtain full credit, you will need to plot the
functions in Excel or using the Open Office feature and...
Use the information in the table above for the following 5 questions. A capital investment project...
Use the information in the table above for the following 5
questions.
A capital investment project is estimated to have the following
after-tax cash flows, by year:
0
1
2
3
4
-$30,000
$7,500
$12,500
$5,000
$15,000
The company utilizes a discount rate of 10% to evaluate capital
projects. You may have rounding errors in your calculations so
choose the closest answer. Assume cash flows occur
evenly over the year.
The PAYBACK for the project shown above is:
2.16
3.33
3.15...
Use the information in the table below for the following 5 questions. A capital investment project...
Use the information in the table below for the following 5
questions.
A capital investment project is estimated to have the following
after-tax cash flows, by year:
0
1
2
3
4
-$50,000
$15,000
$17,500
$17,500
$25,000
The company utilizes a discount rate of 20% to evaluate capital
projects. You may have rounding errors in your calculations so
choose the closest answer. Assume cash flows are received equally
over the year.
The NET PRESENT VALUE for the project shown above...
Conduct an analysis (you can use Excel) to answer the following question. Show an ANOVA table....
Conduct an analysis (you can use Excel) to answer the following
question. Show an ANOVA table.
A grower wishes to compare yields of four different varieties of
pumpkins for yield (tons/ac). His experiment consisted
of four replications for each variety. Is there a
significant difference between the varieties in
yield? Do a Tukey’s test. Give complete conclusions with
a properly labeled tabulated results. Data are as follows:
Variety A Variety
B Variety
C Variety D
27 29 30 32
28 28 29 29
29 29 29 31
25 27 31 32
An experiment was conducted to compare the...
Use Excel to answer the following question: Sundance Detective Agency purchased new surveillance equipment with the...
Use Excel to answer the following question:
Sundance Detective Agency purchased new surveillance equipment with
the following estimates. Note: The year index is k = 1, 2, 3, ...
to calculate the maintenance costs and extra revenues for the
corresponding years.
First cost ($)
1,050
Annual maintenance cost ($ in year k)
70 + 5k
Extra revenue ($ in year k)
200 + 50k
Salvage value ($ at the end of the useful life)
600
(a) Prepare a cash-flow (CF)...
Use the following information to answer the question below: a project with fixed costs of $240,000...
Use the following information to answer the question below:
a project with fixed costs of $240,000 and operating cash flow
of $360,000 was expected to sell 12,000 units. The final results
showed they sold about 13,200 units instead.
what is the degree of operating leverage?
what is the percentage change in quantity?
what is the percentage change in operating cash flow?
What will the OCF be at the higher (actual) quantity?
Kindly use excel and use screenshots to show formulas Fisher, Inc., has identified an investment project...
Kindly use excel and use screenshots to show formulas
Fisher, Inc., has identified an investment project with the
following cash flows. If the discount rate is 8 percent for the
first 2 years and 6% for the years after, beginning in year 3, what
is the future value of these cash flows in Year 5? What is the
future value of the cash flows in year 10? What is the present
value of the cash flows?
Year Cash Flow
1...
Excel Assignment 2 Direction: Use Microsoft Excel to answer the following three questions (Excel Instructions are...
Excel Assignment 2
Direction: Use Microsoft Excel to answer the following three
questions (Excel Instructions are provided in previous
assignment)
1. An Economist was interested in sex differences in the number of
books a person reads (see file: Number of Books). Two random
samples were taken, one of men and the other, and the number of
books read during the last month was recorded. Is there a
difference with respect to the number of books read by females and
males?...
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