Question

In: Accounting

Consider the following investment opportunities. Period A B C D 0 -12,500 -11,000 12,500 -13,000 1...

Consider the following investment opportunities.

Period	A	B	C	D
0	-12,500	-11,000	12,500	-13,000
1	5,400	-3,000	-7,000	5,500
2	14,400	21,000	-2,000	5,500
3	7,200	13,000	4,000	8,500

a) Compute the present worth of each investment, assuming a MARR of 15%

b) Compute the future worth of each investment, assuming a MARR of 15%

c) Which project or projects are acceptable?

Expert Solution

a) Investment A

Period	0	1	2	3
Cashflow	-12500	5400	14400	7200
DF	1	0.87	0.756	0.658
Present Value	-12500	4698	10886	4738

Net Present Worth = 8322

Investment B

Period	0	1	2	3
Cashflow	-11000	-3000	21000	13000
DF	1	0.87	0.756	0.658
PV	-11000	-2610	15876	8554

Net Present Worth = 10820

Investment C

Period	0	1	2	3
CF	12500	-7000	-2000	4000
DF	1	0.87	0.756	0.658
PV	12500	-6090	-1512	2632

Net present worth = 7530

Investment D

Period	0	1	2	3
CF	-13000	5500	5500	8500
DF	1	0.87	0.756	0.658
PV	-13000	4785	4158	5593

Net present worth = 1536

b) Investment A

Period	0	1	2	3
Cashflow	-12500	5400	14400	7200
Compounding	1.15^3	1.15^2	1.15^1	1
Future Value	-19011	7142	16560	7200

Net Future Worth = 11891

Investment B

Period	0	1	2	3
Cashflow	-11000	-3000	21000	13000
Compounding	1.15^3	1.15^2	1.15^1	1
FV	-16730	-3968	31500	13000

Net Future Worth = 23802

Investment C

Period	0	1	2	3
CF	12500	-7000	-2000	4000
Compounding	1.15^3	1.15^2	1.15	1
FV	19011	-9258	-2300	4000

Net future worth = 11453

Investment D

Period	0	1	2	3
CF	-13000	5500	5500	8500
Compounding	1.15^3	1.15^2	1.15	1
FV	-19771	7274	6325	8500

Net future worth = 2328

c) All 4 projects can be acceptable because all projects are having positive Present worth and Future worth.

ekkarill92 answered 2 years ago

Year Project(A) Project (B) 0 -$30,000 -$30,000 1 13,000 5,000 2 11,000 5,000 3 9,000 5,000...

Year Project(A) Project (B) 0 -$30,000 -$30,000 1 13,000 5,000 2 11,000 5,000 3 9,000 5,000 4 7,000 5,000 5 0 5,000 6 7 8 9 10 0 0 0 0 0 5,000 5,000 5,000 5,000 5,000 The required rate of return is 10%. 3). What is the payback period for each of the projects? Which project should be accepted if the payback period method is applied? Assume that the target payback period is 4 years. Explain why. (4). What...

Consider the following reaction at 309 K. 1 A + 1 B → C + D...

Consider the following reaction at 309 K. 1 A + 1 B → C + D where rate = rate=k[A]2[B]. An experiment was performed for a certain number of seconds where [A]o = 1.07 M and [B]o = 0.000167 M. A plot of ln[B] vs time had a slope of -9.63. What will the rate of this reaction be if a new experiment is preformed when [A] = [B] = 0.212 M?

Consider the following propositional formula: (((A ^ B) -> C) ^ ((A ^ C) -> D))...

Consider the following propositional formula: (((A ^ B) -> C) ^ ((A ^ C) -> D)) -> ((A ^ B) -> D) Perform the following tasks for this formula: Convert this formula into CNF form and write a numbered list of all clauses obtained from this formula.

a b c d f 0 0 0 0 0 0 0 0 1 0 0...

a b c d f 0 0 0 0 0 0 0 0 1 0 0 0 1 0 0 0 0 1 1 0 0 1 0 0 1 0 1 0 1 1 0 1 1 0 1 0 1 1 1 1 1 0 0 0 0 1 0 0 1 1 1 0 1 0 1 1 0 1 1 1 1 1 0 0 0 1 1 0 1 1 1 1 1 0 1...

Consider the cross: A/a; b/b; C/c; D/d; E/e x A/a; B/b; c/c; D/d; e/e a) what...

Consider the cross: A/a; b/b; C/c; D/d; E/e x A/a; B/b; c/c; D/d; e/e a) what proportion of the progeny will phenotypically resemble the first parent? b) what proportion of the progeny will genotypically resemble neither parent?

MIPS a) Consider the C statement: a = (b + d) + (b - c) +...

MIPS a) Consider the C statement: a = (b + d) + (b - c) + (c + d) Which of the following assembly instructions can be used to replicate all or part of this statement in MIPS, without changing or reducing the equation. Assume variables a, b, c, and d are assigned to registers $s0, $s1, $s2 and $s3 respectively. 1. sub $t0, $s2, $s3 2. sub $t0, $s0, $s3 3. sub $t1, $s1, $s2 4. sub $t2, $s1,...

Consider this set A = { a, b, c, d } and the following relations R6...

Consider this set A = { a, b, c, d } and the following relations R6 = { ( a, a ), ( a, b), ( b, b), ( c, d ) } R7 = { ( a, a), ( b, b ), ( b, c ), ( c, c ), ( c, d), (d, d) } R8 = { (a, b), (a, d), ( b, a), ( d, a) , ( b, d) , (d, b) } R9 =...

Find the discounted payback period. YEAR PROJECT A PROJECT B PROJECT C PROJECT D 0 (10,000)...

Find the discounted payback period. YEAR PROJECT A PROJECT B PROJECT C PROJECT D 0 (10,000) (15,000) (20,000) (30,000) 1 5,000 5,000 10,000 0 2 5000 5,000 10,000 0 3 20,000 5,000 4,000 100,000 4 1,000 10,000 2,000 120,000 5 - 5,000 - 60,000 answer : A(3 years) B(4years) C(4 years) D(3 years) Pls show me the working on how to get the discounted payback period. Pls do not show the working in excel, pls do it manually and attached...

2.10-2. Consider the system described by x(k + 1) = c 0 1 0 3 d...

2.10-2. Consider the system described by x(k + 1) = c 0 1 0 3 d x(k) + c 1 1 d u(k) y(k) = [-2 1]x(k) (a) Find the transfer function Y(z)/U(z). (b) Using any similarity transformation, find a different state model for this system. (c) Find the transfer function of the system from the transformed state equations. (d) Verify that A given and Aw derived in part (b) satisfy the first three properties of similarity transformations. The fourth...

What is the payback period for the following investment given that (a) i=0% and (b) i=10%?...

What is the payback period for the following investment given that (a) i=0% and (b) i=10%? Site Initial Cost Annual Cost Annual Income Maximum Life Salvage Value X 1,000,000 100,000 300,000 10 yrs 500,000 By hand please.