Question

In: Economics

Investment: $75,000 Annual costs: $5,000 Annual revenues: $50,000 Project life: 10 years MARR: 10% Salvage: $10,000...

Investment: $75,000

Annual costs: $5,000

Annual revenues: $50,000

Project life: 10 years

MARR: 10%

Salvage: $10,000

What is the NPV of this project?

If the NPV of an alternative project was $200,000, which project would you pursue?

If the NPV of this project was $100,000, what would be the AW of this project?

If the NPV of this project was $100,000, what would be the FW of this project?

what is the IRR of this project? ​​​​​​​

Based on the IRR value you found above, is this a feasible project? ​​​​​​​

Solutions

Expert Solution

Q) Ans:-

Step1)

Step2)

Step3)

Step4)

Rahul Sunny answered 1 year ago
Next > < Previous

Related Solutions

Treatment A costs $50,000 and extends life by 10 years. Treatment B costs $75,000 and extends...
Treatment A costs $50,000 and extends life by 10 years. Treatment B costs $75,000 and extends life by 15 years. What is the incremental cost-effectiveness ratio for Treatment B? What additional information would you need to determine if Treatment B is worth the additional cost?
An asset costs $10,000 and has a depreciable life of 10 years and a salvage value...
An asset costs $10,000 and has a depreciable life of 10 years and a salvage value of $3,000. Determine the book (asset) value at the end of the 9th year using each of the following methods of depreciation (a) double-declining-balance method (b) textbook-declining-balance method (Matheson formula), and (c) sum-of-years’ digits method.
Cost $75,000; Salvage value: $10,000; Useful life: 10 Calculate annual depreciation on this machi... Cost $80,000;...
Cost $75,000; Salvage value: $10,000; Useful life: 10 Calculate annual depreciation on this machi... Cost $80,000; Salvage value: $10,000; Useful life: 10 Calculate annual depreciation on this machinery using doublr-declining balance method. Be careful not to exceed the salvage value. If the salvage value is zero, switch to straightline in the year when straight-line yields higher depreciation. (use the remaining valye as the starting point when you change)
An investment project costs $10,000 and has annual cash flows of $2,850 for six years.   ...
An investment project costs $10,000 and has annual cash flows of $2,850 for six years.    a. What is the discounted payback period if the discount rate is zero percent? (Enter 0 if the project never pays back. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the discounted payback period if the discount rate is 5 percent? (Enter 0 if the project never pays back. Do not round intermediate calculations...
An investment project costs $10,000 and has annual cash flows of $2,850 for six years.   ...
An investment project costs $10,000 and has annual cash flows of $2,850 for six years.    a. What is the discounted payback period if the discount rate is 0 percent? (Enter 0 if the project never pays back on a discounted payback basis. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the discounted payback period if the discount rate is 5 percent? (Enter 0 if the project never pays back...
An investment project costs $10,000 and has annual cash flows of $2,930 for six years.   ...
An investment project costs $10,000 and has annual cash flows of $2,930 for six years.    What is the discounted payback period if the discount rate is zero percent? What is the discounted payback period if the discount rate is 5 percent? What is the discounted payback period if the discount rate is 19 percent?
An investment project costs $10,000 and has annual cash flows of $2,830 for six years.   ...
An investment project costs $10,000 and has annual cash flows of $2,830 for six years.    What is the discounted payback period if the discount rate is zero percent? (Enter 0 if the project never pays back. Round your answer to 2 decimal places, e.g., 32.16.)      Discounted payback period years    What is the discounted payback period if the discount rate is 4 percent? (Enter 0 if the project never pays back. Round your answer to 2 decimal places,...
A project has annual cash flows of $5,000 for the next 10 years and then $5,000...
A project has annual cash flows of $5,000 for the next 10 years and then $5,000 each year for the following 10 years. The IRR of this 20-year project is 13.58%. If the firm's WACC is 10%, what is the project's NPV? Do not round intermediate calculations. Round your answer to the nearest cent. $   = Project A requires an initial outlay at t = 0 of $1,000, and its cash flows are the same in Years 1 through 10....
A project has annual cash flows of $5,000 for the next 10 years and then $5,000...
A project has annual cash flows of $5,000 for the next 10 years and then $5,000 each year for the following 10 years. The IRR of this 20-year project is 13.63%. If the firm's WACC is 12%, what is the project's NPV? Do not round intermediate calculations. Round your answer to the nearest cent. $_________
An investment project costs $10,000 and has annual cash flows of $2,890 for six years. What...
An investment project costs $10,000 and has annual cash flows of $2,890 for six years. What is the discounted payback period if the discount rate is 0 percent? (Enter 0 if the project never pays back on a discounted payback basis. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Discounted payback period years What is the discounted payback period if the discount rate is 4 percent? (Enter 0 if the project never pays...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT