Question
In: Finance
A Six Sigma project needs initial investment of $20,000 at July 2003, which includes training fee,...
- A Six Sigma project needs initial investment of $20,000 at July 2003, which includes training fee, consulting fee and other expenses. The costs and benefits of this project is listed in the following table:
|
Time |
July 1 2003 |
Oct 1 2003 |
Jan 1 2004 |
Apr 1 2004 |
July 1 2004 |
Oct. 1 2004 |
Jan 1 2005 |
Apr 1 2005 |
July 1 2005 |
|
Cost |
$20k |
4.5k |
1.5k |
1.5k |
0 |
0 |
0 |
0 |
0 |
|
Benefit |
0 |
3.5k |
5.5k |
4.5k |
4.5k |
4.5k |
4.5k |
4.5k |
4.5k |
If the capital cost within company is i=10% per year.
- By using NPV, is this project worthwhile?
- What is the project’s IRR?
- What is this project’s payback period (in month)?
Show all work
Solutions
jeff jeffy answered 1 year agoRelated Solutions
Which of the following statements regarding "Six Sigma" is TRUE? A. The Six Sigma program...
Which of the following statements regarding "Six Sigma" is TRUE?
A. The Six Sigma program was developed by Toyota in the 1970s.
B. Six Sigma means that about 94 percent of a firm's output is free of defects.
C. The Six Sigma program is for manufacturing firms and is not applicable to services.
D. Six Sigma certification is granted by the International Standards Organization (ISO).
E. The term has two distinct meanings - one is...
caclulate the NPV for the project that has an initial investment of $20,000 with expected after-tax...
caclulate the NPV for the project that has an initial investment
of $20,000 with expected after-tax operating cash flows of $125,000
per year for each of the next 3 years. However, in preparation for
its termination at the end of year 3, an additional investment of
$350,000 must be made at the end of Year 2. What is the NPV? the
cost of capital is 12%. Please show all calculations in
excel!
Calculate the rate of return for an investment with the following characteristics. Initial cost $20,000 Project...
Calculate the rate of return for an investment with the
following characteristics.
Initial cost
$20,000
Project life
10 years
Annual receipts
$6000
Annual disbursements
$3000
Consider the following two investment projects: Project A: it has an initial cost of 20,000 euros...
Consider the following two investment projects:
Project A: it has an initial cost of 20,000 euros and requires
additional investments of 5,000 euros at the end of the first year
and 15,000 euros at the end of the second. This project is two
years old and generates 20,000 euros per year in income.
Project B: it has an initial cost of 20,000 euros and requires
an additional investment of 10,000 euros at the end of the first
year. This project...
A project requires an initial investment of $350,000 and will return $140,000 each year for six...
A project requires an initial investment of $350,000 and will
return $140,000 each year for six years.
Factors: Present Value of $1
Factors: Present Value of an Annuity
(r = 10%)
(r = 10%)
Year 0
1.0000
Year 1
0.9091
Year 1
0.9091
Year 2
0.8264
Year 2
1.7355
Year 3
0.7513
Year 3
2.4869
Year 4
0.6830
Year 4
3.1699
Year 5
0.6209
Year 5
3.7908
Year 6
0.5645
Year 6
4.3553
If taxes are ignored and the required...
A project requires an initial investment of $350,000 and will return $140,000 each year for six...
A project requires an initial investment of $350,000 and will
return $140,000 each year for six years.
Factors: Present Value of $1
Factors: Present Value of an Annuity
(r = 10%)
(r = 10%)
Year 0
1.0000
Year 1
0.9091
Year 1
0.9091
Year 2
0.8264
Year 2
1.7355
Year 3
0.7513
Year 3
2.4869
Year 4
0.6830
Year 4
3.1699
Year 5
0.6209
Year 5
3.7908
Year 6
0.5645
Year 6
4.3553
If taxes are ignored and the required...
Project A: This project requires an initial investment of $20,000,000 in equipment which will cost an...
Project A: This project requires an initial investment of
$20,000,000 in equipment which will cost an additional $3,000,000
to install. The firm will use the attached MACRS depreciation
schedule to expense this equipment. Once the equipment is
installed, the company will need to increase raw goods inventory by
$5,000,000, but it will also see an increase in accounts payable
for $1,500,000. With this investment, the project will last 6 years
at which time the market value for the equipment will...
You are evaluating a capital project with a Net Investment of $400,000, which includes an increase...
You are evaluating a capital project with a Net Investment of
$400,000, which includes an increase in net working capital of
$16,000. The project has a life of 12 years with an expected
salvage value of $3,000. The project will be depreciated via
simplified straight-line depreciation. Revenues are expected to
increase by $90,000 per year and operating expenses by $8,000 per
year. The firm's marginal tax rate is 40 percent and the cost of
capital for this project is 15%....
You are evaluating a capital project with a Net Investment of $800,000, which includes an increase...
You are evaluating a capital project with a Net Investment of
$800,000, which includes an increase in net working capital of
$8,000. The project has a life of 20 years with an expected salvage
value of $100,000. The project will be depreciated via simplified
straight-line depreciation. Revenues are expected to increase by
$120,000 per year and operating expenses by $14,000 per year. The
firm's marginal tax rate is 40 percent and the cost of capital for
this project is 12%....
You are evaluating a capital project with a Net Investment of $400,000, which includes an increase...
You are evaluating a capital project with a Net Investment of
$400,000, which includes an increase in net working capital of
$16,000. The project has a life of 12 years with an expected
salvage value of $3,000. The project will be depreciated via
simplified straight-line depreciation. Revenues are expected to
increase by $90,000 per year and operating expenses by $8,000 per
year. The firm's marginal tax rate is 40 percent and the cost of
capital for this project is 15%....
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- A pension fund manager is considering three mutual funds. The first is a stock fund, the...
- The project manager develops a process improvement plan to encourage continuous process improvement during the life...
- The company could issue 300,000 additional shares of $1 par value common stock for $7.50 per...
- Define circadian rhythms and how the body's"bilogical clock" works and what happens when it doesn't Distinguish...
- Can you think of any negative social consequences that nanobots would have on society? Nanobots are...
- how do you foster an organization culture that characterized by open communication high performance and an...
- Question Three (Chapter Three): Review the slides here (Links to an external site.)Links to an external...
ADVERTISEMENT