QSO 420 3-2

Table 1: The Planned Value of Work Done Schedule Jan Feb March Project A Project B Project C Project D 60,000 100,000 80,000 120,000 100,000 80,000 80,000 120,000 120,000 120,000 70,000 100,000 April 120,000 140,000 90,000 120,000 Мay 200,000 140,000 100,000 150,000 Based on the data obtained from each project, you have found out the value of work done on the 31st of March, which is shown in Table 2 below. Table 2: The Actual Value of Work Done and Direct Cost Incurred as of the 31st of March Project Actual Value of Work Done 300,000 250,000 250,000 280,000 Direct Cost Incurred A 220,000 180,000 200,000 240,000 Each project is supposed to contribute 10% profit and 8% orerhead to the compoany. You are requested to present to the company the turnorer as of the 31st of march. Prepare your answenr by answering the following que'stions. a) Calculate the planned ralue of work done, the total planned orerhead and the total profit contribution from all the. projects as of the 31st of March. b)…

A project has been defined that consist of 13 activities for which the estimated cost and duration have been defined (TABLE). Afterfour-andahalf monthfthe activates A, B, D. E, G are completed and Fis one half complete nd (H) is three -fourth complete and (C) is half complete The incurred cost to date is 1720009 Apply your knowledge of camed value to calculate the status of this project in terms of the schedule and the budger? Activity 中 Cost 100000 25600 500000 4S000 150000 29000 180000 84000 840000 700000 470000 Jan Feb Mar May Jun H. 45000

Apps ( MyWay : 01 - Introduction A this second one What percentage of the entire development effort should be devoted tO the PIP process? * O Less than 10% O Less than 5% O Between 20 and 30% O Between 10 and 20% Defining the necessary activities required to organize the initiation team m while they are working to define the scope of the project is the focus of which of the following activities? O Establishing the project initiation plan O Establishing management procedures O Establishing the project management environment and project workbook O Establishing the relationship with the customer A controlled process of initiating, planning, executing, and closing down a project best defines: O Project development O Systems management O Systems development O Project management

Table 1: The Planned Value of Work Done Schedule Jan Feb March Project A Project B Project C Project D 60,000 100,000 80,000 120,000 100,000 80,000 80,000 120,000 120,000 120,000 70,000 April 120,000 140,000 90,000 120,000 May 200,000 140,000 100,000 150,000 100,000 Based on the data obtained from each project, you have found out the value of work done on the 31st of March, which is shown in Table 2 below. Table 2: The Actual Value of Work Done and Direct Cost Incurred as of the 31st of March Actual Value of Work Done 300,000 250,000 250,000 280,000 Project Direct Cost Incurred 220,000 180,000 200,000 240,000 A Each project is supposed to contribute 10% profit and 8% overhead to the company. You are requested to present to the company the turnorer as of the 31st of march. Prepare your answenr by answering the following que'stions. la) Calculate the planned ralue of work done, the total planned orerhead and the total profit contribution from all the. projects as of the 31st of March. b)…

Question Help Use the NPV method to determine whether Smith Products should invest in the following projects: Project A: Costs $270,000 and offers eight annual net cash inflows of $57,000. Smith Products requires an annual return of 14% on investments of this nature. Project B: Costs $390,000 and offers 10 annual net cash inflows of $74,000. Smith Products demands an annual return of 12% on investments of this nature. (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) Read the requirements. Requirement 1. What is the NPV of each project? Assume neither project has a residual value. Round to two decimal places. (Enter any factor amounts to three decimal places, X.XXX. Use parentheses or a minus sign for a negative net present value.) Caclulate the NPV (net present value) of each project. Begin by calculating the NPV of Project A. Project A: Net Cash Annuity PV Factor Present Years Inflow (i=14%, n=8) Value 1 - 8…

Table 1: The Planned Value of Work Done Schedule March 120,000 120,000 70,000 100,000 Jan Feb Project A Project B Project C Project D 60,000 100,000 80,000 120,000 100,000 80,000 80,000 120,000 Аpril 120,000 140,000 90,000 120,000 May 200,000 140,000 100,000 150,000 Based on the data obtained from each project, you have found out the value of work done on the 31st of March, which is shown in Table 2 below. Table 2: The Actual Value of Work Done and Direct Cost Incurred as of the 31st of March Project Actual Value of Work Done 300,000 250,000 250,000 280,000 Direct Cost Incurred 220,000 180,000 200,000 240,000 A Each project is supposed to contribute 10% profit and 8% orerhead to the compoany. You are requested to present to the company the turnorer as of the 31st of march. Prepare your answer by answering the following questions. a) Calculate the planned ralue of work done, the total planned orerhead and the total profit contribution from all the projects as of the 31st of march. b)…

Table 1: The Planned Value of Work Done Schedule March 120,000 120,000 70,000 100,000 Jan Feb Project A Project B Project C Project D 60,000 100,000 80,000 120,000 100,000 80,000 80,000 120,000 Аpril 120,000 140,000 90,000 120,000 May 200,000 140,000 100,000 150,000 Based on the data obtained from each project, you have found out the value of work done on the 31st of March, which is shown in Table 2 below. Table 2: The Actual Value of Work Done and Direct Cost Incurred as of the 31st of March Project Direct Cost Incurred Actual Value of Work Done 300,000 250,000 250,000 280,000 A 220,000 180,000 200,000 240,000 Each project is supposed to contribute 10% profit and 8% overhead to the compoany. You are requested to present to the company the turnorer as of the 31st of march. Prepare your answer by answering the following questions. a) Calculate the planned ralue of work done, the total planned orerhead and the total profit contribution from all the projects as of the 31st of march. b)…

Question #1a) What is a “transfer price?”b) List and describe 3 main reasons for using transfer prices.Question #2Consider the following information about a potential project:Investment requiredExpected annual project revenueExpected annual project expensesRequired rate of returnCurrent division return on investment$3,000,000$6,000,000$5,550,00011%18%a) Calculate the project’s return on investment.b) Based solely on ROI, is this project in the firm’s best interests? Why or why not?c) Is this project in the division manager’s best interests? Why or why not?d) Perform DuPont Analysis on this project.e) What is the project’s residual income?Question #3List and describe five traits that can differentiate a customer that is relatively inexpensive to service from a customer that is relatively expensive to service.Question #4List and describe five actions a firm can take if a customer appears…

Question1: 1. Determine the Payback Period and write a conclusion for the two projects E and R based on the information provided in the table below: Year Cash Flow (E) Cash Flow (R) 0 -3700 -2900 1 400 500 2 500 600 3 700 700 4 800 900 5 1000 1100 6 1200 1300 Question2: 1. Discuss the critical importance of work schedule in project management.2. Discuss the contribution of cost estimation in the completion of successful project.3. A firm is planning a project which consists of the following ten jobs and precedence relations are identified with their node numbers: Jobs (i-j) 1-2 1-3 2-3 2-4 2-5 3-5 4-7 5-6 6-7 7-8 Durations (days) 9 5 12 7 8 11 10 3 4 6 a. Draw an arrow diagram representing the project.b. Determine the critical pathc. What is the duration of the project?   Question3: A company is planning to purchase a new machine to expand the range of its products.…

ne NPV, with rankings Botany Bay, Inc., a maker of casual clothing, is considering four projects shown in the following table, Because of past financial difficulties, ptions the company has a high cost of capital at 14.4%. a. Calculate the NPV of each project, using a cost of capital of 14.4%. b. Rank acceptable projects by NPV. c. Calculate the IRR of each project and use it to determine the highest cost of capital at which all of the projects would be acceptable. a. Calculate the NPV of each project, using a cost of capital of 14.4%. The NPV of project A is $ (Round to the nearest cent.) Is project A acceptable? (Select the best answer below.) O A. No O B. Yes The NPV of project B is $ (Round to the nearest cent.) la nreinnt Danontabl-2/0lest the hant an nr hale Click to select your answer(s). P Type here to search

ata table K Fabulous Fabricators needs to decide how to allocate space in its prod year. It is considering the following contracts: E a. What are the profitability indexes of the projed Data Table b. What should Fabulous Fabricators do? a. What are the profitability indexes of the projects? The profitability index for contract A is *** Contract A B C ck on the following icon in order to copy its contents into a spreadsheet.) Use of Facility 100% 60% 40% NPV $1.98 million $1.02 million $1.53 million (Round to two decimal places

Table 1: Project Data Project NPV (M$) Risk (%) Capital (M$) A 19 4 14 B 22 S 10 C 24 6 12 D 27 7 15 E 21 5 13 The budget constraint may be stated as: *A+c+2%p <= 0 14% +10x12x15xD -13%E43 14% -10%E-12x15xD -13%E43 %B5%E

Required information [The following information applies to the questions displayed below.] The following capital expenditure projects have been proposed for management's consideration at Scott Inc. for the upcoming budget year: Use Table 6-4 and Table 6-5. (Use appropriate factor(s) from the tables provided. Round the PV factors to 4 decimals.) Project Year(s) B D $ (25,000) $(50,000) 16,000 16,000 16,000 16,000 16,000 $ (50,000) 5,000 10,000 15,000 20,000 25,000 Initial investment $(25,000) 5,000 5,000 5,000 5,000 5,000 5,000 $ 1,081 $(100,000) 30,000 30,000 Amount of net cash return 1 2 3. 10,000 10,000 10,000 6,000 15,000 15,000 15,000 15,000 2,942 4 5 Per year 6-10 NPV (14% discount rate) 2$ $ Present value ratio 1.04 Required: a. Calculate the net present value of projects indicated by a minus sign.) and D, using as the cost of capital for Scott Inc. (Negative amounts should be Project Net Present Value B D

U3 Company is considering three long-term capital investment proposals. Each investment has a useful life of 5 years. Relevant data on each project are as follows. Capital investment Annual net income: Total Year 1 (a) 2 Project Bono 3 4 Project Edge 5 Project Bono $160,000 14,000 Project Clayton 14,000 14,000 Click here to view the factor table. 14,000 14,000 $70,000 Project Edge Project Clayton $175,000 $200,000 18,000 17,000 16,000 12,000 9,000 $72,000 Depreciation is computed by the straight-line method with no salvage value. The company's cost of capital is 15%. (Assume that cash flows occur evenly throughout the year.) years 27,000 years 23,000 Compute the cash payback period for each project. (Round answers to 2 decimal places, e.g. 10.50.) years 21,000 13,000 12,000 $96,000

arning X + tps://ng.cengage.com/static/nb/ui/evo/index.html?deploymentid=5933142288413647560152243&eISBN=97813379 CENGAGE | MINDTAP 11: Assignment - The Basics of Capital Budgeting Blue Llama Mining Company is evaluating a proposed capital budgeting project (project Sigma) that will require an initial investment of $800,000. Blue Llama Mining Company has been basing capital budgeting decisions on a project's NPV; however, its new CFO wants to start using the IRR method for capital budgeting decisions. The CFO says that the IRR is a better method because returns in percentage form are easier to understand and compare to required returns. Blue Llama Mining Company's WACC is 8%, and project Sigma has the same risk as the firm's average project. The project is expected to generate the following net cash flows: Year Year 1 Year 2 Year 3 Year 4 Cash Flow $350,000 $475,000 $425,000 $500,000 Which of the following is the correct calculation of project Sigma's IRR? 34.38% 38.20% 42.02% O 36.29%

Compute for the benefit ratio of the following projects. Project cost Gross income Operating cost Life of project Interest rate O a. 1.20 O b. 1.70 O c. 1.07 O d. 1.02 5,000,000 2,000,000 1,000,000 20 years 10%

How many IRRs could be estimated for each project below: Project A has ________ (1, 2.3. or 4) IRR(s). Project B has __________ (1,2,3, or 4) IRR(s). Project C has  ____________ (1,2,3, or 4) IRR(s). Project D has___________   (1,2,3, or 4) IRR(s).

Project 1: NPV 13,941 IRR: 17.66%   Project 2; NPV 31,261 IRR: 28.45%   The questions is : Is it correct to use the IRR rule for project appraisal in this case? Why or why not?

Required information [The following information applies to the questions displayed below.] The following capital expenditure projects have been proposed for management's consideration at Scott Inc. for the upcoming budget year: Use Table 6-4 and Table 6-5. (Use appropriate factor(s) from the tables provided. Round the PV factors to 4 decimals.) Project Year (s) D E $ (25,000) 5,000 5,000 5,000 5,000 5,000 5,000 $ 1,081 $ (25,000) $ (50,000) $ (50,000) 5,000 10,000 15,000 20,000 25,000 Initial investment $(100,000) 30,000 30,000 Amount of net cash return 16,000 16,000 16,000 16,000 16,000 10,000 15,000 10,000 10,000 6,000 15,000 15,000 5 Per year 6-10 15,000 NPV (14% discount rate) $ 2,942 Present value ratio 1.04 b. Calculate the present value ratio for projects B, C, D, and E. (Round your answers to 2 decimal places.) Project Present Value Ratio B D E

Use the information for the question(s) below. Project A - 10,000 Project B Time 0 - 10,000 Time 1 5,000 4,000 Time 2 4,000 3,000 Time 3 3,000 10,000 If WiseGuy Inc. uses IRR rule to choose projects, which of the projects (Project A or Project B) will rank highest? OA. Project A OB. Project B OC. Project A and Project B have the same ranking OD. Cannot calculate a payback period without a discount rate.

The following information is available on two mutually exclusive projects.  Project                   Year 0         Year 1          Year 2           Year 3         Year 4 A                           -$700           $200            $300            $400           $500 B                           -$700           $600            $300            $200           $100   If the required rate of return is 10%, which project should be selected using the internal rate of return (IRR) method? Group of answer choices A B

Earned Value Analysis of the project supported by cost Performance Index and Schedule Performance Index readings. Comment on the progress of each activity and overall health of the project. Activity 1- Percentage Completion 80% BCWS Rs. 30,000 ACWP Rs. 25,000. Activity 2- Percentage Completion 40% BCWS Rs. 60,000 ACWP Rs. 80,000. Activity 3- Percentage Completion 100% BCWS Rs. 80,000 ACWP Rs. 78,000. Cumulative BCWS Rs. 170,000 ACWP Rs. 183,000.

EXERCISE 3: CASH INFLOWS AND CASH OUTFLOWS With the following capital budgetng elements, identify the cash outflows and cash inflows that you would use to judge the attractiveness of a project by using the time- value-of money yardstıcks capital assets ($1.5 million), working capital in year 1 ($500,000) and year 2 ($200,000), salaries ($140,000), working capital loan ($190,000). residual value at the end of the 11th year ($1 million), profit for the years 1 to 10 ($300,000), mortgage ($1.1 million), non-cash expense ($50,000), revenue ($300,000), and sunk costs ($100,000). The project's lifespan is 10 years and the cost of capital is 8%.

2. NET firm is trying to decide between five mutually exclusive one- year projects. Project 1 Project 2 Project 3 Project 4 Project 5 Return Probability of return occurring 16 20 -16 36 48 -8 16 24 -40 0 100 1.0 1.0 0.25 0.50 0.25 0.25 0.50 0.25 0.10 0.60 0.30 Remember to regularly save your work Sheet 8 of 10 Module Code: ACF15084 Please work out the likely outcome for each project and discuss whether you can make informed decision according to this.

You are evaluating the following two mutually exclusive projects:           Project           Year 0             Year 1           Year 2             A               -$100                 $95             $140              B                 -$50                 $50             $120 Both have 15% cost of capital.  Using NPV profiles for Projects A and B, determine which project would be chosen under each of IRR rule and NPV rule. (Hint: Draw the NPV profiles.) Group of answer choices A under IRR rule, and B under NPV rule B under IRR rule, and A under NPV rule A under both IRR and NPV rules Cannot be determined. B under both IRR and NPV rules

Which of the following statement is true? * IRR and discount rate all have the same meaning.... If BCR is less than zero, an investment to a conservation project is worthwhile.... Both of them are true

Part 3: Capital Budgeting and Project EvaluationCase Study: Assume that the company, where you are working as a team in Financial Department,is considering a potential project with a new product. It will require the company to buy a newequipment that will generate the same revenue for the company each year. The table below showsthe initial and annual costs for each option.3.1. Capital Budgeting Decision Making: Perform capital budgeting technique based on EquivalentAnnual Cost (EAC) to advise the Company Management which option should be chosen if therelevant discount rate is 9%?Costs Option A Option BInitial Investment 1,400,000 1,500,000Year 1                    35,000      25,000Year 2                     35,000     25,000Year 3                     35,000     25,000Year 4                      35,000    25,000Year 5                                     25,000