1. Tom International LLC has developed pessimistic, most likely, and optimis benefit data are given in the table below. What is the expected NPW for Data Pessimistic Most Likely Optimistic First Cost, $ 1,000 Benefits / Year, $ 450 Life, Years A. B. C. D. $1,420 $1,813 $1,217 $1,580 1,500 250 6 8 800 500 10
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- I want you to provide me the Cash Flow diagram of the problem. Only cash flow diagram, the solution is already there. Thanks in advance! The annual estimated cash flow is $140,000. The salvage value will be 12% of the initial price after 5 years. The discount rate (r) is 18% Let us assume the initial price of the doughnut machine be X. PV of cash inflows=PV of cash outflows$140,000×PVAF4,18%+.12X×PVF5,18%=X$140,000×2.69006180465+.12X×0.43710921621=X$376,608.652651=X-0.05245310594$376,608.652651=0.94754689406XX=$397,456.479475 The maximum purchase price of the doughnut machine is $397,456.48.Q1. Calculate EOQ and plot a graph with the following information. Annual Usage= 1600 units Holding Cost $8 unit/yr Ordering Cost = $100 unit/yr > Price of per Unit= $50 Number of Units 1600 800 400 200 100 80 50 Number of Order 1 2 4 8 16 20 323. Mr. Decision is torn between two independent projects A and B. The data below each project are given and the MEAS under each project are also given. Take MARR = 12% for all projects. A. Perform the proper evaluation of all the projects available. B. Recommend the project(s) that can be selected from the list so you can help Mr. Decision to decide. C. Explain the method(s) of evaluation you used including the assumption(s) made. PARAMETERS MEA 1 МЕA 2 MEA 3 МEA 4 Investment Cost 1,500,000 1,000,000 2,000,000 2,500,000 Annual Service Benefit 200,000 200,000 150,000 115,000 Annual Insurance Benefit 300,000 150,000 200,000 Annual Maintenance and 120,000 100,000 500,000 200,000 Operational Costs Annual Revenues 90,000 100,000 110,000 90,000 Market Value 100,000 90,000 200,000 Useful Life, years 10 8 5 4 МEA 5 МEA 6 200,000 10,000 16,000 PARAMETERS MEA 7 МEA 8 Investment Cost Annual Service Benefit 100,000 10,000 30,000 300,000 15,000 500,000 11,000 10,000 Annual Insurance Benefit Annual…
- 13.12 You work for Bellevue Window Products. While performing an analysis for a new window prod- uct, you found a report from last year that pro- vided the following information regarding the manufacture of a similar product: annual produc- tion rate T 40,000 units; selling price = $70 per unit; fixed production cost = $240,000 per year; variable production cost = $1,700,000 per year; variable selling expenses = $96,000 per year. As a first-cut, you decide to use this information to estimate (a) the breakeven production rate per year, (b) the company's profit last year, and (c) the annual production rate that would generate a profit of $1,000,000 per year. What are your estimates?Mr. Decision is torn between two independent projects A and B. The data below each project are given and the MEAs under each project are also given. Take MARR = 12% for all projects. A. Perform the proper evaluation of all the projects available.B. Recommend the project(s) that can be selected from the list so you can help Mr. Decision to decide.C. Explain the method(s) of evaluation you used including the assumption(s) made.Compute the Pl statistic for Project Z if the appropriate cost of capital is 7 percent. Project Z Time: Cash flow: 0 1 2 3 4 5 -$ 1,400 $ 430 $ 560 $ 730 $ 380 $ 180 Should the project be accepted or rejected? Note: Do not round intermediate calculations and round your final answer to 2 decimal places. PI Should the project be accepted or rejected?
- Problem 1 - Revenue and Cost Calculations A manufacturing plant operation has fixed costs of $2,500,000 per year, and its output capacity is 0 - 100,000 electrical appliances per year. When the plant is operating at 100% capacity, the total variable cost is $3,500,000. The product sells for $90 per unit. 1. What is the maximum expected total revenue? 2. What is the variable cost per UNIT? 3. What is the breakeven number of electrical appliances? 4. What is the expected profit if the plant operates at 85% of capacity (85,000 units)? Construct the economic breakeven chart. This should be sketched on paper (do not use Desmos). Label all lines and points of intersection. Include this chart in your upload of supporting work.Malholtra Inc. is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note that a project's projected MIRR can be less than the WACC (and even negative), in which case it will be rejected. WACC: Year Cash flows a. 5.24% b. 4.88% C. 8.64% d. 11.26% e. 9.82% 10.00% 0 -$1,025 1 $280 2 $300 3 $320 4 $340Required information A process for producing the mosquito repellant Deet has an initial investment of $175,000 with annual costs of $45,000. Income is expected to be $90,000 per year. What is the annual breakeven production quantity for both payback periods if net profit, that is, income minus cost, is $10 per gallon? (Consider the rounded values of years calculated in part a. Also, round your answer to the nearest integer.) When /= 0%, the annual breakeven production quantity is determined to be When i=12%, the annual breakeven production quantity is determined to be gallons per year. gallons per year.
- Profitability Index A project has an initial cost of $40,000, expected net cash inflows of $12,000 per year for 7 years, and a cost of capital of 9%. What is the project's PI? (Hint: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to two decimal places.The investment amount is 18.000.000 TL, the data related to a project are as follows and the risk-free discount rate is 10%. YEAR1 YEAR2 POSSIBILITY Cash Flows POSSIBILITY Cash Flows %15 3.000.000 %25 5.000.000 %70 7.000.000 %50 8.000.000 %15 8.000.000 %25 9.000.000 Calculate the expected Profitability Index of the project based on these data.Current Attempt in Progress Mandy is considering investing in an opportunity that would require an upfront cost of $ 520 but would pay $ 150 per year for each of the next 6 years. If Mandy chooses to invest in this opportunity, what would be the IRR? Click here to access the TVM Factor Table calculator. Carry all interim calculations to 5 decimal places and then round your final answer to 1 decimal place. The tolerance is ±0.5. Should Mandy invest in this opportunity if her personal MARR is 20%?