Which of the following might be used by a project manager for forecasting in a project such that from this point on in the project, how much more do we expect it to cost to finish the project cost or what will the remaining work cost?
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- 12 When projects are mutually exclusive, selection should be made according to the project with the: A longer life. B larger initial size. C₁ highest NPV. D highest IRR. O D کے OA O B осQ6. A. Define break even analysis. B. Calculate NPV and IRR from data given below Project B $50000 II Year 1 2 3 4 5 Project A $50000 7000 4000 9000 15000 15000 10000 10000 10000 10000 10000Dwight Donovan, the president of Campbell Enterprises, is considering two investment opportunities. Because of limited resources, he will be able to invest in only one of them. Project A is to purchase a machine that will enable factory automation; the machine is expected to have a useful life of four years and no salvage value. Project B supports a training program that will improve the skills of employees operating the current equipment. Initial cash expenditures for Project A are $102,000 and for Project B are $47,000. The annual expected cash inflows are $32,178 for Project A and $15,474 for Project B. Both investments are expected to provide cash flow benefits for the next four years. Campbell Enterprises' desired rate of return is 6 percent. (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.) Required a. Compute the net present value of each project. Which project should be adopted based on the net present value approach? b. Compute the approximate…
- TB MC Qu. 13-01 A project has the following projected outcomes in... A project has the following projected outcomes in dollars: $240, $330, and $590. The probabilities of their outcomes are 30%, 45%, and 25% respectively. What is the expected value of these outcomes? Multiple Choice O O $353.00 $368.00 $413.00 $383.00The IRR of the project is _____ %?5. IRR (S5.3) Write down the equation defining a project's internal rate of return (IRR). In practice, how is IRR calculated?
- Bausch Company is presented with the following two mutually exclusive projects. The required return for both projects is 13 percent. Year 01234+ Project M -$144,000 63,100 81,100 72,100 58,100 Project N -$351,000 154,500 176,000 139,500 106,000b) Using data provided below, compute appropriate values and fill the table below to help identify the least risky and most risky project among alternatives A, B and C using appropriate criteria. Project EV D D2 Var St. dev Coef.0f Var TT 12 0.2 A 18 0.7 28 0.1 10 0.3 В 22 0.6 32 0.1 11 0.1 C 21 0.8 31 0.1 Where n denotes the profit, P is the probability, EV stand for Expected value, D is the Deviation, D$ denote the deviation square, St. dev is the standard deviation and finally Coef.of Var is the coefficient of variation.which of the following could potentially impact the NPV of a project? 1. initial investment amount 2. book value of the initial investment at the end of the project 3. opportunity costs 4. sunk costs a. 1 and 3 b. 1,2,3 and 4 c. 1,2 and 3 d. 1,2 and 4 e. 1 and 2
- Note: Assume i = 13% Period A B D -2500 -1000 2500 -3000 1 5400 -3000 -7000 1500 5500 6500 14400 1000 2000 7200 3000 4000 A. What is the future worth of the project having the third highest future worth? Select one: o a. P929k o b. P4,000k O .-P1,000k o d. P1,144k Assuming management allows to proceed with the implementation of projects as long as its B. future net worth is more than P10,000k. Which among the following projects will you choose to implement? (Choose as many as applicable).Will you accept or reject the project? OAccept ○ Reject At what level of pretax cost savings would you be indifferent between accepting the project and not accepting it? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Cost savingsCompute the Profitability Index (PI) for each project? Project A Project B Profitability Index (PI) 5- In light of your answers above, suppose that these two projects might be mutually exclusive or independent. According to these two assumptions, fill in the blanks in the table below with the suitable answer: Points Investment Criteria If A and B are mutually exclusive, then I would select If A and B are independent, then I would select PBP NPV IRR PI