considering two mutually exclusive projects A and B. The initial investment and the estimates of the annual revenues and costs associated with each project presented in the below table. The economic life of the project will be 5-Years period, and both projects carry same risk. Manama uses a discount rate of 12%. After considering the current economic situation Manama Inc. has set a maximum payback period of 4 years and minimum return on investment (ROI) 18%.

	Projects A	Projects B
Initial investment:
Cost of equipment (zero salvage value)	798,000	357,000
Annual revenues and costs:
Sales revenues	420,000	525,000
Variable expenses	126,000	252,000
Depreciation expense	70,000	71,000
Fixed out-of-pocket operating costs	56,000	161,000

To determine the appropriate discount factor(s) using the tables provided.

Required:

1. Calculate the payback period for each project.

2. Calculate the net present value for each project.

3. Calculate the simple rate of return for each product.

4. Which of the two projects (if either) would you recommend that Manama Inc. accept? Why?

please fast ..thank u

1 EXHIBIT 14-1 Present Value of SI: Table Summary: Table of present values of S1. Periods are listed in first colum: 1-30 and 40. Columns are given for percents from 4 percent to 25 percent Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 0.962 0.952 0943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.813 0.806 0.800 2 0.925 0.907 0.890 0.873 0.8570.8420.826 0.812 0.797 0.783 0 769 0.756 0.743 0.731 0.7180.706 0.694 0.683 0.672 0.661 0.650 0.640 3 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.73107120.693 0.675 0,658 0.6410.624 0.609 0.593 0.579 0 564 0.551 0.537 0.524 0.512 0.835 0.823 0.792 0.763 0.735 0.708 0.683 0.659 0.636 0.6130.592 0.572 0.5520.534 0.516 0.499 0.482 0.467 0,451 0437 0423 0.410 5 0.822 0.784 0.747 0.7130,681 0.650 0.621 0.593 0.5670.543 0.5190.497 0.476 0.456 0.4370.4190.402 0.386 0.370 0.355 0.341 0.328 6 0.790 0.746 0.705 0.666 0.630 0.396 0.564 0.535 0,507 0.480 0.456 0.432 04100390 0.370 0,352 0.335 0319 0.303 0.289 0.275 0.262 7 0.760 0.711 0.665 0.623 0.583 0.5470.513.0.482 0.452 0.425 0.400 0.376 0.354 0.333 0.3140.296 0.279 0.263 0.249 0.235 0.222 0.210 0.731 0.6770,627 0.582 0.540 0.502 0.467 0.434 0.404 0.376 0.3510327 0.305 0,285 0.266 0.2490 233 0.218 0.2040.191 0.179 0.168 9 0.703 0.6450 920,544 0.500 0.460 0.424 0.391 0.3610333 0.308 0.284 0.263 0.243 0.22 0.209 0.194 0.180 0.167 0.15 0.144 0.134 10 0,676 0.614 0.558 0.508 0.463 0.422 0.386 0.352 0.322 0.295 0.270 0.2470.227 0.208 0.1910.176 0.162 0.1490.1370.126 0.116 0.107 4 8 1 EXHIBIT 14B-2 Present Value of an Annuity of SI in Arrears Table Summary: Table of present values of an annuity of Si in arrears. Periods are listed in fist column: 1-30 and 40. Columns are given for percents from 4 percent to 25 percent Periods 49 5% 696 796 896 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 0.962 0.952 0943 0.935 0.926 0917 0909 0.901 0.893 0.885 0.8770.870 0.8620 855 0.8470.840 0.833 0.826 0,820 0.313 0.8060.800 2 1.886 1859 1.833 1.808 1.783 1759 1736 1.713 1.690 1.668 1.647 1626 1605 1.585 1.366 1 547 1.528 1.509 1492 1.474 1.457 1.440 2.775 2.723 2673 2.624 2.577 2.531 2.487 2.444 2.402 2,361 2,322 2283 2246 2210 2.174 2.140 2.106 2.074 2042 2.011.981 1.952 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.102 3.037 2.974 2.914 2.855 2.798 2.743 2.690 2.639 2.589 2.540 2.494 2.448 24042.362 4.452 4329 4.212 4.100 3.993 3.890 3.791 3.696 3.605 3.517 3433 3.352 3:274 3.1993.127 3.058 2.991 2.926 2.564 2803 2.745 2.689 5.242 5,076 4,917 4,767 4.623 4.486 4.355 4231 4.111 3.9983.8893.784 3.6853.589 3.498 3.410 3.336 3.2453.167 3.0923.020 2.951 7 6.002 5.786 5.582 5.389 5.206 5.033 4.86847124 564 4 423 4.288 4.160 4.039 3.9223.812 3.7063.605 3.508 3.416 3.327 3.2023.161 6,733 6.463 6.210 5971 5.747 5.535 5.335 5.146 4.968 4.799 4.639 4 457.4344 4 2074,0783.954 3,837 3.726 3.619 3.5183421 3.329 7.435 7.108 6.802 6.515 6.347 5.995 5759 5.5375,328 5.132 4 946 477246074 451 4.303 4.163 4,031 3.905 3.786 3.6733 566 3.463 8,111 7.722 7.360 7.024 6710 6.418 6.145 5.889 5.650 5.426 5216 5.019 4,833 4.65944944.339 4.1924.054 1.923 3.7993 682 1571 3 4 5 6 8 9 10 For APO WALTH BV