Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i want last answer plz , faster ompletion Status: Manama Inc. is considering two mutually exclusive projects A and B. The initial investment and the

i want last answer plz , faster
image text in transcribed
image text in transcribed
image text in transcribed
ompletion Status: Manama Inc. is 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-Year's period, and both projects carry same tisk. 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 798,000 357.000 Initial investment Cost of equipment (zero salvage value) Annual revenues and costs: Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket operating costs 420,000 126,000 70,000 56,000 525,000 252,000 71,000 161.000 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 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? EXHIBIT 143-1 Present Value of St. Table Summary: Table of present values of St. Penods are listed in first coluna: 1-30 and 40, Columns are given for percents from percent to 25 percent Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 1946 204. 215. 22% 23% 24% 259 1 0.962 0.952 0.943 0935 0.926 09170-909 0.901 0.895 0.885 0.87708700.862 0.855 0.8470.840 0.833 0.826 0.830 0.8130.506 0.800 0,925 0.907 0.590 0.873 0.8570.542 0.6260.8120,797.0 783 0 769 0.756 0 743 0.731 0.7180.7060 694 0,683 0,672 0.661 0.650 0.640 + 0.889 0.864 0.840081607940 7720 7310 731 07120.6930.6750658 0,6410.624 0.609 0.593 0.579 0 564 3510.370.534 0 312 + 0.855 0.8230.79207630,735 0.70 0.683 0.659 0 636 0.6130592057205590534 0.5160 499 6,462 0.467 0,451 0.4370.433 0.410 $ 0.220.784 074707130681 0.650 0621 0 593 0.5670.5430.519 0497 0.47604560-437 0.4190,40 0,386 033700,455 01410328 6 0.790 0.746 0.705 0.666 0 630 0.396 0.36403250 3070-4500-560432 0.410 0,3900 3700 3520335 0.3190 303 02990-2750263 0.7600 711 066506330.5830,4705130483045204350 4000 460354033303140 2960 970 62610 2490.233 0 3320210 8 0.7370.677 0.6270.582 0.540 0.502 04670434 0 4040 3760 351 0.3270.305 0.285 0 266 03490233 0.218 0,20:0 191 0.19 0.165 07030645 5920 314 500 0.460 0.4403913610 331 30 284 0263.240.2350309 0.19 0.18 0.167 0.15 0.14 0.134 10 0.67606140388 0.30 0.46304220 1860 18203220295 0 370034702296.20 0.19 0.16 0.160.1990 1370126 0.16 0.107 me 54 minutes, 29 seconds. Question Completion Status: 968 1 1 EXHIBIT 14-2 Present Value of an Annuity of S1 in Areas Table Sumunary: Table of present values of an unity of 51 in arrears. Periods are listed in first come: 1-30 and 40. Columns are given for percats from 4 percent to 25 percent Periods 4% 5% 794 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 0.962 0.952 0.943 0.93 0.926 0917 0.909 0.901 0.893 0.883 0.877 0.870 0.862 0.8550.84708100,833 0.836 0.530 0.313 0.06 0.500 2 1.886 1859 1833 1.SOS 1.783 1.159 1.76 1.713 1.690 1668 1647 1626 605 1.385 1 566 1.547 1.528 1509 1.493 1474 147 1440 3 2.775 2.723 2.673 2.64 377 231 2:4872.444 2.402 2.36133222283 2.346 2210 2174 2.140 2.106 2.074 2042 2011 1951 1952 3 3.60 3.346 3.465 3.357 3.312 3.340 3.170 3.102 1037 2.9742914 2.855 2798 2.74) 2620 2639 2.589 2.540 2.494445 2.4042363 5 4.453 439 4312 4.100 3.991 3.890 3.79 3.696 3.605 3.5173431135032743.199 3:1273.058 2.99 2.9263864280321452.689 6 5345.076 4917 4.767 4633 4 486 4355 4331 4111.998899 1.7543.6853.589 3.493.410126 3.45316730933.0202951 6.002 5.786 552 5389 5.306 5,033 4.8687134564 4.4334 285 4.160 4,019 192338123.706 005 3 Sos 141633973.342.161 8 6.731 6.463 6.210.3.971 5.747 3.335 5333 5. 146 496 4.799 1619 4.487 44444.2074 0733.95458373.261619 3.SIS 3:4213339 9 7435 7.108 6.8036.515 6.347 995 5.7595517328 5132494647246074.45140416140313.05.36733566 1461 10 $111 7723 7360004 6710 6418 6145 $88966305 426 5216 50194833 4659 44944,3194192 40543.9233.1993.680 1571 661 FEW For the toolbar, press ALT+F10(PC) or ALT-FN+F10(Mac) R . ompletion Status: Manama Inc. is 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-Year's period, and both projects carry same tisk. 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 798,000 357.000 Initial investment Cost of equipment (zero salvage value) Annual revenues and costs: Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket operating costs 420,000 126,000 70,000 56,000 525,000 252,000 71,000 161.000 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 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? EXHIBIT 143-1 Present Value of St. Table Summary: Table of present values of St. Penods are listed in first coluna: 1-30 and 40, Columns are given for percents from percent to 25 percent Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 1946 204. 215. 22% 23% 24% 259 1 0.962 0.952 0.943 0935 0.926 09170-909 0.901 0.895 0.885 0.87708700.862 0.855 0.8470.840 0.833 0.826 0.830 0.8130.506 0.800 0,925 0.907 0.590 0.873 0.8570.542 0.6260.8120,797.0 783 0 769 0.756 0 743 0.731 0.7180.7060 694 0,683 0,672 0.661 0.650 0.640 + 0.889 0.864 0.840081607940 7720 7310 731 07120.6930.6750658 0,6410.624 0.609 0.593 0.579 0 564 3510.370.534 0 312 + 0.855 0.8230.79207630,735 0.70 0.683 0.659 0 636 0.6130592057205590534 0.5160 499 6,462 0.467 0,451 0.4370.433 0.410 $ 0.220.784 074707130681 0.650 0621 0 593 0.5670.5430.519 0497 0.47604560-437 0.4190,40 0,386 033700,455 01410328 6 0.790 0.746 0.705 0.666 0 630 0.396 0.36403250 3070-4500-560432 0.410 0,3900 3700 3520335 0.3190 303 02990-2750263 0.7600 711 066506330.5830,4705130483045204350 4000 460354033303140 2960 970 62610 2490.233 0 3320210 8 0.7370.677 0.6270.582 0.540 0.502 04670434 0 4040 3760 351 0.3270.305 0.285 0 266 03490233 0.218 0,20:0 191 0.19 0.165 07030645 5920 314 500 0.460 0.4403913610 331 30 284 0263.240.2350309 0.19 0.18 0.167 0.15 0.14 0.134 10 0.67606140388 0.30 0.46304220 1860 18203220295 0 370034702296.20 0.19 0.16 0.160.1990 1370126 0.16 0.107 me 54 minutes, 29 seconds. Question Completion Status: 968 1 1 EXHIBIT 14-2 Present Value of an Annuity of S1 in Areas Table Sumunary: Table of present values of an unity of 51 in arrears. Periods are listed in first come: 1-30 and 40. Columns are given for percats from 4 percent to 25 percent Periods 4% 5% 794 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 0.962 0.952 0.943 0.93 0.926 0917 0.909 0.901 0.893 0.883 0.877 0.870 0.862 0.8550.84708100,833 0.836 0.530 0.313 0.06 0.500 2 1.886 1859 1833 1.SOS 1.783 1.159 1.76 1.713 1.690 1668 1647 1626 605 1.385 1 566 1.547 1.528 1509 1.493 1474 147 1440 3 2.775 2.723 2.673 2.64 377 231 2:4872.444 2.402 2.36133222283 2.346 2210 2174 2.140 2.106 2.074 2042 2011 1951 1952 3 3.60 3.346 3.465 3.357 3.312 3.340 3.170 3.102 1037 2.9742914 2.855 2798 2.74) 2620 2639 2.589 2.540 2.494445 2.4042363 5 4.453 439 4312 4.100 3.991 3.890 3.79 3.696 3.605 3.5173431135032743.199 3:1273.058 2.99 2.9263864280321452.689 6 5345.076 4917 4.767 4633 4 486 4355 4331 4111.998899 1.7543.6853.589 3.493.410126 3.45316730933.0202951 6.002 5.786 552 5389 5.306 5,033 4.8687134564 4.4334 285 4.160 4,019 192338123.706 005 3 Sos 141633973.342.161 8 6.731 6.463 6.210.3.971 5.747 3.335 5333 5. 146 496 4.799 1619 4.487 44444.2074 0733.95458373.261619 3.SIS 3:4213339 9 7435 7.108 6.8036.515 6.347 995 5.7595517328 5132494647246074.45140416140313.05.36733566 1461 10 $111 7723 7360004 6710 6418 6145 $88966305 426 5216 50194833 4659 44944,3194192 40543.9233.1993.680 1571 661 FEW For the toolbar, press ALT+F10(PC) or ALT-FN+F10(Mac) R

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Responsibility

Authors: Tom Cannon

2nd Edition

0273738739, 9780273738732

More Books

Students also viewed these Accounting questions

Question

What perspective or approach to talent would be appropriate?

Answered: 1 week ago

Question

What policies and practices for talent development are needed now?

Answered: 1 week ago