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just need c & d (below) not sure what data is needed so all is provided :) what else do you need ? c. Calculate
just need c & d (below)
not sure what data is needed so all is provided :)
what else do you need ?
c. Calculate the internal rate of return (IRR) of each project and compare them against the book value and market value weighted average cost of capital. d. Select the best investment based on their IRR and indicate the total cost and benefits. \begin{tabular}{|l|c|c|c|} \hline Table 1 All Numbers in Thousands & Project & Annual Net & \\ \hline Project & Cost & Cash Flow & Life \\ \hline Aerospace aircraft sensing systems & $400,000 & $87,500 & 8 \\ \hline Aerospace protection systems & $300,000 & 78,580 & 6 \\ \hline Otis freight elevators & $250,000 & 72,950 & 7 \\ \hline Otis upgrade elevators and escalators & $300,000 & 82,784 & 6 \\ \hline Pratt \& Whitney business jet & $150,000 & 42168 & 6 \\ \hline Pratt \& Whitney aircraft engines & $275,000 & 97,765 & 4 \\ \hline \end{tabular} UTC Corporation has the following financial statements: \begin{tabular}{|l|r|r|r|} \hline & $14,858,000 & $14,794,400 & $15,614,200 \\ \hline Minority Interest & $1,590,000 & $1,486,000 & $1,351,000 \\ \hline Total Liabilities & $60,051,000 & $56,919,400 & $58,224,200 \\ \hline \multicolumn{2}{|l|}{ Stockholders' Equity } & \multicolumn{3}{|c|}{} \\ \hline Misc. Stocks Options Warrants & $296,000 & $122,000 & $140,000 \\ \hline Common Stock (450,000 shares) & $18,901,000 & $16,033,000 & $15,300,000 \\ \hline Retained Earnings & $41,257,000 & $39,895,960 & $38,611,000 \\ Treasury Stock & $26,022,000 & $23,781,000 & $21,922,000 \\ \hline Other Stockholder Equity & $8,429,000 & $7,724,000 & $6,776,000 \\ Total Stockholder Equity & $26,003,000 & $24,545,960 & $25,353,000 \\ \hline Total Lib. and Equity & $86,054,000 & $81,465,360 & $83,577,200 \\ \hline \end{tabular} c. Calculate the internal rate of return (IRR) of each project and compare them against the book value and market value weighted average cost of capital. d. Select the best investment based on their IRR and indicate the total cost and benefits. \begin{tabular}{|l|c|c|c|} \hline Table 1 All Numbers in Thousands & Project & Annual Net & \\ \hline Project & Cost & Cash Flow & Life \\ \hline Aerospace aircraft sensing systems & $400,000 & $87,500 & 8 \\ \hline Aerospace protection systems & $300,000 & 78,580 & 6 \\ \hline Otis freight elevators & $250,000 & 72,950 & 7 \\ \hline Otis upgrade elevators and escalators & $300,000 & 82,784 & 6 \\ \hline Pratt \& Whitney business jet & $150,000 & 42168 & 6 \\ \hline Pratt \& Whitney aircraft engines & $275,000 & 97,765 & 4 \\ \hline \end{tabular} UTC Corporation has the following financial statements: \begin{tabular}{|l|r|r|r|} \hline & $14,858,000 & $14,794,400 & $15,614,200 \\ \hline Minority Interest & $1,590,000 & $1,486,000 & $1,351,000 \\ \hline Total Liabilities & $60,051,000 & $56,919,400 & $58,224,200 \\ \hline \multicolumn{2}{|l|}{ Stockholders' Equity } & \multicolumn{3}{|c|}{} \\ \hline Misc. Stocks Options Warrants & $296,000 & $122,000 & $140,000 \\ \hline Common Stock (450,000 shares) & $18,901,000 & $16,033,000 & $15,300,000 \\ \hline Retained Earnings & $41,257,000 & $39,895,960 & $38,611,000 \\ Treasury Stock & $26,022,000 & $23,781,000 & $21,922,000 \\ \hline Other Stockholder Equity & $8,429,000 & $7,724,000 & $6,776,000 \\ Total Stockholder Equity & $26,003,000 & $24,545,960 & $25,353,000 \\ \hline Total Lib. and Equity & $86,054,000 & $81,465,360 & $83,577,200 \\ \hline \end{tabular} Step by Step Solution
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