Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Q2:check whether the project is accepted or rejected and recommend the best project, MARR=6% and n=8 years, using ROI, NPV, AW, IRR methods. Initial cost

image text in transcribed
image text in transcribed
image text in transcribed
Q2:check whether the project is accepted or rejected and recommend the best project, MARR=6% and n=8 years, using ROI, NPV, AW, IRR methods. Initial cost 189000 Project A Annual Increase in Annual revenues annual revenues running cost 40500 1350 8100 Salvage value 18900 Initial cost 270000 Project B Annual Annual revenues running cost 48600 1350 Salvage value 27000 Q1: Recommend one of the projects using payback period methods Project x Project X Year 3 Year 4 Year 5 Year 6 Investment 0 Year 1 Cash Flow Year 2 Year 3 Year 4 0 Year 5 Year 6 Year 1 Year 2 Cash Inflows 0 2689.25381.1 8097.3 10759.513748.4 17933.4 0 6642 7306.2 Cash Outflows 25903.8 2689.2 2988.9 3488.43985 2 4484.7 49815 34870.5 1328.4 1992.6 7970.4 8634,6 9298.8 2656.8 3321 3985.2 9963 4649.4 Q2: check whether the project is accepted or rejected and recommend the best project, MARR=6% and n=8 years, using ROI, NPV, AW, IRR methods. Initial cost 189000 Project A Annual Increase in Annual revenues annual revenues running cost 40500 1350 8100 Salvage value 18900 Initial cost 270000 Project B Annual Annual revenues running cost 48600 1350 Salvage value 27000

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

A Guide To Starting Your Hedge Fund

Authors: John Thompson, Erik Serrano Berntsen

1st Edition

0470519401, 978-0470519400

More Books

Students also viewed these Finance questions