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Questions Data Below Questions Below Regarding A) (total investment for all projects) Data Below Cost of Capital = 12% what else do you need i
Questions
Data Below
Questions Below
Regarding A)
(total investment for all projects)
Data Below
Cost of Capital = 12%
what else do you need i just gave you what you asked for... be specific
Suggested Questions Part I a. What is the total investment and how much funds are available for investment? b. Calculate the NPV of each project and indicate the total investments which would meet the available funds. 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. e. Calculate the PI of each project and indicate the total investments which would meet the available funds? f. Compare your the results in part d,f, and g. Are they resulted in the same investment and total costs? Explain. g. Based on your answers in part d,f, and g what would you recommend to the CBC ? \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} Suggested Questions Part I a. What is the total investment and how much funds are available for investment? b. Calculate the NPV of each project and indicate the total investments which would meet the available funds. 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. e. Calculate the PI of each project and indicate the total investments which would meet the available funds? f. Compare your the results in part d,f, and g. Are they resulted in the same investment and total costs? Explain. g. Based on your answers in part d,f, and g what would you recommend to the CBC ? \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} Suggested Questions Part I a. What is the total investment and how much funds are available for investment? b. Calculate the NPV of each project and indicate the total investments which would meet the available funds. 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. e. Calculate the PI of each project and indicate the total investments which would meet the available funds? f. Compare your the results in part d,f, and g. Are they resulted in the same investment and total costs? Explain. g. Based on your answers in part d,f, and g what would you recommend to the CBC ? \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} Suggested Questions Part I a. What is the total investment and how much funds are available for investment? b. Calculate the NPV of each project and indicate the total investments which would meet the available funds. 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. e. Calculate the PI of each project and indicate the total investments which would meet the available funds? f. Compare your the results in part d,f, and g. Are they resulted in the same investment and total costs? Explain. g. Based on your answers in part d,f, and g what would you recommend to the CBC ? \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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