Calculate the return on investment (ROI) for the following five
projects, total cost includes the initial...
Calculate the return on investment (ROI) for the following five
projects, total cost includes the initial investment. Which
projects should be invested in if the organization has a spending
constraint of $7,000,000 and its cost of capital is 6%?
Total
Total
Project Investment
Revenue Cost
Profit ROI
A $3,000,000
$5,500,000 $5,000,000 _____
_____
B $2,400,000
$4,000,000 $3,800,000 _____
_____
C $1,350,000
$2,400,000 $2,300,000 _____
_____...
School Type
Cost
30 Year ROI
Annual ROI
Private
$221,700.00
$2,412,000.00
8.70%
Private
$213,000.00
$2,064,000.00
8.30%...
School Type
Cost
30 Year ROI
Annual ROI
Private
$221,700.00
$2,412,000.00
8.70%
Private
$213,000.00
$2,064,000.00
8.30%
Private
$230,100.00
$1,949,000.00
7.90%
Private
$222,600.00
$1,947,000.00
8.00%
Private
$225,800.00
$1,938,000.00
8.00%
Public
$87,660.00
$1,937,000.00
11.20%
Private
$224,900.00
$1,915,000.00
7.90%
Private
$221,600.00
$1,878,000.00
7.90%
Public
$125,100.00
$1,854,000.00
9.80%
Private
$215,700.00
$1,794,000.00
7.90%
Public
$92,530.00
$1,761,000.00
10.60%
Private
$217,800.00
$1,752,000.00
7.70%
Public
$89,700.00
$1,727,000.00
10.70%
Private
$229,600.00
$1,716,000.00
7.50%
Public
$101,500.00
$1,703,000.00
10.20%
Public
$115,500.00
$1,694,000.00
9.70%
Public
$104,500.00
$1,690,000.00
10.10%
Public
$69,980.00
$1,685,000.00
11.50%...
At the beginning of the year, Learer Company’s manager estimated
total direct labor cost assuming 40...
At the beginning of the year, Learer Company’s manager estimated
total direct labor cost assuming 40 persons working an average of
3,000 hours each at an average wage rate of $20 per hour. The
manager also estimated the following manufacturing overhead costs
for the year. Indirect labor $ 316,200 Factory supervision 100,000
Rent on factory building 147,000 Factory utilities 95,000 Factory
insurance expired 75,000 Depreciation—Factory equipment 521,000
Repairs expense—Factory equipment 67,000 Factory supplies used
75,800 Miscellaneous production costs 43,000 Total...
A proposed cost-saving device has an installed cost of $685,000.
The device will be used in...
A proposed cost-saving device has an installed cost of $685,000.
The device will be used in a five-year project but is classified as
three-year MACRS property for tax purposes. The required initial
net working capital investment is $95,000, the marginal tax rate is
23 percent, and the project discount rate is 13 percent. The device
has an estimated Year 5 salvage value of $74,000. What level of
pretax cost savings do we require for this project to be
profitable? MACRS...
Problem 1
1.Startup cost: $10,000.
The cash flows for Years 1 through 5 are estimated to...
Problem 1
1.Startup cost: $10,000.
The cash flows for Years 1 through 5 are estimated to be $2500,
$4000, $5000, $3000, $1000.
Discount rate = 6%.
PV = C/(1+r)^t
NPV = Add all PVs and subtract investment
Problem 2
2. Startup costs in Year 0: $70,000.
The cash flows for Years 1 through 4 are estimated to be
$40,000
Discount rate = 12%.
Show Present Value for each year
Show Net Present Value after 4 years
as of today
Problem...
1. A three-year-old machine has a cost of $17,200, an estimated
residual value of $1,200, and...
1. A three-year-old machine has a cost of $17,200, an estimated
residual value of $1,200, and an estimated useful life of 32,000
machine hours. The company uses units-of-production depreciation
and ran the machine 3,400 hours in year 1; 7,750 hours in year 2;
and 7,900 hours in year 3. Calculate the net book value at the end
of the third year.
2. A three-year-old machine has a cost of $63,000, an estimated
residual value of $5,800, and an estimated useful...