Which ones should be done if the capital budget is limited

Reference no: EM13191364

Project First Cost Annual Benefit
A $15,000 $2,800

B $20,000 $4,200

C $10,000 $2,400

D $30,000 $6,200

E $40,000 $7,600

All projects have a life of 10 years.
(1) Estimate the IRR for each project shown above to within X.X%.
(2) Which ones should be done if the capital budget is limited to $60,000?
(3) What is the minimum attractive rate of return (MARR)?
(4) What is the opportunity cost?

Reference no: EM13191364

Questions Cloud

Find the subgame perfect equilibria of the extensive game : An incumbent in an industry faces the possibility of entry by a challenger. First the challenger chooses whether or not to enter. If it does not enter, neither firm has any further action; the incumbent's payoff is TM (it obtains the profit M in e..

Find rate at which water is being drained from container : Water is being drained from a container which has the shape of an inverted right circular cone. The container has a radius of 6 inches at the top and a height of 10 inches.

Determine how many barrels of oil are used : The amount of oil used by a ship traveling at a uniform speed varies jointly with the distance and the square of the speed. If the ship uses 200 barrels of oil in traveling 500 miles at 28 miles per hour, determine how many barrels of oil are used..

State gas is allowed to double in volume against a constant : 5x10^3 moles of an ideal gas are held in a container of volume 0.0124 dm^3 and surrounded by a thermostat at 298K. The gas is allowed to double in volume against a constant external pressure of 1.0 atm

Which ones should be done if the capital budget is limited : Project First Cost Annual Benefit A $15,000 $2,800 B $20,000 $4,200 C $10,000 $2,400 D $30,000 $6,200 ..

Explain mutually exclusive investment opportunities : Suppose A through F constitute a set of feasible, mutually exclusive investment opportunities. Assume Do Nothing is not an option (i.e. must pick from A through B). Using (1) Present Worth, (2) Annual Worth (EAW), (3) Future Worth, (4) IRR, (5) B/..

Use six rectangles to find estimates of each type for area : Use six rectangles to find estimates of each type for the area under the given graph of f from x = 0 to x = 240.

State molar constant-volume heat capacity : A sample consisting of 3.0 mol of ideal gas molecules at 200K at 2.00 atm is compressed reversibly and adiabatically until the temperature reaches 250K.

Find the minimum sample size : margin of error: 0.01; confidence level: 95%; from a prior study, p hat is estimated by the decimal equivalent of 69%. find the minimum sample size.

User Account

All Pages