What is the irr for the project in problem

Assignment Help Basic Statistics
Reference no: EM131001689

1. Using the project cost structure calculations discussed in class, calculate the customer price for a project requiring the following:

Senior Engineer:                      $2000/week for 6 weeks

Junior Engineer:                      $1500/week for 12 weeks

Configuration Mgmt:              $900/week for 5 weeks

Test and Integration:               $700/week for 3 weeks

Overhead:                               75%

Other Direct Costs:                 $20,000

G&A:                                      25%

Profit:                                      7%

Show your work for full credit!  (Suggestion: Copy/paste cells as an Excel object into Word.)

2. Your team just completed the cost estimates for your project.  If accepted, you would need an initial investment of $200,000 in Research and Development.  There will be construction costs in the first year of $350,000.  Annual sales of $300,000 will begin in year 2 and continue through year 5.  Your annual operating costs will be $50,000 for each year you sell the product.  If the discount rate is 12%, what is the NPV for this project? Should you invest in this project based on the NPV?   

Show your work for full credit!  (Suggestion: Copy/paste cells as an Excel object into Word.)

3. What is the IRR for the project in problem #6?  If the Minimum Attractive Rate of Return (MARR) is 20%, would you recommend investing in this project?  Discuss any reasons that you might not invest in a project even if it exceeds the MARR.

Show your work for full credit!  (Suggestion: Copy/paste cells as an Excel object into Word.)

Reference no: EM131001689

Questions Cloud

What would be other valuable things to look at : For Online Physics 2110, Calculus Based, RODP in Tennessee is the webassign important on the final. If not, which it was not for the midterm, what would be other valuable things to look at?
Indirect method to direct method for reporting cash flows : For the current year, Packers Company decided to switch from the indirect method to the direct method for reporting cash flows from operating activities on the statement of cash flows. Will the change cause the amount of net cash flow from operati..
How community policing compares to the other policing : Review the City of Boise Community Policing Web site, and think about how community policing compares to the other styles of policing
What is f7 for an organ pipe of the same length closed : An open-ended organ pipe is 3.9 m long. What is the frequency for f6? What is f7 for an organ pipe of the same length closed at one end?
What is the irr for the project in problem : What is the IRR for the project in problem #6?  If the Minimum Attractive Rate of Return (MARR) is 20%, would you recommend investing in this project?  Discuss any reasons that you might not invest in a project even if it exceeds the MARR.
What is the time to full charge : An open switch, a 6.09 kohm resistor and a 4.15 microfarad capacitor are connected in series across a 17.0V battery. The capacitor starts with no stored charge. Find the time constant. The switch is closed. What is the time until 70 percent of full..
Claculating the after-tax cash flows : Plane B has a life of 10 years, will cost $132 million, and will produce after-tax cash flows of $25 million per year. Zappe plans to serve the route for 10 years. The company's WACC is 12%. If Zappe needs to purchase a new Plane A, the cost will ..
Each couple equals the 4 nm moment : Each couple equals the 4 Nm moment. What the are the forces, F and P?
Find the velocities of a and b after impact : The two particles collide with each other as shown. Find the velocities of A and B after impact.

Reviews

Write a Review

Basic Statistics Questions & Answers

  Distance between points in rectangular coordinate system

In rectangular coordinate system, determine the distance between the points (-4,1) and (8,6).

  Do the results differ from the governments statistics

On-Time Performance by Airlines According to the Bureau of Transportation statistics, on-time performance. At a = 0.05, do these results differ from the government's statistics?

  Determine the test statistic

The Ministry of Environment, Science and Technology has one of its administrative centers located out of town and the majority of employees drive to work. As part of the Ministry’s ‘green’ policy

  Assembly time using new method

Using the .10 level of significance, can we conclude that the assembly time using the new method is faster?

  Find probability that selected incoming-first-year students

Find the probability that of 800 randomly selected incoming first-year students, at least 260 have elected to enroll in the course.

  Suppose an urn contains 7 red balls 7 green balls and 7

suppose an urn contains 7 red balls 7 green balls and 7 blue balls where the balls of each color are labeled with the

  On a certain legislative committee 38 of the members are

on a certain legislative committee 38 of the members are republicans. if 23 of the members are men and 35 of the men

  Mutual funds minimize risk by diversifying investments

Can we infer from these data that there is a positive linear relationship between the value of the fund and the price of gold - Mutual funds minimize risk by diversifying investments they make.

  Hypothesis test for difference having two population mean

At the .05 significance level, is the number of units produced on the afternoon shift larger?

  A history of smoking and those that developed lung cancer

One example of public health that I have witnessed firsthand during my clinical rotations in oncology is that of lung cancer caused by a patient history of smoking. During one research study that I was a part of we studied the numbers of lung cancer ..

  What was the highest score earned

Obtained first quartile = 47 third quartile = 70 standard deviation = 8 range = 58 mean = 58 median = 63 mode = 56 midrange = 63. what was the highest score earned.

  Probability of success in basketball player shoots

A basketball player shoots 8 free throws during a game. If we assume that each attempt has the same probability of success, the sample space for the number of baskets he/she makes during the game is ??

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd