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

  Statistics-probability assignment

MATH1550H: Assignment:  Question:  A word is selected at random from the following poem of Persian poet and mathematician Omar Khayyam (1048-1131), translated by English poet Edward Fitzgerald (1808-1883). Find the expected value of the length of th..

  What is the least number

MATH1550H: Assignment:  Question:     what is the least number of applicants that should be interviewed so as to have at least 50% chance of finding one such secretary?

  Determine the value of k

MATH1550H: Assignment:  Question:     Experience shows that X, the number of customers entering a post office during any period of time t, is a random variable the probability mass function of which is of the form

  What is the probability

MATH1550H: Assignment:Questions: (Genetics) What is the probability that at most two of the offspring are aa?

  Binomial distributions

MATH1550H: Assignment:  Questions:  Let’s assume the department of Mathematics of Trent University has 11 faculty members. For i = 0; 1; 2; 3; find pi, the probability that i of them were born on Canada Day using the binomial distributions.

  Caselet on mcdonald’s vs. burger king - waiting time

Caselet on McDonald’s vs. Burger King - Waiting time

  Generate descriptive statistics

Generate descriptive statistics. Create a stem-and-leaf plot of the data and box plot of the data.

  Sampling variability and standard error

Problems on Sampling Variability and Standard Error and Confidence Intervals

  Estimate the population mean

Estimate the population mean

  Conduct a marketing experiment

Conduct a marketing experiment in which students are to taste one of two different brands of soft drink

  Find out the probability

Find out the probability

  Linear programming models

LINEAR PROGRAMMING MODELS

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