ECO 1192A Blue Assignment
ECO 1192ABlue AssignmentC.ThoretFall 2013A.Project Instructions1.7.eight.Seek the advice of the Excel project allocation file on Digital Campus for yourassignment.You'll get a zero rating for finishing a unique project.You require a BLUE Scantron for the solutions to a BLUE project.The color of your Scantron is recognized by a Highlighter mark in itsupper right-hand nook.The Course Code on the Scantron reply sheet for this project isECO1192AB. Don't forget to darken the suitable ovals.Reply sheetswill be distributed by the teacher on the November 26th lectureare to be submitted at 7 pm on the December third lecture.Every project is value 10% of the general course grade.Late Scantron sheets will most undoubtedly be rejected.B.Issues and Questions2.three.four.5.6.QUESTIONS 1 to 7A city is learning the acquisition of one in every of three mutually unique truckmodels. Their estimated money flows and different info are offered inthis Desk.Truck Mannequin InformationProject ParametersABC1. Preliminary Price$22,00026,20017,0001|Page2. Annual revenues3. Annual costs4. Finish-of-life salvagevalue5. Helpful life$14,000$7,000$four,0004 yearsMARR = 10%15,0007,5005,00012,0005,8003,5001051.The NPW of truck A to the closest $100 isa) $2900; b) $8700; c) $22800; d) $30200; e) None of those solutions.2.The NPW of truck B to the closest $100 isa) $2900; b) $8700; c) $22800; d) $30200; e) None of those solutions.three.The NPW of truck C to the closest $100 isa) $2900; b) $8700; c) $22800; d) $30200; e) None of those solutions.four.The most effective truck mannequin isa) A; b) B; c) C; d) None of those solutions.5.The restoration interval (in years to 2 decimals) of truck A primarily based on thediscounted payback methodology isa) three.96; b) four.50; c) three.73; d) None of those solutions.6.The restoration interval (in years to 2 decimals) of truck B primarily based on thediscounted payback methodology isa) four.2; b) four.50; c) four.75; d) None of those solutions.7.The restoration interval (in years to 2 decimals) of truck C primarily based on thediscounted payback methodology isa) 2.35; b) 2.92; c) three.16; d) None of those solutions.].Questions eight and 9Project info is proven this Desk whereo All initiatives are unbiased of each other;o MARR = 10%;o Challenge salvage values are negligible.Choosing Initiatives With Capital RationingProjectsABCFirst Price$15,00025,00010,000Life6 years86Web annual money flows$5,7007,2002,800DE25,00040,0004128,1008,2008.Which total undertaking (s) is (are) finest if capital limitation is $30,000?a) A; b) B; A&B; c) A&B&D; d) A&C&D&E; e) None of those solutions.9.Which total undertaking (s) is (are) finest if capital limitation is $60,000?a) A; b) B; A&B; c) A&B&D; d) A&C&D&E; e) None of those solutions.QUESTIONS 10 to 32You're contemplating the acquisition of a ceramic retail enterprise. Additionalinformation on this potential funding consists of:1.2.Deliberate possession of four years.Rental revenues earlier than taxes of $500,000 in yr 1 growingthereafter at an annual price of 1%.three. Annual bills of $200,000 in yr 1 rising thereafter at anannual inflation price of two%.four. Todays asking value for the constructing is $2 million (now) with anexpected promoting value of $2.5 million after four years.5. The Canadian revenue tax price on the sort of funding is assumedto be 50% (on web annual revenues, capital positive aspects or losses, and onrecaptured depreciation).6. Buildings and tools are to be depreciated utilizing the DB methodand a 20% depreciation price.7. The half-year rule applies to the depreciation of the constructing.eight. Working capital = $zero.9. You're required to get a mortgage of $1.500,000 at a 10% price.10. Reimbursement of the mortgage:Finish-of-year 1 (EOY1) =10%EOY2 = 30%EOY3 = 30%EOY4 = 30%11. MARRs areBefore-taxes with inflation = 20%Earlier than-taxes with out inflation (inflation-free) = 19%After-taxes with inflation = 10%After-taxes with out inflation (inflation free) = 9percentBTCF = Earlier than-Tax Money Stream; ATCF = After-Tax Money Stream; CFOE = Money Stream on Proprietor Equity0Annual revenues (AR) (Precise $)Annual prices (AC) (Precise $)1. BTCF "Operations" (Precise $)2. BTCF "SV" (Precise $)three. BTCF "Working Capital" (Precise $)four. Complete BTCF (Precise $)5. BTCF "Operations" (Fixed $)6. BTCF "SV" (Fixed $)7. BTCF "Working Capital" (Fixed $)eight. Complete BTCF (Fixed $)9. Annual Depreciation10. Curiosity on mortgage11. Taxable Working Revenue12. Taxes on Working Revenue13. Capital positive aspects14. Taxes on capital positive aspects15. Recaptured depreciation16. Taxes on recaptured dep.17. ATCF "Operations" (Precise $)18. ATCF "Operations" (Fixed $)19. ATCF "SV" (Precise $)20. ATCF "SV" (Fixed $)21. ATCF "Working Capital" (Precise $)22. ATCF "Working Capital" (Fixed $)1END OF YEAR23AA4BBCCDDEEFFGGHHIIJJKKLLMMNN4|Page023. Complete ATCF (Precise $)24. Complete ATCF (Fixed $)25. (=R10.) Curiosity on mortgage26. Mortgage reimbursement27. CFOE (Precise $)28. CFOE (Fixed $)PP1END OF YEAR23OOQQRRSSTTUU410.The greenback quantity of cell AA (nearest $1000) isa) $310,000 b) $345,000; c) $380,000; d) None of those solutions.11.The greenback quantity of cell BB (nearest $1000) isa) $310.000; b) $312,000; c) $313,000; d) $318,000; e) None of theseanswers.12.The greenback quantity of cell CC (nearest $1000 dollars) isa) $1,750,000; b) $2,200,000; c) $2,500,000; d) $three,500,000.13.The greenback quantity of cell DD (nearest $100) isa) $310,200; b) $311,000; c) $311,100; d) $318,000; e) None of theseanswers.14.The greenback quantity of cell EE (nearest $100) isa) $279,300; b) $288,400; c) $289,200; d) $289,400; e) None of theseanswers.15.The greenback quantity of cell FF (nearest $1000) isa) $2,310,000; b) $three,760,000; c) $four,161,000; d) $5,120,000; e) None ofthese solutions.16.The greenback quantity of cell GG (nearest $1000) isa) $200,000; b) $225,000; c) $260,000; d) $265,000; e) None of theseanswers.17.The greenback quantity of cell HH (nearest $1000) isa) $239,000; b) $276,000; c) $286,000; d) $288,000; e) None of theseanswers.18.The greenback quantity of cell II (nearest $1000) isa) $125,000; b) $135,000; c) $145,000; d) $160,000; e) None of theseanswers.19.The greenback quantity of cell JJ (nearest $100) isa) -$23,400; b) $13,400; c) -$32,900; d) $18,300; e) None of theseanswers.20.The greenback quantity of cell KK (nearest $1000) isa) $500,000; b) $525,000; c) $675,000; d) $750,000; e) None of theseanswers.21.The greenback quantity of cell LL (nearest $1000) isa) $910,000; b) $920,000; c) $922,000; d) $932,000; e) None of theseanswers.6|Web page22.The greenback quantity of cell MM (nearest $1000) isa) $452,000; b) $458,000 c) $460,000; d) $461,00023.The greenback quantity of cell NN (nearest $1000) isa) $335,000; b) $340,000; c) $345,000; d) $365,000; e) None of theseanswers.24.The greenback quantity of cell OO (nearest $1000) isa) $395,000; b) $400,000; c) $401,000; d) $403,000.25.The greenback quantity of cell PP isa) -$1M; b) -$1.5M; c) -$2M; d) -$2.5M.26.The greenback quantity of cell QQ (nearest $1000) isa) $378,000; b) $380,000; c) $384,000; d) $387,000.27.The greenback quantity of cell RR (nearest $1000) isa) $zero; b) $155,000; c) $160,000; d) $176,000.28.The greenback quantity of cell SS (nearest $1000) isa) $430,000; b) $450,000; c) $475,000; d) $485,00029.The greenback quantity of cell TT isa) -$zero.5M; b) -$1.0M; c) -$1.5M; d) -2.0M.30.The greenback quantity of cell UU isa) -$zero.5M; b) -$1.0M; c) -$1.5M; d) -2.0M.31.The MARR required for the calculation of the Web Current Price of theBefore-Tax Money Stream (BTCF) in present dollars isa) 20%; b) 19%; c) 10%; d) 9%.32.The MARR required for the calculation of the Web Current Price of theAfter-Tax Money Stream (ATCF) in fixed dollars isa) 20%; b) 19%; c) 10%; d) 9%.