A company is considering an investment with the following ex…

A company is considering an investment with the following expected cash flows, in constant dollars. Year NCF, Constant Dollars 0 −[inv],000 1 [y1],000 2 [y1],000 3 [y1],000 The general inflation rate ( f ) during this project period is expected to be [fbar]%. The company’s inflation-free interest rate is [ip]%. What is the equivalent present worth of this project at Year 0? (Round to nearest dollar.)

In order to expand tele-health services, a provider must inv…

In order to expand tele-health services, a provider must invest in technology for video and audio calls. The cost for the new equipment is $1,900,000. The equipment would be depreciated as a 5-year property using the MACRS method. Gross income from this investment is expected to be $750,000 in year 1 and increase by $30,000 each year. Annual operating expenses are expected to be $150,000 in year 1 and increase by $20,000 each year. The provider’s combined marginal tax rate is 39%. The provider uses a study period of 6 years for these purchases and plans to keep the equipment indefinitely. What is the cash flow after taxes for Year 4?    $[ca2] (round to nearest dollar) Refer to the CFAT summary below. Use the CFAT that you calculated in (a) for Year 4. What is the after-tax Rate of Return over the study period?    [ror]% (round percentage to one decimal) If their MARR is 14%, should the provider invest in this equipment, YES or NO?    [in]   Year CFAT,$ 0 −1,900,000 1 514,200 2 609,220 3 520,472 4 (a) CFAT 5 475,763 6 439,182  

In order to expand tele-health services, a provider must inv…

In order to expand tele-health services, a provider must invest in technology for video and audio calls. The cost for the new equipment is $1,900,000. The equipment would be depreciated as a 5-year property using the MACRS method. Gross income from this investment is expected to be $750,000 in year 1 and increase by $30,000 each year. Annual operating expenses are expected to be $150,000 in year 1 and increase by $20,000 each year. The provider’s combined marginal tax rate is 39%. The provider uses a study period of 6 years for these purchases and plans to keep the equipment indefinitely. What is the cash flow after taxes for Year 2?    $[ca2] (round to nearest dollar) Refer to the CFAT summary below. Use the CFAT that you calculated in (a) for Year 2. What is the after-tax Rate of Return over the study period?    [ror]% (round percentage to one decimal) If their MARR is 14%, should the provider invest in this equipment, YES or NO?    [in]   Year CFAT,$ 0 −1,900,000 1 514,200 2 (a) CFAT 3 520,472 4 469,663 5 475,763 6 439,182  

QID [id]: Several professional societies claim to have progr…

QID [id]: Several professional societies claim to have programs that are very effective at teaching enrollees how to become Six Sigma Master Black Belts. Recent results for two societies are summarized below: Society MBB Graduates per Year Total Program Cost, $ ΑΣΘ  [xp] [xc] ΙΣΕ [yp] [yc] Calculate the incremental cost-effectiveness ratio. (Round answer to zero decimals.)

Two HVAC systems are being evaluated to improve ventilation…

Two HVAC systems are being evaluated to improve ventilation at a grocery store.  The property manager must choose one of the systems. Use an interest rate of 9% per year and a 7‑year study period. Fuss Monters First cost, $ 116,000 51,000 Annual O&M, $/year 84,000 65,000 Benefits, $/year 220,000 165,000 Disbenefits, $/year 0 50,000 (Round ratios to 2 decimal places) What is the Benefit-Cost ratio for “Fuss?”   [a1] What is the Benefit-Cost ratio for “Monters?”   [a2] Based on a Benefit-Cost analysis, which system should be selected, Fuss or Monters?   [bc]