Question: please answer all Sunk costs include any cost that: O will change if a project is undertaken. will be incurred if a project is accepted.


Sunk costs include any cost that: O will change if a project is undertaken. will be incurred if a project is accepted. has previously been incurred and cannot be changed. O is paid to a third party and cannot be refunded for any reason whatsoever. will occur if a project is accepted and once incurred, cannot be recouped, You must find the payback for a project, and you have misplaced some of the information that you were given You know that the project will generate positive cash flows of 560.000 per year at the end of each of the next 5 years that its NPV is $75,000 ind that the company's interest rate is 10%. What is the project's regular payback? Hint You must first find the project's cost then use it to find the payback, 2.11 years 2.27 years 2.38 years 2.45 years 2.54 years As a financial manager, you are looking at a new production system with an installed cost of 5397,800. This cost will be depreciated straight-line to zero over the project's 7-year Ife, at the end of which the system can be scrapped for $61,200. The system will save the firm $122.400 per year in pretax operating costs, and the system requires an initial investment in net working capital of $28.560. All of the net working capital will be recovered at the end of the project The tax rate is 33 percent and the discount rate is 9 percent. What is the net present value of this project? F $41311 -$7.820 $81,507 $98,441 $118.8241
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
