Question: Waht do you mean this table? Part 1: Define the alternatives for the problem Calisto Launch Services is an independent space corporation and has been


Waht do you mean this table?
Part 1: Define the alternatives for the problem Calisto Launch Services is an independent space corporation and has been contracted to develop and launch one of two different satellites. Initial equipment will cost $750 thousand for the first satellite and $1000 thousand for the second. Development will take 5 years at an expected cost of $140 thousand per year for the first satellite, $110 thousand per year for the second. The same launch vehicle can be used for either satellite and will cost $295 thousand at the time of the launch 5 years from now. At the conclusion of the launch, the contracting company will pay Calisto $2.9 millon for either satellite. Calisto is also considering launching both satellites. Because Calisto would have to upgrade its facilities to handle two concurrent projects, the initial costs would rise by $150 thousand in addition to the first costs of each satellite. Calisto would need to hire additional engineers and workers, raising the yearly costs to a total of $400 thousand. An extra compartment would be added to the launch vehicle at an additional cost of $75 thousand. As an incentive to do both, the contracting company will pay for both launches plus a bonus of $0.9 million. Using an internal rate of return analysis with a MARR of 12%/year, what should Calisto Launch Services do? Part 3: Develop the Excel spreadsheet The following table has been developed to solve for the incremental internal rate of return for the comparison of Second only to First only: EOY Second only First only INCR, CF $-750 thousand $-250 thousand $ 1-4 $-110 thousand $30 thousand $ 4 $2.465 million Fill in the missing values in the table. (Round all calculations to the nearest five dollars. The tolerance is +/- 5.) What is the rate of return? IRR = (Do calculations to five decimal places and round your final answer to two decimal places. The tolerance is +/- 0.02. If entering a negative number use the (-) sign.) Part 5: Compute the incremental internal rate of return for the second round of analysis Using the following table, compute the internal rate of return for the incremental cash flow for the Both satellites first only INCR, CF $-1.9 million $-750 thousand $-1.15 million 1-4 $-400 thousand $-140 thousand $-260 thousand 5 $5.93 million $2.465 million $3.465 million IRR = (Do all calculations to 5 decimal places and round final answer to 2 decimal places. The tolerance is +/- 0.02.) Show Work is REQUIRED for this question: Open Show Work
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