Nu Things, Inc., is considering an investment in a business venture with the following anticipated...
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Nu Things, Inc., is considering an investment in a business venture with the following anticipated cash flow results: EOY Cash Flow 0 1 2 3 4 5 6 7 8 9 10 -$115,000 $27,000 $26,000 $25,000 $24,000 $23,000 $22,000 $21,000 $20,000 $19,000 $18,000 $17,000 $16,000 $15,000 $14,000 $13,000 $12,000 $11,000 $10,000 $9,000 $8,000 11 12 13 14 15 16 17 18 19 20 Assume MARR is 20% per year. Based on an external rate of return analysis: Part a Determine the investment's worth. % Carry all interim calculations to 5 decimal places and then round your final answer to 1 decimal place. The tolerance is +0.2. Dark Skies Observatory is considering several options to purchase a new deep-space telescope. Revenue would be generated from the telescope by selling time and use" slots to various researchers around the world. Four possible telescopes have been identified in addition to the possibility of not buying a telescope if none are financially attractive. The table below details the characteristics of each telescope. An internal rate of return analysis is to be performed. T1 T2 T3 T4 Useful Life 10 years 10 years 10 years 10 years First Cost $520,000 $860,000 $390,000 $480,000 Salvage Value $90,000 $115,000 $55,000 $210,000 $500,000 $800,000 $260,000 $280,000 Annual Revenue $90,000 $350,000 $70,000 $85,000 Annual Expenses Determine the preferred telescope if MARR is 35%/year. Click here to access the TVM Factor Table Calculator Rank the alternatives including the null alternative: null, T4,T3,T2, T1 null, T2, T4,T3,T1 null,T3, T4, T1, T2 None of the above. Nu Things, Inc., is considering an investment in a business venture with the following anticipated cash flow results: EOY Cash Flow 0 1 2 3 4 5 6 7 8 9 10 -$115,000 $27,000 $26,000 $25,000 $24,000 $23,000 $22,000 $21,000 $20,000 $19,000 $18,000 $17,000 $16,000 $15,000 $14,000 $13,000 $12,000 $11,000 $10,000 $9,000 $8,000 11 12 13 14 15 16 17 18 19 20 Assume MARR is 20% per year. Based on an external rate of return analysis: Part a Determine the investment's worth. % Carry all interim calculations to 5 decimal places and then round your final answer to 1 decimal place. The tolerance is +0.2. Dark Skies Observatory is considering several options to purchase a new deep-space telescope. Revenue would be generated from the telescope by selling time and use" slots to various researchers around the world. Four possible telescopes have been identified in addition to the possibility of not buying a telescope if none are financially attractive. The table below details the characteristics of each telescope. An internal rate of return analysis is to be performed. T1 T2 T3 T4 Useful Life 10 years 10 years 10 years 10 years First Cost $520,000 $860,000 $390,000 $480,000 Salvage Value $90,000 $115,000 $55,000 $210,000 $500,000 $800,000 $260,000 $280,000 Annual Revenue $90,000 $350,000 $70,000 $85,000 Annual Expenses Determine the preferred telescope if MARR is 35%/year. Click here to access the TVM Factor Table Calculator Rank the alternatives including the null alternative: null, T4,T3,T2, T1 null, T2, T4,T3,T1 null,T3, T4, T1, T2 None of the above
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