CS计算机代考程序代写 CIVL 2812—Project Appraisal (Semester 2, 2019)

CIVL 2812—Project Appraisal (Semester 2, 2019)

CIVL 2812—Project Appraisal (Semester 2, 2021)

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Tutorial 6 – Answers

ESSENTIAL QUESTIONS

Solution 7-18

Taxable Income = gross income – all expenses (excluding capital investments) – depreciation deductions
Taxable income = $800,000 – $500,000 – $70,000
= $230,000
Federal taxes owed (from Table 7-5) = $22,250 + 0.39[$230,000-100,000]

Solution 7-26

a)

The IRR is found as follows: 0 = −$280,000 + $64,000(P/A, i′, 7).
Solving yields i′ = 13.4% (solve by trial and error followed by linear interpolation)
As after tax IRR is greater than 10%, the robot should be acquired.

b)

P.W of after tax cash flow at 10% = $40,286
By trial and error, solving for IRR, I’% = 14.62%

Solution 8-4

F.W of their 30 year investment plan
F.W =$32,000( F/A;7%;30) = $3,022,746

Purchasing power in today’s dollar
P = $3,022,746(P/F;2%;30) = $1,668,858
They will meet their saving expectations.

CIVL 2812—Project Appraisal (Semester 2, 2021)

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ESSENTIAL QUESTIONS

Solution 8-9

Solution 8-27

Given, C.I = $950,000; O&M (R$) =$92,600; ir =10.05% per year; f (inflation) = 4.5% per year;
f’ = 5.7% per year
Then, M.V7 (A$) =$95,000; O&M (A$) = 92,000(1+ 0.057)1 = $97,878
im = 0.1005+0.045+(0.1005*0.045) = 0.15 = 15% per year
Let the annual uniform revenue in actual dollars be R. Then at break even; P.W(im) = 0

𝑃. 𝑊(15%) = −950,000 − 97,878 [
1−(

𝑝

𝑓
;15%;7)(

𝑓

𝑝
;5.7%;7)

15%−5.7%
] + 𝑅 (

𝑃

𝐴
; 15%; 7) + 95,000(

𝑝

𝑓
; 15,7)

𝑃. 𝑊(15%) = −950,000 − 97,878 [
1−0.3759∗1.474

0.093
] + 𝑅(4.1604) + 95,000(0.3759)

𝑹 = 𝟑𝟑𝟐, 𝟓𝟔𝟒. 𝟕

EXTENSION QUESTIONS

Solution 7-22
Given:
Capital investment = $135,000 + $25,000 = $160,000
Salvage value for depreciation (S.V) = $10,000
Depreciation deduction for six years = ($160,000 – $10,000)/6 = $25,000
Market value after its useful life (M.V) = $30,000

a) After tax cash flow calculations:

b) After tax Present worth at MARR = 12%

P.W (12%) = -160,000+29,200(P/A, 12%, 6) – 720(P/G, 12%, 6) + 22000(P/F, 12%, 6)
= -160,000 + 29,200 (4.1114) – 720(8.930) + 22000(0.5066)
= -35,231.5

CIVL 2812—Project Appraisal (Semester 2, 2021)

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EXTENSION QUESTIONS

Solution 7-22 contd..

c) Before tax MARR = 12%/ (1-40%) = 20%

Let the increment in annual revenue be X
P.W before tax will then be:
P.W (20%) = -60,000 + X (P/A,20%,6))
60,000=X*3.3255
X = $18,042

An increment of around 45% in annual revenue can justify the investment (Before tax

Solution 7-44

Hence choose Freezer 1.

CIVL 2812—Project Appraisal (Semester 2, 2021)

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EXTENSION QUESTIONS

Solution 8-19

Solution 8-30

CIVL 2812—Project Appraisal (Semester 2, 2021)

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EXTENSION QUESTIONS

Solution 8-30 contd..