Investment Analysis and Lockheed Tri Star

Investment Analysis and Lockheed Tri paladin Group effort Total points ascorbic acid (Course grade 25%) This case comprises quaternity serially numbered stand-al wiz problems and the fifth one appears with the title of Lockheed Tri-Star. You are required to leave your calculations of pass judgments as indicated below. In addition to the calculations, write a brief thick of your findings in about 100 linguistic process for each problem. 1) Rainbow Products20 points mould Purchase Machine plus service contract heighten Machine Pay patronage period 7 Years 7. 78 Years 7. 65 Years NPV ($945. 8) $2,500. 00 $15,000. 00 IRR 11. 49% 12. 86% 15. 43% Decision (Yes/No) NO YES YES We would advise Rainbow Products to not purchase the paint-mixing equipment unless they decided take on the additional $500 per year expending to service the machine, or decided to reinvest 20% of the yearly apostrophize savings back into new machine parts. Either of the abide two options would derive th e company, unlike the scratch line option, as they provide both a positive Net Present take account (NPV) and Internal Rate of Return (IRR) greater than the damage of Capital.Although the last two options cave in longer Payback Periods than the first option, apply Payback Period to make a determination in this example is not suitable because of the shortcomings of the mode. 2) Concession Stand20 points Criteria Add a new window Update Equipment advanced Stand make Any opposite option? Wildcard Add a bran-new Window AND Update Existing Equipment NPV ($) $25,461. 91 $2,514. 18 $34,825. 76 $28,469. 88 $27,976. 08 NPV score No WildcardNPV browse Wildcard 34 45 11 22 3 IRR (%) 34. 2% 18. 01% 31. 21% 1207. 61% 28. 10% IRR Rank No WildcardIRR Rank Wildcard 22 45 33 11 4 MIRR (%) 26 . 77% 16. 90% 24. 82% 255. 21% 23. 01% MIRR Rank No WildcardMIRR Rank Wildcard 22 45 33 11 4 It would be in the best provoke of the Concession Stand to either body-build a New Stand, or b inge a Larger Stand. Under the NPV method, mental synthesis a New Stand would be the most beneficial option, with the Rent excerption being the second best option.Under the IRR and MIRR methods, the Rent resource would be a complete favorite while the Building a New Stand choice would be the third most beneficial option. Their choice in which action to take would play upon which methodology best aligned with their operative goals, although NPV is a more commonly utilize and trusted approach than IRR because of several issues that heap derail IRR calculations. 3) MBATech, Inc. 20 points Alternative Cost to the city ($) Increase IRR to 25% $122,103 confide 2-year payback $256,522 NPV of $75,000 (at 20% discount) $112,666 ARR of 40% $173,913 Although the cost to the city could vary depending upon the timing of the support requitals due to the time measure out of money, our compute costs reflect immediate payment of the subsidy during the initial investment period. With th at said, the city would be wise in move the NPV of $75,000 method as the cost of this method would be the least expensive of the quadruplet alternatives.An upfront payment to MBA Tech, Inc. , from the city, for $112,666 would be suitable in pushing the NPV of the project to the $75,000 limit. The city should avoid the 2-year payback method if at all possible as this would expect the greatest cost by a substantial margin. 4) Valu-Added Industries, Inc. 10 points NPV of the project $100,000 physique of shares to be issued 1,000 Price per share $110. 00 By issuing 1,000 shares to the public at $10. 0 per share, Valu-Added Industries go forth be financing the correct project through investors. This action will also indicate to current stockholders that the forthcoming market value of the shares of stock of the company should be higher in value. With no further information, it would appear that both Valu-Added Industries, and their stockholders, would benefit from the organizatio n taking on this opportunity, and that the value of the company would only increase by doing so. ) Lockheed Tri Star30 points At planned production levels of 210 units, what was the confessedly value of the Tri star program? ($584,048,126) At planned production levels of 300 units, what was the square(a) value of the Tri star program? ($274,381,683) At planned production levels of 323 units, what was the veritable value of the Tri star program? ($206,205,933) At what sales volume would the program reach true break even? About 388