There are four projects (Potential Jobs) and you are tasks with analyzing to see in which order should we fund the projects. Additionally, you will project a 1-2 page written analysis justifying your positions presented later. The analysis should have the following headers: 1) an introduction, 2) facts, 3) outcome and 4) justification. Name (Potential Job):
Job Z Purchase Price: $50,000 Salvage Value: $0 Recovery Period (3,5,7,15,20 yrs): 15 Asset Life (2-20 yrs): 17 Expensing ($10,000 maximum): $7,000 Income Tax Rate: 22.00% Percent Financed by Loan: 82.00% Loan Interest Rate: 6.00% Loan Length (years): 7 Opportunity Cost: 5.00% Cash Income: $5,000 Cash Expenses: $1,600 Inflation Rate: 2.00%
Name (Potential Job): Job A Purchase Price: $24,800 Salvage Value: $1,000 Recovery Period (3,5,7,15,20 yrs): 5 Asset Life (2-20 yrs): 20 Expensing ($10,000 maximum): $5,000 Income Tax Rate: 28.00% Percent Financed by Loan: 66.00% Loan Interest Rate: 7.00% Loan Length (years): 5 Opportunity Cost: 5.00% Cash Income: $10,000 Cash Expenses: $1,600 Inflation Rate: 5.00%
Name (Potential Job): Job P Purchase Price: $36,000 Salvage Value: $5,000 Recovery Period (3,5,7,15,20 yrs): 3 Asset Life (2-20 yrs): 15 Expensing ($10,000 maximum): $7,000 Income Tax Rate: 26.00% Percent Financed by Loan: 75.00% Loan Interest Rate: 10.00% Loan Length (years): 6 Opportunity Cost: 6.00% Cash Income: $5000 Cash Expenses: $1,600 Inflation Rate: 4.00%
Name (Potential Job): Job F Purchase Price: $24,000 Salvage Value: $2,000 Recovery Period (3,5,7,15,20 yrs): 7 Asset Life (2-20 yrs): 10 Expensing ($10,000 maximum): $10,000 Income Tax Rate: 28.00% Percent Financed by Loan: 75.00% Loan Interest Rate: 9.00% Loan Length (years): 5 Opportunity Cost: 6.00% Cash Income: $15000 Cash Expenses: $1,240 Inflation Rate: 5.00%