UNIT2HW

Problem 4–1 The Riverside Company is evaluating two mutually exclusive assets: Black and White, at the end of 2020. The firm’s weighted average cost of capital is 8%.  Data for each project are as follows: Black   White Cost of investment—end 2020 25,000   Cost of investment—end 2020 $43,000 Cash inflow—2021 8,000   Cash inflow—2021 20,000 Cash inflow—2022 8,000   Cash inflow—2022 30,000 Cash inflow—2023 8,000   Cash inflow—2023 10,000 Cash inflow—2024 8,000   Cash inflow—2024 0 Cash inflow—2025 8,000   Cash inflow—2025 0   Requirements: Compute the net present value for each asset using Excel's NPV function. Determine which project the Riverside Company should invest in based on NPV. Compute the profitability index for each project. Determine which project the Riverside Company should invest in based on the profitability index. Should the firm invest in the Black or White project?  What is the basis for your…

2 ts 02:59:19 eBook Hint Print ferences Kara, Incorporated, imposes a payback cutoff of three years for its international investment projects. Year O 1 2 3 4 Cash Flow (A) -$ 65,000 25,500 33,000 23,500 10,500 Project A Project B What is the payback period for both projects? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Cash Flow (B) -$ 75,000 17,500 20,500 31,000 235,000 Project A O Project B years years Which project should the company accept?

Question 16 of 30 View Policies Current Attempt in Progress -/0.35 ⠀ Crane Crafts Corp. management is evaluating two independent capital projects that will each cost the company $200,000. The two projects will provide the following cash flows: Year Project A Project B 1 $66,750 $26,450 2 93,450 66,125 3 34,235 143,250 4 151,655 98,110 (a1) What is the payback period of both projects? (Round answers to 2 decimal places, e.g. 15.25.) The Payback of Project A is years and Project B is eTextbook and Media Save for Later Using multiple attempts will impact your score. 20% score reduction after attempt 2 years. Attempts: 0 of 3 used Submit Answer (a2) The parts of this question must be completed in order. This part will be available when you complete the part above. Search ♡

D Question 10 What is the IRR of Project C if the outlay is $225,000 and the after-tax cash inflows for years one through four are: $45,000, $70,000, $80,000, and $105,000? O 13.21% 12.90 0 11.00 11.80 13.53. 1 pts

QUESTION 14 You have a total of $30,000 to invest in a project and are considering the following three projects: Cash Flows Project A ($30,000) $8,500 Year Project B ($30,000) $19,600 Project C ($30,000) $10,400 1 $9,300 $17,300 $4,500 $10,400 $10,400 3. $10,400 4. $11,200 $4,200 $10,400 $12,300 $2,300 $10,400 If the cost of capital (discount rate) is 10%, which project(s) do you invest in and why? A. Project B- it will pay back the quickest OB. Project C- it generates the greatest cash flow C. Project A-it has the highest accounting rate of return D.Project B-it has the highest net present value E. Project A- it has the highest net present value OF. Project C- it has the highest profitability index

D Question 8 What is the IRR of Project B if the outlay is $13,000 and the after-tax cash inflows for years one through four are: $4,700, $3,600, $3,000, and $4,800? 09.11% 10.90 10.01 09.21 10.80

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QUESTION 32 As a member of Apache Oil Corporation's financial staff, you must estimate the Year 1 cash flow for a proposed project with the following data. What is the Year 1 cash flow? Sales revenues, each year Depreciation Other operating costs Interest expense Tax rate a. $16,351 O b. $17,212 O c. $18,118 O d. $19,071 e. $20,075 $42,500 $10,000 $17,000 $4,000 35.0%

Problem 6.42(b) What is the dollar amount you need to invest every year, starting at age 26 and ending at age 65 (i.e., for 40 years), to reach the target lump sum at age 65? (Round factor values to 4 decimal places, e.g. 1.5212 and final answer to 2 decimal places, e.g. 1,525.12.) Investment needed to reach the target $

financial management ch 11 quiz  please show work, thank you.

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A Moving to another question will save this response. Question 1 Evaluate the following projects, given a $300 million budget. Project A costs $300 million and A's present value of net cash flows af value of net cash flows of $220 million, and Project C's cost is $130 million with a present value of net cash flows of $105 million. O Accept Projects A and B O Accept Projects B and C O Accept Projects A and C O Reject all three projects O None of the listed choices is correct Moving to another question will save this response. MacBook Air

Chapter 4 Exercise Pg.170 Question 2Perform a financial analysis for a project using the format provided in Figure 4-5. Assume the projected costs and benefits for this project are spread over four years as follows: Estimated costs are $200,000 in year 1 and $30,000 each year in years 2, 3, and 4. Estimated benefits are $0 in year 1 and $100,000 each year in years 2, 3, and 4. Use a 9 percent discount rate and round the discount factors to two decimal places. Create a spreadsheet (or use the business case financials template provided on the companion Web site) to calculate and clearly display the NPV, ROI, and year in which payback occurs. In addition, write a paragraph explaining whether you would recommend investing in this project, based on your financial.

Unit VIII Question 16 part a

QUESTION 8 The INTERNAL RATE OF RETURN for the project shown above is: O 3.92% O 13.25 O 15.17% 9 21.22% O No IRR QUESTION 9

Question number 37

Exhibit 2.3A Examp'e Comparing Two Projects Using the Payback Method Project A Project B Formulas Investment Annual saving 5750,000 5215,000 $250.000 580,000 Project A Payback 07/D8) Project B Payback (7/P8) Payback Period" Rate of Return"* Project A: Rate of Return (06/D7) Project D. Rate of Return (F8/P7) Accept/Reject Exclanetion Project A Accept/Reject Accept is Payback<5 Years and Rate of Return 15% Project B * Note: Parbnck does not use she time valce of money ** Note: Rate of returnis reciprocalof Fayback

Module 5 Question 5 ​(Calculating changes in net operating working​ capital)  Tetious Dimensions is introducing a new product and has an expected change in net operating income of ​$750,000. Tetious Dimensions has a 30 percent marginal tax rate. This project will also produce ​$195,000 of depreciation per year. In​ addition, this project will cause the following changes in year​ 1: Question content area top Part 1 ​(Related to Checkpoint 12.1​) ​(Calculating changes in net operating working​ capital)  Tetious Dimensions is introducing a new product and has an expected change in net operating income of ​$750,000. Tetious Dimensions has a 30 percent marginal tax rate. This project will also produce ​$195,000 of depreciation per year. In​ addition, this project will cause the following changes in year​ 1:     Without the Project With the Project Accounts receivable ​$51,000   ​$88,000   Inventory 101,000   183,000   Accounts payable 66,000…

Part D: Investment Decisions Now consider that Luxio has identified the following two mutually exclusive projects: Year 0 1 2 3 4 Cash Flow (A) -$34,000 $16,500 $14,000 $10,000 $6,000 Cash Flow (B) -$34,000 $5,000 $10,000 $18,000 $19,000. 1. What is the IRR for each of these projects? Based on IRR decision rule, which project should the company accept? 2. If the required return is 11%, what is the NPV for each of these projects? Based on the NPV decision rule, which project should the company accept? 3. Over what range of discount rates would the company choose project A? At what discount rate would the company be indifferent between these two projects? Explain.

12:24 C @ 0 72% O ll Airtel WiFi a What is the project's free casI HOW this will require the firm's accounts receivable to increase by 12 percent of the od . sales, Moreover, Faraway estimates that inventories will be 15 percent of the added cost of goods sold, while accounts payable will be 10 percent of that added cost. The firm's CFO estimates that its sales and cost of goods sold over the five-year estimated life of the investment are as follows: Year 1 2 4. Sales $150,000 $162,000 $174,960 $188,957 $204,073 $220,399 Cost of goods sold 90,000 97,200 104,976 113,374 122,444 132,240

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3 10 points eBook Print References U.S. Metallurgical Incorporated reported the following balances in its financial statements and disclosure notes at December 31, 2023. Plan assets Projected benefit obligation $ 450,000 300,000 U.S.M.'s actuary determined that 2024 service cost is $65,000. Both the expected and actual rate of return on plan assets are 8%. The interest (discount) rate is 4%. U.S.M. contributed $125,000 to the pension fund at the end of 2024, and retirees were paid $49,000 from plan assets. Required: 1. What is the pension expense at the end of 2024? 2. What is the projected benefit obligation at the end of 2024? 3. What is the plan assets balance at the end of 2024? 4. What is the net pension asset or net pension liability at the end of 2024? 5. Prepare journal entries to record the (a) pension expense, (b) funding of plan assets, and (c) retiree benefit payments. Complete this question by entering your answers in the tabs below. Req 1 to 4 Req 5 1. What is the pension…

Question 10 What is the IRR of Project C if the outlay is $225,000 and the after-tax cash inflows for years one through four are: $45,000, $70,000, $80,000, and $105,000? O 13.21% O 12.90 11.00 11.80 O 13.53. Question 11 What is the NPV of Project C? O $4.274.96 1.138.33 O 3.891.33 O2,884.34 2.638.33. 1 pt 1 pts

ment #5 Question 8, P7-23 (similar to) Part 1 of 7 HW Score: 40%, 4 of 10 points O Points: 0 of 1 Save K You are deciding between two mutually exclusive investment opportunities. Both require the same initial investment of $10.4 million. Investment A will generate $2.16 million per year (starting at the end of the first year) in perpetuity. Investment B will generate $1.44 million at the end of the first year, and its revenues will grow at 2.9% per year for every year after that. a. Which investment has the higher IRR? b. Which investment has the higher NPV when the cost of capital is 5.4%? c. In this case, for what values of the cost of capital does picking the higher IRR give the correct answer as to which investment is the best opportunity? a. Which investment has the higher IRR? The IRR of investment A is ☐ %. (Round to the nearest integer.)

Question 1 5 pts Atlantic Manufacturing is considering a new investment project that will last for four years. The delivered and installed cost of the machine needed for the project is $23,163 and it will be depreciated according to the three-year MACRS schedule. The project also requires an initial increase in net working capital of $302. Financial projections for sales and costs are in the table below. In addition, since sales are expected to fluctuate, NWC requirements will also fluctuate. The end-of-year NWC requirements are included below (hint: these NWC capital requirements DO NOT represent the change in NWC for the period). The $0 requirement for NWC at the end of year 4 means that all NWC is recovered by the end of the project. The corporate tax rate is 35% and the required return on the project is 12%. Year 1 2 3 4 Sales $11,178 $12,030 $13,342 $10,583 Costs 2,348 2,810 3,275 1,042 NWC 323 352 217 0 Requirements What is the project's NPV? (Round answer to 2 decimal places. Do…

Problem 4–1The Riverside Company is evaluating two mutually exclusive assets: Black and White, at the end of 2020. The firm’s weighted average cost of capital is 8%. Data for each project are as follows: Data is enclosed in the picture. Requirements: Compute the net present value for each asset using Excel's NPV function.Determine which project the Riverside Company should invest in based on NPV.Compute the profitability index for each project.Determine which project the Riverside Company should invest in based on the profitability index.Should the firm invest in the Black or White project? What is the basis for your choice?

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Back to Assignment Attempts 3. Problem 17.03 (AFN Equation) EG eBook Keep the Highest / 10 Carlsbad Corporation's sales are expected to increase from $5 million in 2021 to $6 million in 2022, or by 20%. Its assets totaled $2 million at the end of 2021. Carlsbad is at full capacity, so its asset must grow in proportion to projected sales. At the end of 2021, current liabilities are $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accrued liabilities. Its profit margin is forecasted to be 3%. $ a. Assume that the company pays no dividends. Use the AFN equation to forecast the additional funds Carlsbad will need for the coming year. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest dollar. b. Why is this AFN different from the one when the company pays dividends? I. Under this scenario the company would have a higher level of retained earnings, which would reduce the…